-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, IqQVuitE4j6gJkZB1Oby/SKn0vQOUkWk0H3Dy9+K6OPY2F1t97bAj0YGjngs8tQH Y21KxmY459lK7d9BorPpAw== 0000737468-94-000013.txt : 19941122 0000737468-94-000013.hdr.sgml : 19941122 ACCESSION NUMBER: 0000737468-94-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: WASHINGTON TRUST BANCORP INC CENTRAL INDEX KEY: 0000737468 STANDARD INDUSTRIAL CLASSIFICATION: 6022 IRS NUMBER: 050404671 STATE OF INCORPORATION: RI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13091 FILM NUMBER: 94559498 BUSINESS ADDRESS: STREET 1: 23 BROAD ST CITY: WESTERLY STATE: RI ZIP: 02891 BUSINESS PHONE: 4013481200 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the period ended September 30, 1994 ---------------------------------------------- or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 For the transition period from ________________ to _____________ Commission file Number 0-13091 ----------------------------------------------- WASHINGTON TRUST BANCORP, INC. - - --------------------------------------------------------------------- RHODE ISLAND 05-0404671 - - ------------------------------- ----------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 23 BROAD STREET, WESTERLY, RHODE ISLAND 02891 - - --------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (401) 348-1200 --------------- N/A - - --------------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [ X ] Yes [ ] No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports to be filed by Section 12, 13 or 15(d) of the Securities Exchange ACT of 1934 subsequent to the distribution of securities under a plan confirmed by a court. [ ] Yes [ ] No APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's class of common stock, as of the close of the latest practical date. Class Outstanding at November 1, 1994 ------------------------------ -------------------------- Common stock, $.0625 par value 2,819,575 Shares WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1994 CONTENTS -------- Page No. PART I. ITEM 1. Financial Information -------- - - -------------------------------------- Consolidated Balance Sheets September 30, 1994, September 30, 1993, and December 31, 1993 3 Consolidated Statements of Income Three Months and Nine Months Ended September 30, 1994 and 1993 4 Consolidated Statements of Changes in Shareholders' Equity Nine Months Ended September 30, 1994 and 1993 5 Consolidated Statements of Cash Flows Nine Months Ended September 30, 1994 and 1993 6 Notes to Consolidated Financial Statements 7 PART I. ITEM 2. - - ---------------- Management's Discussion and Analysis of Financial Condition and Results of Operations 11 PART II. Other Information 20 - - --------------------------- Signatures 21 - - ---------- WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
September 30, September 30, December 31, ASSETS 1994 1993 1993 - - ------ ------------- ------------- ------------ Cash and due from banks $ 13,960,976 $ 16,312,217 $ 14,978,427 Federal funds sold 3,812,143 5,680,000 6,671,701 Securities available for sale, at market value at September 30, 1994; cost $35,856,443 at September 30, 1994; at lower of cost or market at September 30, 1993 and December 31, 1993; market value $51,405,322 and $44,420,747 at September 30, 1993 and December 31, 1993, respectively 41,182,787 42,254,917 36,236,543 Mortgage loans held for sale -- 2,210,648 3,709,499 Investment securities, at cost; market value $50,322,579, $51,242,042 and $53,333,595 at September 30, 1994 and 1993, and December 31, 1993, respectively 51,948,657 50,111,286 52,497,832 Loans 379,328,936 348,088,482 352,510,695 Less reserve for possible loan losses 8,760,005 8,826,631 8,657,263 ----------- ----------- ----------- Net loans 370,568,931 339,261,851 343,853,432 Premises and equipment, net 14,604,000 14,596,420 14,354,731 Accrued interest receivable 3,193,769 2,945,617 2,870,911 Other real estate owned, net 6,796,061 9,886,382 7,831,146 Other assets 2,588,864 4,569,020 4,324,602 ----------- ----------- ----------- Total assets $ 508,656,188 $ 487,828,358 $ 487,328,824 =========== =========== =========== LIABILITIES Demand deposits $ 53,730,240 $ 44,924,928 $ 43,924,560 Savings deposits 194,767,198 202,679,450 200,846,347 Time deposits 191,014,875 178,819,814 178,603,713 ----------- ----------- ----------- Total deposits 439,512,313 426,424,192 423,374,620 Dividends payable 563,736 410,599 411,473 Federal Home Loan Bank advances 19,532,394 19,000,000 20,500,000 Accrued expenses and other liabilities 4,241,063 4,383,476 4,579,806 ----------- ----------- ----------- Total liabilities 463,849,506 450,218,267 448,865,899 ----------- ----------- ----------- SHAREHOLDERS' EQUITY Common stock of $.0625 par value; authorized 10,000,000 shares in 1994 and 3,000,000 shares in 1993; issued 2,880,000 shares 180,000 120,000 120,000 Paid-in capital 2,839,991 2,799,344 2,822,908 Retained earnings 39,332,747 35,660,616 36,418,073 Unrealized gain on securities available for sale 3,195,806 -- -- Treasury stock, at cost; 61,568 shares in September 30, 1994, 80,465 shares at September 30, 1993 and 74,505 shares at December 31, 1993 (741,862) (969,869) (898,056) ----------- ----------- ----------- Total shareholders' equity 44,806,682 37,610,091 38,462,925 ----------- ----------- ----------- Total liabilities and shareholders' equity $ 508,656,188 $ 487,828,358 $ 487,328,824 =========== =========== ===========
See accompanying notes to consolidated financial statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 1994 1993 1994 1993 ------- ------- ------- ------- Interest income: Interest and fees on loans $7,948,985 $7,497,066 22,744,533 22,154,729 Investment securities and securities available for sale: Interest 1,136,308 1,061,970 3,398,450 3,003,404 Dividends 172,259 242,537 543,091 657,768 Federal funds sold 99,412 117,045 192,330 240,555 --------- --------- ---------- ---------- Total interest income 9,356,964 8,918,618 26,878,404 26,056,456 --------- --------- ---------- ---------- Interest expense: Savings deposits 1,104,627 1,200,334 3,225,449 3,804,017 Time deposits 1,974,678 2,041,009 5,779,828 6,132,620 Other 325,417 287,044 1,036,068 814,589 --------- --------- ---------- ---------- Total interest expense 3,404,722 3,528,387 10,041,345 10,751,226 --------- --------- ---------- ---------- Net interest income 5,952,242 5,390,231 16,837,059 15,305,230 Provision for loan losses 200,000 600,000 800,000 2,000,000 --------- --------- ---------- ---------- Net interest income after provision for loan losses 5,752,242 4,790,231 16,037,059 13,305,230 --------- --------- ---------- ---------- Noninterest income: Trust income 880,659 722,648 2,482,222 2,195,325 Service charges on deposit accounts 408,265 355,101 1,203,900 1,052,942 Merchant processing fees 326,115 274,576 478,356 405,063 Gains on sales of securities available for sale -- 198,245 681,558 345,844 Gains (losses) on loan sales 13,276 167,612 (18,541) 430,783 Other income 193,424 162,134 556,110 507,987 --------- --------- ---------- ---------- Total noninterest income 1,821,739 1,880,316 5,383,605 4,937,944 --------- --------- ---------- ---------- Noninterest expense: Salaries and employee benefits 2,557,631 2,363,261 7,415,630 6,504,024 Net occupancy 313,090 287,690 916,833 901,696 Equipment 300,599 302,300 903,496 923,995 Deposit taxes and assessments 295,726 290,782 893,649 925,276 Foreclosed property costs, net 132,808 51,961 261,640 551,880 Office supplies 177,227 120,956 507,587 384,034 Advertising and promotion 64,923 138,950 327,095 279,289 Credit and collection 106,403 222,235 397,201 452,410 Charitable contributions -- -- 699,897 3,744 Other 1,011,340 876,539 2,575,914 2,304,225 --------- --------- ---------- ---------- Total noninterest expense 4,959,747 4,654,674 14,898,942 13,230,573 --------- --------- ---------- ---------- Income before income taxes and cumulative effect of accounting change 2,614,234 2,015,873 6,521,722 5,012,601 Applicable income taxes 844,000 701,000 2,103,000 1,705,000 --------- --------- ---------- ---------- Income before cumulative effect of accounting change 1,770,234 1,314,873 4,418,722 3,307,601 Cumulative effect of change in accounting for income taxes -- -- -- 305,000 --------- --------- ---------- ---------- Net income $1,770,234 $1,314,873 4,418,722 3,612,601 ========= ========= ========== ========== Weighted average shares outstanding - fully diluted 2,893,520 2,824,863 2,889,834 2,821,100 Earnings per share - fully diluted: Income before cumulative effect of accounting change $ .61 $ .47 $1.53 $1.17 Cumulative effect of change in accounting for income taxes -- -- -- .11 ----- ----- ----- ----- Net income $ .61 $ .47 $1.53 $1.28 ===== ===== ===== ===== Cash dividends declared per share $ .20 $ .15 $ .53 $ .44
See accompanying notes to consolidated financial statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY NINE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993
Unrealized gain on securities Total Common Paid-in Retained available Treasury Shareholders' Stock Capital Earnings for sale Stock Equity ------- --------- ---------- ---------- ---------- ------------ Balances, December 31, 1992 $ 120,000 $ 2,784,205 $ 33,276,746 $ -- $ (1,231,156) $ 34,949,795 Net income, nine months ended September 30, 1993 3,612,601 3,612,601 Cash dividends declared (1,228,731) (1,228,731) Issuance of common stock from treasury 15,139 261,287 276,426 ------- --------- ---------- ---------- ----------- ---------- Balances, September 30, 1993 $ 120,000 $ 2,799,344 $ 35,660,616 $ -- $ (969,869) $ 37,610,091 ======= ========= ========== ========== =========== ========== Balances, December 31, 1993 $ 120,000 $ 2,822,908 $ 36,418,073 $ -- $ (898,056) $ 38,462,925 Net income, nine months ended September 30, 1994 4,418,722 4,418,722 Cash dividends declared (1,504,048) (1,504,048) Issuance of common stock from treasury 77,083 156,194 233,277 Three-for-two stock split in the form of a 50% stock dividend 60,000 (60,000) -- Adoption of SFAS #115 4,910,522 4,910,522 Change in unrealized gain on securities available for sale (1,714,716) (1,714,716) ------- --------- ---------- ---------- ----------- ---------- Balances, September 30, 1994 $ 180,000 $ 2,839,991 $ 39,332,747 $ 3,195,806 $ (741,862) $ 44,806,682 ======= ========= ========== ========== =========== ==========
See accompanying notes to consolidated financial statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, ------------------------- 1994 1993 ---------- ---------- Cash flows from operating activities: Net income $ 4,418,722 3,612,601 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 800,000 2,000,000 Provision for valuation of other real estate owned 319,887 756,832 Depreciation of premises and equipment 999,962 1,013,795 Amortization of net deferred loan fees and costs (589,745) (401,835) Cumulative effect of change in accounting principle -- (305,000) Gains on sales of securities available for sale (681,558) (345,844) Gains on sales of other real estate owned (298,394) (589,637) Losses (gains) on loan sales 18,541 (430,783) Proceeds from sales of loans 12,824,764 19,833,398 Loans originated for sale (9,133,806) (12,973,690) Increase in accrued interest receivable (322,858) (84,120) Increase in other assets (394,800) (1,076,417) Increase (decrease) in accrued expenses and other liabilities (338,743) 664,778 Other, net 146,877 5,513 ---------- ---------- Net cash provided by operating activities 7,768,849 11,679,591 ---------- ---------- Cash flows from investing activities: Securities available for sale: Purchases (5,434,313) (7,652,464) Proceeds from sales of equity securities 6,449,897 1,385,045 Investment securities: Purchases (6,738,381) (20,018,010) Maturities and principal repayments 7,260,281 8,986,744 Loan originations in excess of principal collected on loans (27,344,292) (22,045,962) Proceeds from sales and other reductions of other real estate owned 1,358,202 2,548,612 Purchases of premises and equipment (1,248,831) (561,027) ---------- ---------- Net cash used in investing activities (25,697,437) (37,357,062) ---------- ---------- Cash flows from financing activities: Net increase in deposits 16,137,693 21,764,187 Proceeds from Federal Home Loan Bank advances 11,051,500 6,000,000 Payments of Federal Home Loan Bank advances (12,019,106) (1,000,000) Proceeds from issuance of commmon stock from treasury 233,277 276,426 Cash dividends paid (1,351,785) (1,188,574) ---------- ---------- Net cash provided by financing activities 14,051,579 25,852,039 ---------- ---------- Net increase (decrease) in cash and cash equivalents (3,877,009) 174,568 Cash and cash equivalents at beginning of period 21,650,128 21,817,649 ---------- ---------- Cash and cash equivalents at end of period $ 17,773,119 21,992,217 ========== ========== Noncash Investing Activities: Transfers from loans to other real estate owned $ 1,507,586 1,151,706 Loans charged off 897,474 727,002 Loans made to facilitate the sale of OREO 1,089,048 2,069,750 Supplemental Disclosures: Interest payments $ 5,548,249 6,217,136 Income tax payments 2,322,787 2,212,278
See accompanying notes to consolidated financial statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 1994 AND 1993 (1) BASIS OF PRESENTATION - - -------------------------- The accounting and reporting policies of Washington Trust Bancorp, Inc. (the Corporation) are in accordance with generally accepted accounting principles and conform to general practices within the banking industry. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normally recurring accruals) necessary to present fairly the Corporation's financial position as of September 30, 1994 and 1993 and the results of operations and cash flows for the interim periods presented. The consolidated financial statements include the accounts of the Corporation and its wholly-owned subsidiary, The Washington Trust Company. All significant intercompany balances and transactions have been eliminated. Certain amounts in the 1993 consolidated financial statements have been reclassified to conform to the current reporting format. (2) INVESTMENT ACCOUNTING POLICY - - --------------------------------- Securities Available for Sale Effective January 1, 1994, the Corporation adopted Statement of Financial Accounting Standards No. 115 (SFAS #115), "Accounting for Certain Investments in Debt and Equity Securities". The Statement requires that securities available for sale be reported at fair value, with any unrealized gains and losses excluded from earnings and reported as a separate component of shareholders' equity, net of tax, until realized. The effect of adopting SFAS #115 was an increase in shareholders' equity of $4,910,522 on January 1, 1994. Securities available for sale are those which the Corporation intends to use as part of its asset/liability strategy or that may be sold as a result of changes in market conditions, changes in prepayment risk, rate fluctuations, liquidity or capital requirements. Prior to the adoption of SFAS #115, securities available for sale were carried at the lower of aggregate cost, adjusted for amortization of premium or accretion of discount, or market value. Net unrealized losses and losses on individual securities were charged to current period earnings. Investment Securities Those debt securities that the Corporation has the ability and intent to hold until maturity are classified as investment securities. Debt securities held in the investment portfolio are carried at cost, adjusted for amortization of premium and accretion of discount. (3) INCOME TAXES - - ----------------- Effective January 1, 1993, the Corporation adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" (SFAS #109). Under SFAS #109, income tax expense is determined based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The cumulative effect of adoption of SFAS #109 was an increase to income of $305,000 and was reported in the Corporation's consolidated statement of income for the nine months ended September 30, 1993. The Corporation's deferred tax asset amounted to $1,134,462 at September 30, 1994, $3,305,000 at December 31, 1993, and $3,178,000 at September 30, 1993. The Corporation recorded a significant reduction in the net deferred tax asset in connection with the adoption of SFAS #115 in the first quarter of 1994, as discussed in Note 2. (4) SECURITIES AVAILABLE FOR SALE - - --------------------------------- Securities available for sale are summarized as follows:
Amortized Unrealized Unrealized Market September 30, 1994 Cost Gains Losses Value ------------------ ---------- ---------- ---------- ---------- U.S. Treasury obligations $26,074,888 256,171 (438,839) $25,892,220 Corporate stocks 6,874,755 5,562,584 (53,572) 12,383,767 Federal Home Loan Bank stock 2,906,800 -- -- 2,906,800 ---------- ---------- --------- ---------- $35,856,443 5,818,755 (492,411) $41,182,787 ========== ========== ========= ========== Amortized Unrealized Unrealized Market September 30, 1993 Cost Gains Losses Value ------------------ ---------- ---------- ---------- ---------- U.S. Treasury obligations $25,136,554 1,374,686 -- $26,511,240 Corporate debt securities 1,000,000 -- -- 1,000,000 Corporate stocks 14,145,563 7,831,472 (55,753) 21,921,282 Federal Home Loan Bank stock 1,972,800 -- -- 1,972,800 ---------- ---------- --------- ---------- $42,254,917 9,206,158 (55,753) $51,405,322 ========== ========== ========= ==========
Included in corporate stocks at September 30, 1994 and 1993 were $3.5 million and $10.5 million, respectively, of auction rate preferred stocks. These are preferred stock instruments whose dividend rate is reset by auction every 49 days to a market rate which results in a market value of par. U.S. Treasury obligations with a carrying value of $2,991,570 and $2,996,673 were pledged to secure public deposits and for other purposes at September 30, 1994 and 1993, respectively. Proceeds from sales of corporate stocks available for sale amounted to $6,449,897 and $1,385,045 for the nine months ended September 30, 1994 and 1993, respectively. Gross gains of $681,558 and $345,844 were realized on these sales. No losses were realized on these sales. Realized gains from sales of corporate stocks were determined using the average cost method. (5) INVESTMENT SECURITIES - - -------------------------- The amortized cost and estimated market values of investment securities are summarized as follows:
Carrying Unrealized Unrealized Market September 30, 1994 Value Gains Losses Value ------------------ -------- ---------- ---------- ----------- U.S. Treasury obligations and obligations of U.S. government agencies $20,413,660 -- (689,776) $19,723,884 Mortgage-backed securities 22,321,715 -- (825,395) 21,496,320 States and political subdivisions 9,213,282 19,750 (130,657) 9,102,375 ----------- ---------- --------- ----------- $51,948,657 19,750 (1,645,828) $50,322,579 =========== ========== ========= =========== Carrying Unrealized Unrealized Market September 30, 1993 Value Gains Losses Value ------------------ -------- ---------- ---------- ----------- U.S. Treasury obligations and obligations of U.S. government agencies $18,019,328 45,623 (61,121) $18,003,830 Mortgage-backed securities 25,056,088 1,064,474 (16,422) 26,104,140 States and political subdivisions 7,035,870 105,310 (7,108) 7,134,072 ----------- ---------- --------- ----------- $50,111,286 1,215,407 (84,651) $51,242,042 =========== ========== ========= ===========
Investment securities with a carrying value of $999,780 and $999,987 were pledged to secure public deposits and for other purposes at September 30, 1994 and 1993, respectively. There were no sales or transfers of investment securities during the nine months ended September 30, 1994 and 1993. (6) LOAN PORTFOLIO - - ------------------ The following is a summary of loans: September 30, ------------------------ 1994 1993 ----------- ----------- Residential real estate: Mortgages $167,467,315 151,712,256 Homeowner construction 7,113,944 5,769,940 ----------- ----------- Total residential real estate 174,581,259 157,482,196 ----------- ----------- Commercial and other: Mortgages 52,111,522 48,124,862 Construction and development 10,963,790 11,172,730 Other 100,625,430 98,940,364 ----------- ----------- Total commercial 163,700,742 158,237,956 ----------- ----------- Installment 41,046,935 32,368,330 ----------- ----------- $379,328,936 348,088,482 =========== =========== (7) RESERVE FOR POSSIBLE LOAN LOSSES - - ------------------------------------ The following is an analysis of the reserve for possible loan losses:
Three months ended Nine months ended September 30, September 30, --------------------- ---------------------- 1994 1993 1994 1993 -------- -------- --------- --------- Balance at beginning of period $8,747,684 $8,468,075 $8,657,263 $7,342,276 Provision charged to expense 200,000 600,000 800,000 2,000,000 Recoveries 78,431 56,759 200,216 211,357 Loans charged off (266,110) (298,203) (897,474) (727,002) --------- --------- --------- --------- Balance at end of period $8,760,005 $8,826,631 $8,760,005 $8,826,631 ========= ========= ========= =========
(8) COMMON STOCK - - ---------------- The following is an analysis of the changes in common shares issued and treasury shares outstanding as a result of the three-for-two stock split paid on August 31, 1994:
1994 1993 ------------------------------- ------------------------------- Common Treasury Outstanding Common Treasury Outstanding Shares Shares Shares Shares Shares Shares ------ -------- --------- ------ -------- --------- Balance at beginning of year 1,920,000 49,670 1,870,330 1,920,000 67,788 1,852,212 Three-for-two stock split in the form of a 50% stock dividend 960,000 24,835 935,165 960,000 33,894 926,106 --------- ------- --------- --------- ------- --------- Balance at beginning of year, restated 2,880,000 74,505 2,805,495 2,880,000 101,682 2,778,318 Issuance of common stock from treasury --- 12,937 12,937 --- 21,217 21,217 --------- ------- --------- --------- ------- --------- Balance at September 30, 1994 2,880,000 61,568 2,818,432 2,880,000 80,465 2,799,535 ========= ======= ========= ========= ======= =========
Part I. Item 2. ---------------- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations - - --------------------- Net income for the three months ended September 30, 1994 amounted to $1,770,234, up 34.6% over the $1,314,873 earned in the third quarter of 1993. Earnings per share for the quarter ended September 30, 1994 amounted to $.61, up 29.8% from $.47 per share for the third quarter of 1993. Net income for the nine months ended September 30, 1994 amounted to $4,418,722, 33.6% higher than the $3,307,601 net income before accounting change recorded for the nine months ended September 30, 1993. Earnings per share for the nine months ended September 30, 1994 amounted to $1.53 compared to $1.17 per share on net income before accounting change for the comparable 1993 period. In the first quarter of 1993, the Corporation changed its method of accounting for income taxes. The cumulative effect of this change in accounting resulted in a one-time benefit of $305,000 or $.11 per share. Earnings for the nine months ended September 30, 1993, including the effect of this accounting change, amounted to $3,612,601, or $1.28 per share. On August 31, 1994, the Corporation effected a 3-for-2 stock split in the form of a 50% stock dividend. All per share amounts for 1993 have been retroactively adjusted to reflect the split. (See additional discussion of the stock split under the caption "Capital Resources".) Gains on sales of securities available for sale for the quarters ended September 30, 1994 and 1993 were $0 and $198,245, respectively. The corresponding amounts for the nine months ended September 30, 1994 and 1993 were $681,558 and $345,844. The 1994 gains were taken in connection with a nonrecurring contribution expense of approximately $700,000 recorded in the first quarter of 1994 for the establishment of a charitable trust. The provision for loan losses for the third quarter of 1994 amounted to $200,000, down from $600,000 for the third quarter of 1993. For the nine months ended September 30, 1994, the provision for loan losses was $800,000, down from the $2.0 million recorded in the same 1993 period. The reduction in the amount of the provision for loan losses is attributable to a 32.5% decline in nonperforming loans since December 31, 1993. (See "Asset Quality" for additional discussion of nonperforming loans.) Financial Condition and Liquidity - - --------------------------------- Total assets amounted to $508.7 million at September 30, 1994, up 4.3% from the September 30, 1993 balance of $487.8 million. Average assets rose 6.7% to $499.1 million for the nine months ended September 30, 1994, up from $467.9 million for the comparable 1993 period. Securities Available for Sale - As discussed in Note 2 to the Consolidated Financial Statements, the Corporation adopted SFAS #115 as of January 1, 1994. The effect of the adoption of SFAS #115 was an increase in the carrying value of the securities and a corresponding increase (net of tax) in shareholders' equity of $4,910,522. As of September 30, 1994, net unrealized gains on securities available for sale amounted to $5.3 million, the majority of which was attributable to corporate stocks. The corresponding component of shareholders' equity amounted to $3.2 million. The market value of corporate stocks available for sale amounted to $12.4 million at September 30, 1994, $9.5 million lower than the year-earlier amount. This decrease is primarily due to a $7.0 million reduction in the balance of auction rate preferred stocks which the Corporation elected to liquidate. Investment Securities - The carrying value of investment securities amounted to $51.9 million at September 30, 1994, up 3.7% from the prior year. The market value of investment securities amounted to $50.3 million at September 30, 1994. The net unrealized loss of $1.6 million results from the rise in interest rates which has occurred during 1994. (See Note 5 to the Consolidated Financial Statements for detail of unrealized gains and losses on investment securities.) Loans - Total loans amounted to $379.3 million at September 30, 1994, an increase of $31.2 million, or 9.0%, from the prior year amount of $348.1 million. All categories of loans exhibited an increase over the 1993 amount except for commercial construction loans which decreased only nominally. Residential mortgage loan demand was strong throughout 1993 and continued through the first quarter of 1994, but has leveled off subsequently with the rise in rates that has occurred in 1994. Residential mortgages amounted to $167.5 million at September 30, 1994, up from $151.7 at September 30, 1993. Adjustable rate mortgages (ARMs) continue to increase as a percent of total residential mortgages, as borrowers opt to take advantage of the attractive rates that this product offers. ARMs accounted for 38.6% of total residential mortgages outstanding at September 30, 1994 up from 31.9% of total residential mortgages at September 30, 1993. Commercial loans showed moderate growth during the first half of 1994, but demand has slowed during the third quarter of 1994. Total commercial loans amounted to $163.7 million at September 30, 1994, up 3.5% from the year-earlier balance of $158.2 million, due primarily to an increase of $4.0 million in commercial mortgages. The installment loan category experienced the largest percentage growth of all loan categories, increasing 26.8%, or $8.7 million over the September 30, 1993 amount. This increase was largely due to a home equity loan promotion conducted in 1994. Deposits and Other Borrowings - Customer deposits and other purchased liabilities are the primary sources of liquidity for the Corporation. Total deposits amounted to $439.5 million at September 30, 1994, up 3.1% from the $426.4 million reported at September 30, 1993. Time and demand deposits increased by $12.2 million and $8.8 million, respectively, while savings deposits decreased by $7.9 million or 3.9% from the September 30, 1993 amount. The change in deposit composition is attributable to the rise in interest rates that has occurred in 1994. (See discussion of cost of funds under the caption "Net Interest Income.") The Corporation utilizes advances from the Federal Home Loan Bank of Boston (FHLBB) as a funding source. FHLBB advances amounted to $19.5 million at September 30, 1994, with maturities generally less than five years. FHLBB advances were $19.0 million at September 30, 1993. Asset Quality - - ------------- Nonperforming assets are summarized in the following table: (Dollars in thousands) 09/30/94 09/30/93 12/31/93 -------- -------- -------- Nonaccrual loans 90 days or more past due $ 3,135 $ 5,949 $ 4,687 Nonaccrual loans less than 90 days past due 4,535 7,828 6,684 Accruing loans 90 days or more past due 19 60 22 -------- -------- -------- Total nonperforming loans 7,689 13,837 11,393 -------- -------- -------- Other real estate owned: In-substance foreclosures 4,455 6,576 5,055 Properties acquired through foreclosure 3,949 5,460 4,568 Valuation allowance (1,608) (2,150) (1,792) -------- -------- -------- Total other real estate owned 6,796 9,886 7,831 -------- -------- -------- Total nonperforming assets $14,485 $23,723 $19,224 ======== ======== ======== Nonperforming loans as a % of total loans 2.0% 4.0% 3.2% Nonperforming assets as a % of total assets 2.8% 4.9% 3.9% Reserve for loan losses to nonperforming loans 113.9% 63.8% 76.0% The following is an analysis of nonperforming loans by loan category: (In thousands) 09/30/94 09/30/93 12/31/93 -------- -------- -------- Residential real estate mortgages $ 3,729 $ 5,240 $ 4,775 Commercial and other: Mortgages 510 1,424 1,319 Construction and development -- -- -- Other (1) 2,863 6,184 4,677 Installment 587 989 622 -------- -------- -------- Total nonperforming loans $ 7,689 $13,837 $11,393 ======== ======== ======== (1) Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. Nonperforming assets amounted to 2.8% of total assets at September 30, 1994, down from 4.9% at September 30, 1993 and 3.9% at December 31, 1993. Nonperforming loans amounted to $7.7 million at September 30, 1994, down $6.1 million, or 44%, from the prior year due primarily to increased collection efforts by the Corporation to reduce the level of nonperforming loans. Approximately 59% of nonaccrual loans were less than 90 days past due at September 30, 1994. Nonaccrual loans less than 90 days past due have declined $2.1 million since December 31, 1993. This decrease is attributable to the reclassification of approximately $2.3 million of nonaccrual loans to accruing status during the nine months ended September 30, 1994. These loans had been performing in accordance with their contractual terms and were considered fully collectible. Payments on nonaccrual loans are recorded as a reduction of principal if full collection of the loan is doubtful, or if impairment of the collateral is identified. The balance of other real estate owned, including in-substance foreclosures, is composed of the following types of properties (in thousands): 09/30/94 09/30/93 12/31/93 Property acquired through foreclosure: -------- -------- -------- Commercial real estate $ 1,745 $ 2,200 $2,354 Residential real estate 398 783 382 Construction and development 807 696 716 Land 999 1,781 1,116 ------- ------- ------ 3,949 5,460 4,568 In-substance foreclosures: Commercial real estate 1,297 2,577 1,671 Residential real estate 2,106 2,893 1,443 Construction and development -- 511 990 Land 626 268 626 Other 426 327 325 ------- ------- ------ 4,455 6,576 5,055 Valuation allowance (1,608) (2,150) (1,792) ------- ------- ------ Total other real estate owned $ 6,796 $ 9,886 $7,831 ======= ======= ====== An analysis of the activity relating to other real estate owned, including in- substance foreclosures, follows (in thousands): 09/30/94 09/30/93 -------- -------- Balance at beginning of year $ 9,623 $15,633 Transfers from loans, net 1,499 1,152 Sales and other reductions (2,758) (4,806) Other, net 40 57 ------- ------- 8,404 12,036 Valuation allowance (1,608) (2,150) ------- ------- Balance at end of period $ 6,796 $ 9,886 ======= ======= During the nine months ended September 30, 1994 the Corporation sold property with a carrying value of approximately $1,396,000. The following is an analysis of the OREO valuation allowance (in thousands): For the nine months ended September 30, 1994 1993 - - -------------------------------------- ------ ------ Balance at beginning of period $1,792 $2,178 Provision charged to expense 320 757 Reductions attributable to sales (221) (671) Selling expenses incurred (34) (94) Other, net (249) (20) ------ ------ Balance at end of period $1,608 $2,150 ====== ====== Capital Resources - - ----------------- On July 21, 1994, the Corporation's board of directors voted to approve a 3-for-2 stock split on shares of common stock. The stock split, in the form of a stock dividend, was paid on August 31, 1994 to shareholders of record as of August 1, 1994. The par value of the common stock remained unchanged at $.0625 per share. Cash payments were made in lieu of issuing fractional shares. The cash payment for fractional shares was based on the average of the closing bid and asked prices of the common stock as reported by NASDAQ on the record date, August 1, 1994, which amounted to $34.50 per share. Total equity capital amounted to $44.8 million or 8.8% of total assets at September 30, 1994, compared to $37.6 million or 7.7% of total assets at September 30, 1993. The increase in the equity-to-assets ratio in 1994 is attributable to unrealized gains (net of income tax) on securities available for sale of $3.2 million at September 30, 1994 and approximately $3.1 million in undistributed earnings and capital contributions from the Corporation's dividend reinvestment plan. The Corporation's Tier 1 capital ratio, total risk-based capital ratio and leverage capital ratio amounted to 12.35%, 13.62% and 8.21%, respectively at September 30, 1994. The corresponding ratios for the subsidiary bank were 12.31%, 13.62% and 8.18%. A bank is considered well-capitalized if it maintains a Tier 1 capital ratio of at least 6%, a total risk-based capital ratio of 10%, and a leverage ratio of 5% or greater. The source of funds for dividends paid by the Corporation is dividends received from its subsidiary bank. The subsidiary bank is a regulated enterprise, and as such its ability to pay dividends to the parent is subject to regulatory review and restriction. During the third quarter of 1994, the Corporation declared a $.20 per share dividend, payable October 17, 1994 to shareholders of record as of October 3, 1994. This dividend represents a 20% increase over the dividend paid in the two previous quarters. The dividend rate of the previous two quarters was $.167 per share, which is adjusted for the 3-for-2 stock split paid August 31, 1994. Noninterest Income and Expense - - ------------------------------ Total noninterest income for the nine months ended September 30, 1994 amounted to $5.4 million, up 9.0% from the comparable 1993 amount. Included in noninterest income for the nine months ended September 30, 1994 were gains on sales of securities available for sale of $681,558. These securities gains were taken in connection with a nonrecurring contribution expense associated with the establishment of a charitable trust in the first quarter of 1994. Noninterest income excluding securities gains and gains (losses) on loan sales rose 13.4% over the prior year, with trust income and service charges on deposit accounts accounting for the majority of this increase. Total noninterest expense for the nine months ended September 30, 1994 amounted to $14.9 million, up 12.6% over the 1993 period. Included in the 1994 amount is a one-time charitable contribution expense of approximately $700,000 associated with the establishment of a charitable trust. Salaries and employee benefits rose 14.0% over the prior year due to increased staffing levels and normal salary adjustments, as well as higher profit sharing and incentive plan costs. Foreclosed property costs declined by 52.6% from the prior year and amounted to $261,640 for the nine months ended September 30, 1994. This decrease is primarily attributable to fewer number of properties owned and a reduction in the amount of write-downs recorded to adjust the carrying values of the properties to fair value. Noninterest income, excluding securities gains and gains on loan sales, rose $294,000, or 19.4%, over the prior year quarter. Each category of noninterest income exhibited an increase, ranging from 15% to 22%. For the three months ended September 30, 1994, total noninterest expense was 6.6% higher than the comparable 1993 period. Salaries and employee benefits amounted to $2.6 million, up 8.2% over the prior year quarter due to increased staffing levels, normal salary adjustments and higher profit sharing and incentive plan costs. Foreclosed property costs increased by approximately $81,000 in the third quarter of 1994 due primarily to gains realized on sales of properties in the third quarter of 1993 of $311,000 compared to realized gains of $5,000 in the third quarter of 1994. Average Balances/Net Interest Margin (Fully Taxable Equivalent Basis) --------------------------------------------------------------------- The following table presents average balance and interest rate information. Tax exempt income is converted to a fully taxable equivalent basis by assuming a 34% 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. 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.
Nine months ended September 30, 1994 1993 --------------------------------------------------------------------------------------------------------- Average Yield/ Average Yield/ (Dollars in thousands) Balance Interest Rate Balance Interest Rate --------------------------------------------------------------------------------------------------------- Interest-earning assets: Residential real estate $168,127 9,935 7.88% $155,369 10,350 8.88% Commercial and other 162,384 10,157 8.34% 151,251 9,368 8.26% Installment loans 36,835 2,717 9.83% 31,884 2,510 10.50% --------------------------------------------------------------------------------------------------------- Total loans 367,346 22,809 8.28% 338,504 22,228 8.76% Federal funds sold 6,963 192 3.68% 11,427 240 2.81% Taxable securities 77,378 3,837 6.61% 72,181 3,687 6.81% Nontaxable securities 8,368 396 6.31% 6,544 328 6.67% --------------------------------------------------------------------------------------------------------- Total interest-earning assets 460,055 27,234 7.89% 428,656 26,483 8.24% Non interest-earning assets 39,078 39,268 --------------------------------------------------------------------------------------------------------- Total assets $499,133 $467,924 ========================================================================================================= Interest-bearing liabilities: Savings deposits $196,481 3,225 2.19% $195,147 3,808 2.60% Time deposits 181,896 5,780 4.24% 175,579 6,129 4.65% Other 24,945 1,036 5.54% 18,652 814 5.82% --------------------------------------------------------------------------------------------------------- Total interest-bearing liabilities 403,322 10,041 3.32% 389,378 10,751 3.68% Non interest-bearing liabilities 51,811 41,979 --------------------------------------------------------------------------------------------------------- Total liabilities 455,133 431,357 Total shareholders' equity 44,000 36,567 --------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $499,133 $467,924 ========================================================================================================= Net interest income / interest rate spread $17,193 4.57% $15,732 4.56% ========================================================================================================= Net interest margin 4.98% 4.89% ========================================================================================================= Interest income amounts for the nine months ended September 30, 1994 and 1993 presented in the table above include the following adjustments for taxable equivalency (in thousands): 1994 1993 ---- ---- Commercial and other loans $ 65 $ 73 Nontaxable debt securities 140 117 Corporate stocks 151 237
Net Interest Income - - ------------------- (The schedule entitled "Average Balances/Net Interest Margin (Fully Taxable Equivalent Basis)" should be read in conjunction with this discussion.) Fully taxable equivalent (FTE) net interest income for the nine months ended September 30, 1994 amounted to $17.2 million, an increase of 9.3% over the $15.7 million earned for the corresponding 1993 period. This increase resulted from a rise in average interest-earning assets of 7.3% over the prior year, while average interest-bearing liabilities rose by only 3.6%. The increase in average loans of 8.5% over the prior year represented most of the increase in earning assets. The net interest margin (net interest income as a percent of average interest-earning assets) amounted to 4.98% and 4.89% at September 30, 1994 and 1993, respectively. The FTE interest rate spread amounted to 4.57% for the nine months ended September 30, 1994, relatively unchanged from the prior year. The FTE yield on total loans amounted to 8.28% for the nine months ended September 30, 1994, compared to 8.76% for the comparable 1993 period. The residential mortgage portfolio has experienced the most significant decline in yield due to the large volume of refinancings that occurred during the latter half of 1993 as well as an increase in the balance of adjustable rate mortgages. The yield on total residential mortgages was 7.88% for the nine months ended September 30, 1994, down from 8.88% for the same 1993 period. Demand for fixed rate mortgage refinancings has slowed in 1994. However, demand for adjustable rate mortgages (ARMs) was strong in the first half of 1994, and ARMs continue to be popular due to the recent rise in interest rates. Average ARMs represented 36.2% of total average residential mortgages at September 30, 1994, compared to 26.0% in the prior year. The rate of interest charged on this product in the initial year is generally lower than that charged on fixed rate mortgages. The yield on average ARMs amounted to 6.77% for the nine months ended September 30, 1994 compared to 8.51% for fixed rate mortgages. For the corresponding 1993 period, ARMs yielded 6.72% and fixed rate mortgages yielded 9.64%. The yield on ARMs has increased in each quarter of 1994 as a result of the rise in interest rates. The yield on ARMs is expected to rise in the fourth quarter of 1994 as well, as 23% of the balance of ARM portfolio outstandings are scheduled to reprice during this period. Average interest-bearing liabilities amounted to $403.3 million at September 30, 1994, up 3.6% over the prior year. The overall cost of funds on interest- bearing liabilities amounted to 3.32% for the nine months ended September 30, 1994, down 36 basis points from the 3.68% reported for the comparable 1993 period. This compares to a cost of funds for the six months ended June 30, 1994 of 3.30%. Based on the current level of interest rates and anticipated rate increases, the Corporation's cost of funds is expected to increase. The rates paid on both savings and time deposits decreased 41 basis points from the prior year, while their average balances increased slightly. Average demand deposits for the nine months ended September 30, 1994 rose 24% over the prior year level. This favorably affected the net interest margin because these deposits are noninterest-bearing sources of funds that can be used to invest in interest- earning assets. Average Federal Home Loan Bank (FHLB) advances for the nine months ended September 30, 1994 and 1993 amounted to $23.1 million and $18.3 million, respectively. The additional advances in 1994 were used in part to fund loan demand. The average rates of interest paid on FHLB advances were 5.66% and 5.86% for the nine months ended September 30, 1994 and 1993, respectively. For the quarter ended September 30, 1994, the Corporation's FTE interest rate spread amounted to 4.71%, up from the third quarter of 1993 amount of 4.58%. The net interest margin increased to 5.16% for the third quarter of 1994, up from 4.94% for the prior year quarter. The FTE rate of return on interest- earning assets amounted to 8.06% for the quarter ended September 30, 1994, down slightly from the prior year quarter primarily due to the lower yield on fixed rate residential mortgages. Yields on loans whose rate of interest varies with the prime rate, i.e. commercial loans and certain consumer loans, rose in the third quarter of 1994, reflecting increases in the prime rate earlier in 1994. The Corporation's cost of funds for the quarter ended September 30, 1994 was 3.35%, up from 3.31% for the second quarter of 1994 and 3.30% for the first quarter of 1994. This compares to an average cost of funds rate of 3.51% for the third quarter of 1993. The rate of interest paid on savings deposits amounted to 2.23%, down from 2.35% in the prior year quarter. The cost of time deposits declined by 34 basis points, to 4.25% for the third quarter of 1994. Included in other interest-bearing liabilities are average advances from the Federal Home Loan Bank of Boston amounting to $22.0 million. The rate paid on these advances was 5.88% for the quarter ended September 30, 1994. Corresponding amounts for the 1993 quarter were $19.3 million and 5.88%. In May 1994, the Corporation entered into interest rate swap agreements with a total notional principal amount of $10 million. Under the agreements, the Corporation pays a quarterly-resetting rate on the notional balance while receiving a fixed rate over the life of the swaps. The swaps were executed in conjunction with a promotional term deposit program. The purpose of the swaps is to convert the fixed rate paid on the promotional term deposits to a quarterly-resetting rate based on 3-month LIBOR. The notional balance of these agreements is not included in the Corporation's Consolidated Balance Sheets and the interest differential was not significant. Recent Accounting Developments - - ------------------------------ In May 1993 the Financial Accounting Standards Board issued Statement No. 114, "Accounting by Creditors for Impairment of a Loan", which was amended in October 1994 by Statement No. 118, "Accounting by Creditors for Impairment of a Loan - Income Recognition and Disclosures." These statements are effective for fiscal years beginning after December 15, 1994. The statements establish accounting standards for measuring impairment on loans for which it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Statement No. 114 requires impairment to be measured on a discounted cash flow method, or at the loan's observable market price, or at the fair value of the collateral if the loan is collateral dependent. This statement also narrows the definition of in-substance foreclosures. Accordingly, many of the loans currently accounted for as in-substance foreclosures will be treated as impaired loans under these new guidelines. The adoption of Statements No. 114 and 118 is not expected to have a material impact on the Corporation's financial condition or results of operations. In October 1994, the Financial Accounting Standards Board issued Statement No. 119, "Disclosures about Derivative Financial Instruments and Fair Value of Financial Instruments", which is effective for fiscal years beginning after December 15, 1994. This statement requires disclosures about derivative financial instruments including futures, forward, swap and option contracts, as well as other financial instruments with similar characteristics. PART II OTHER INFORMATION ----------------- Item 1. Legal Proceedings - - ------ ----------------- None Item 2. Changes in Securities - - ------ --------------------- None Item 3. Defaults upon Senior Securities - - ------ ------------------------------- None Item 4. Submission of Matters to a Vote of Security Holders - - ------ --------------------------------------------------- None Item 5. Other Information - - ------ ----------------- None Item 6. Exhibits and Reports on Form 8-K - - ------ -------------------------------- (a) Exhibit index Exhibit No. ----------- 11 Statement re Computation of Earnings Per Share 27 Financial Data Schedules (b) The following report on Form 8-K was filed during the quarter ended September 30, 1994: On July 25, 1994 a Form 8-K was filed which reported the declaration of a 3-for-2 stock split on shares of common stock. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. WASHINGTON TRUST BANCORP, INC. ------------------------------ (Registrant) November 14, 1994 By: Joseph J. Kirby -------------------------------- Joseph J. Kirby President November 14, 1994 By: Joseph H. Potter -------------------------------- Joseph H. Potter Executive Vice President November 14, 1994 By: David V. Devault -------------------------------- David V. Devault Vice President and Chief Financial Officer (Principal Accounting Officer) EX-11 2 Exhibit 11 Washington Trust Bancorp, Inc. Computation of Primary and Fully Diluted Earnings Per Share For the Three and Nine Months Ended September 30, 1994 and 1993
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 1994 1993 1994 1993 ---- ---- ---- ---- Primary: Weighted average shares 2,818,470 2,798,519 2,815,273 2,794,755 Common stock equivalents 72,359 20,843 49,577 12,638 --------- --------- --------- --------- Primary weighted average shares 2,890,829 2,819,362 2,864,850 2,807,393 ========= ========= ========= ========= Fully diluted: Weighted average shares 2,818,470 2,798,519 2,815,273 2,794,756 Common stock equivalents 75,050 26,344 74,561 26,344 --------- --------- --------- --------- Fully diluted weighted average shares 2,893,520 2,824,863 2,889,834 2,821,100 ========= ========= ========= ========= Income before cumulative effect of accounting change $1,770,234 $1,314,873 $4,418,722 $3,307,601 Cumulative effect of change in accounting for income taxes -- -- -- 305,000 --------- --------- --------- --------- Net income $1,770,234 $1,314,873 $4,418,722 $3,612,601 ========= ========= ========= ========= Primary earnings per share: Income before cumulative effect of accounting change $ .61 $ .47 $ 1.54 $ 1.18 Cumulative effect of change in accounting for income taxes -- -- -- .11 ------ ------ ------ ------ Net income $ .61 $ .47 $ 1.54 $ 1.29 ====== ====== ====== ====== Fully diluted earnings per share: Income before cumulative effect of accounting change $ .61 $ .47 $ 1.53 $ 1.17 Cumulative effect of change in accounting for income taxes -- -- -- .11 ------ ------ ------ ------ Net income $ .61 $ .47 $ 1.53 $ 1.28 ====== ====== ====== ======
EX-27 3
9 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES THERETO OF WASHINGTON TRUST BANCORP, INC. AS OF SEPTEMBER 30, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1994 SEP-30-1994 13,960,976 0 3,812,143 0 41,182,787 51,948,657 50,322,579 379,328,936 8,760,005 508,656,188 439,512,313 0 4,804,799 19,532,394 180,000 0 0 44,626,682 508,656,188 22,744,533 3,941,541 192,330 26,878,404 9,005,277 10,041,345 16,837,059 800,000 681,558 14,898,942 6,521,722 6,521,722 0 0 4,418,722 1.54 1.53 0 0 0 0 0 0 0 0 0 0 0 0 -----END PRIVACY-ENHANCED MESSAGE-----