• Washington Trust Bancorp, Inc.
email this
  • Washington Trust Announces Fourth Quarter 2008 Impairment Charge
    Company Release - 02/18/2009 08:43

    WESTERLY, R.I.--(BUSINESS WIRE)-- Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced that, as a result of a rating agency downgrade to below "investment grade" of one of its perpetual preferred investment securities after its January 28, 2009 announcement of year-end 2008 results and before filing its 2008 Annual Report on Form 10-K, Washington Trust will record an other-than-temporary impairment and take a pre-tax charge to earnings of $595 thousand ($387 thousand, after tax; 2 cents per diluted share) in the fourth quarter of 2008.

    Because this investment security was carried at fair value at December 31, 2008, the loss on this security, net of tax, was previously reported in unrealized losses on securities available for sale within accumulated other comprehensive loss, a component of total shareholders' equity on the Corporation's balance sheet. This charge will reduce full-year 2008 net income to $22.2 million, or $1.57 per diluted share, from $22.6 million, or $1.59 per diluted share, as previously reported. For the fourth quarter 2008, this charge will decrease its previously reported net income to $4.2 million, or 27 cents per diluted share, from $4.6 million, or 29 cents per diluted share.

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

        Source: Washington Trust Bancorp, Inc.

    Contact: Washington Trust Bancorp, Inc. David V. Devault, 401-348-1319 Executive Vice President, Chief Financial Officer and Secretary dvdevault@washtrust.com