-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Dq65tkewPCcKWNSn4L+ur23/QIz461eGty8gWyA9CU1XWzw2czfB4iuRXGfK06ti vUCl7u7mBlLuMv81ucvbwg== /in/edgar/work/20000809/0000737468-00-000012/0000737468-00-000012.txt : 20000921 0000737468-00-000012.hdr.sgml : 20000921 ACCESSION NUMBER: 0000737468-00-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000809 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: SEC FILE NUMBER: 000-13091 FILM NUMBER: 689630 BUSINESS ADDRESS: STREET 1: 23 BROAD ST CITY: WESTERLY STATE: RI ZIP: 02891 BUSINESS PHONE: 4013481200 10-Q 1 0001.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) [X] Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended JUNE 30, 2000 or [ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 000-13091 ------------------------------------- WASHINGTON TRUST BANCORP, INC. (Exact name of registrant as specified in its charter) ------------------------------------- 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) (401) 348-1200 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the 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 The number of shares of common stock of the registrant outstanding as of July 31, 2000 was 11,991,253. Page 1 FORM 10-Q WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY For The Quarter Ended June 30, 2000 TABLE OF CONTENTS PART I. Financial Information Item 1. Financial Statements Consolidated Balance Sheets June 30, 2000 and December 31, 1999 Consolidated Statements of Income Three Months and Six Months Ended June 30, 2000 and 1999 Consolidated Statements of Changes in Shareholders' Equity Six Months Ended June 30, 2000 and 1999 Consolidated Statements of Cash Flows Six Months Ended June 30, 2000 and 1999 Condensed Notes to Consolidated Financial Statements Independent Auditors' Review Report Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk PART II. Other Information Signatures This report contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Corporation's actual results could differ materially from those projected in the forward-looking statements as a result, among other factors, of changes in general national or regional economic conditions, changes in interest rates, reductions in deposit levels necessitating increased borrowing to fund loans and investments, changes in the size and nature of the Corporation's competition, changes in loan default and charge-off rates, and changes in the assumptions used in making such forward-looking statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY (Dollars in thousands) CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, 2000 1999 - -------------------------------------------------------------------------------- Assets: Cash and due from banks $21,168 $27,091 Federal funds sold and other short-term investments 17,900 17,429 Mortgage loans held for sale 1,068 1,647 Securities: Available for sale, at fair value 376,752 330,431 Held to maturity, at cost; fair value $120,765 in 2000 and $112,868 in 1999 124,383 116,372 - -------------------------------------------------------------------------------- Total securities 501,135 446,803 Federal Home Loan Bank stock, at cost 19,558 17,627 Loans 573,929 549,025 Less allowance for loan losses 12,923 12,349 - -------------------------------------------------------------------------------- Net loans 561,006 536,676 Premises and equipment, net 22,603 23,442 Accrued interest receivable 7,495 6,010 Other assets 29,159 28,880 - -------------------------------------------------------------------------------- Total assets $1,181,092 $1,105,605 - -------------------------------------------------------------------------------- Liabilities: Deposits: Demand $109,937 $102,384 Savings 238,869 235,395 Time 351,184 322,974 - -------------------------------------------------------------------------------- Total deposits 699,990 660,753 Dividends payable 1,441 1,202 Short-term borrowings 5,428 4,209 Federal Home Loan Bank advances 386,448 352,548 Accrued expenses and other liabilities 8,687 8,727 - -------------------------------------------------------------------------------- Total liabilities 1,101,994 1,027,439 - -------------------------------------------------------------------------------- Shareholders' Equity: Common stock of $.0625 par value; authorized 30 million shares; issued 11,989,566 shares in 2000 and 11,925,571 shares in 1999 750 745 Paid-in capital 10,010 9,926 Retained earnings 69,760 67,686 Accumulated other comprehensive loss (1,422) (191) - -------------------------------------------------------------------------------- Total shareholders' equity 79,098 78,166 - -------------------------------------------------------------------------------- Total liabilities and shareholders' equity $1,181,092 $1,105,605 - -------------------------------------------------------------------------------- The accompanying notes are an integral part of these consolidated financial statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY (Dollars in thousands, CONSOLIDATED STATEMENTS OF INCOME except per share data)
(Unaudited) Three Months Six Months -------------------------------------------- Periods ended June 30, 2000 1999 2000 1999 - --------------------------------------------------------------------------------------------------------------------- Interest income: Interest and fees on loans $12,132 $11,078 $23,781 $21,886 Interest on securities 7,898 6,207 15,306 12,316 Dividends on corporate stock and Federal Home Loan Bank stock 670 518 1,341 1,052 Interest on federal funds sold and other short-term investments 218 128 378 288 - --------------------------------------------------------------------------------------------------------------------- Total interest income 20,918 17,931 40,806 35,542 - --------------------------------------------------------------------------------------------------------------------- Interest expense: Savings deposits 998 1,004 1,995 1,950 Time deposits 4,778 3,945 9,227 7,833 Federal Home Loan Bank advances 5,772 4,027 11,023 7,872 Other 41 254 64 475 - --------------------------------------------------------------------------------------------------------------------- Total interest expense 11,589 9,230 22,309 18,130 - --------------------------------------------------------------------------------------------------------------------- Net interest income 9,329 8,701 18,497 17,412 Provision for loan losses 350 458 700 940 - --------------------------------------------------------------------------------------------------------------------- Net interest income after provision for loan losses 8,979 8,243 17,797 16,472 - --------------------------------------------------------------------------------------------------------------------- Noninterest income: Trust and investment management 2,805 2,322 5,319 4,564 Service charges on deposit accounts 806 794 1,602 1,552 Merchant processing fees 536 393 808 642 Mortgage banking activities 134 378 256 876 Income from bank-owned life insurance 259 196 501 196 Net gains on sales of securities 374 122 758 383 Other income 240 478 671 838 - --------------------------------------------------------------------------------------------------------------------- Total noninterest income 5,154 4,683 9,915 9,051 - --------------------------------------------------------------------------------------------------------------------- Noninterest expense: Salaries and employee benefits 5,050 4,552 10,005 8,992 Net occupancy 630 624 1,265 1,225 Equipment 937 792 1,737 1,533 Legal, audit and professional fees 405 258 883 474 Advertising and promotion 348 328 706 523 Merchant processing costs 421 299 646 458 Office supplies 185 171 358 342 Acquisition related expenses 1,035 - 1,035 - Other 1,422 1,313 2,707 3,009 - --------------------------------------------------------------------------------------------------------------------- Total noninterest expense 10,433 8,337 19,342 16,556 - --------------------------------------------------------------------------------------------------------------------- Income before income taxes 3,700 4,589 8,370 8,967 Income tax expense 1,308 1,244 2,546 2,449 - --------------------------------------------------------------------------------------------------------------------- Net income $2,392 $3,345 $5,824 $6,518 - --------------------------------------------------------------------------------------------------------------------- Per share information: Basic earnings per share $.20 $.28 $.49 $.55 Diluted earnings per share $.20 $.28 $.48 $.54 Cash dividends declared per share $.12 $.11 $.24 $.22
The accompanying notes are an integral part of these consolidated financial statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY (Dollars in thousands) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)
Accumulated Other Common Paid-in Retained Comprehensive Treasury Six months ended June 30, Stock Capital Earnings Income (Loss) Stock Total - ---------------------------------------------------------------------------------------------------------------------- Balance at January 1, 2000 $745 $9,926 $67,686 $(191) $- $78,166 Net income 5,824 5,824 Other comprehensive loss net of tax: Net unrealized losses on securities, net of reclassification adjustment (1,231) (1,231) -------- Comprehensive income 4,593 Cash dividends declared (3,750) (3,750) Shares issued 5 84 89 - ---------------------------------------------------------------------------------------------------------------------- Balance at June 30, 2000 $750 $10,010 $69,760 $(1,422) $- $79,098 - ---------------------------------------------------------------------------------------------------------------------- Balance at January 1, 1999 $737 $8,986 $61,581 $7,401 $(354) $78,351 Net income 6,518 6,518 Other comprehensive loss net of tax: Net unrealized gains on securities, net of reclassification adjustment (2,957) (2,957) -------- Comprehensive income 3,561 Cash dividends declared (3,127) (3,127) Shares issued 8 1,074 1,082 Shares repurchased (24) (24) - ---------------------------------------------------------------------------------------------------------------------- Balance at June 30, 1999 $745 $10,060 $64,972 $4,444 $(378) $79,843 - ----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated financial statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY (Dollars in thousands) CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 30, 2000 1999 - -------------------------------------------------------------------------------- Cash flows from operating activities: Net income $5,824 $6,518 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 700 940 Depreciation of premises and equipment 1,589 1,500 Amortization of premium in excess of accretion of discount on debt securities (47) 283 Net gains on sales of securities (758) (383) Net gains on loan sales (143) (481) Proceeds from sales of loans 6,520 33,275 Loans originated for sale (5,847) (30,894) Increase in accrued interest receivable (1,485) (338) Decrease (increase) in other assets 567 (986) Decrease in accrued expenses and other liabilities (40) (661) Other, net (84) (24) - -------------------------------------------------------------------------------- Net cash provided by operating activities 6,796 8,749 - -------------------------------------------------------------------------------- Cash flows from investing activities: Securities available for sale: Purchases (89,589) (84,012) Proceeds from sales 25,375 16,175 Maturities and principal repayments 16,766 35,672 Securities held to maturity: Purchases (14,900) (31,477) Maturities and principal repayments 6,897 22,210 Purchase of Federal Home Loan Bank stock (1,931) (58) Principal collected on loans under loan originations (25,118) (30,301) Proceeds from sales of other real estate owned 68 196 Purchases of premises and equipment (750) (1,562) Purchase of bank-owned life insurance - (18,000) - -------------------------------------------------------------------------------- Net cash used in investing activities (83,182) (91,157) - -------------------------------------------------------------------------------- Cash flows from financing activities: Net increase in deposits 39,237 25,202 Net increase in other short-term borrowings 1,219 4,629 Proceeds from Federal Home Loan Bank advances 249,500 293,336 Repayment of Federal Home Loan Bank advances (215,600) (240,549) Proceeds from issuance of common stock 89 1,082 Purchase of treasury stock - (24) Cash dividends paid (3,511) (3,018) - -------------------------------------------------------------------------------- Net cash provided by financing activities 70,934 80,658 - -------------------------------------------------------------------------------- Net decrease in cash and cash equivalents (5,452) (1,750) Cash and cash equivalents at beginning of year 44,520 34,654 - -------------------------------------------------------------------------------- Cash and cash equivalents at end of period $39,068 $32,904 - -------------------------------------------------------------------------------- (Continued) WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) Six months ended June 30, 2000 1999 - -------------------------------------------------------------------------------- Noncash Investing and Financing Activities: Net transfers from loans to other real estate owned (OREO) $106 $301 Loans charged off 384 431 Loans made to facilitate the sale of OREO 60 144 Decrease in net unrealized gain on securities available for sale (1,231) (2,957) Supplemental Disclosures: Interest payments 21,715 17,796 Income tax payments 2,854 2,406 The accompanying notes are an integral part of these consolidated financial statements. WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARY (Dollars in thousands) CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) Basis of Presentation The accounting and reporting policies of Washington Trust Bancorp, Inc. and subsidiary (the "Corporation") are in accordance with generally accepted accounting principles and conform to general practices of the banking industry. In the opinion of management, the accompanying consolidated financial statements present fairly the Corporation's financial position as of June 30, 2000 and December 31, 1999 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. On June 26, 2000, the Corporation completed its acquisition of Phoenix Investment Management Company, Inc. of Providence, Rhode Island. Phoenix, an independent investment advisory firm, had assets under management of approximately $750 million at June 26, 2000. The acquisition was accounted for under the pooling of interests method and accordingly, the consolidated financial statements of the Corporation have been restated to reflect the acquisition at the beginning of each period presented. The unaudited consolidated financial statements of the Corporation presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. The Corporation has not changed its accounting and reporting policies from those disclosed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 1999. (2) Securities Available for Sale
Securities available for sale are summarized as follows: Amortized Unrealized Unrealized Fair Cost Gains Losses Value - --------------------------------------------------------------------------------------------------------------------- June 30, 2000 U.S. Treasury obligations and obligations of U.S. government-sponsored agencies $ 95,516 $317 $(1,331) $ 94,502 Mortgage-backed securities 227,870 337 (3,183) 225,024 Corporate bonds 40,223 28 (1,114) 39,137 Corporate stocks 14,326 4,912 (1,149) 18,089 - --------------------------------------------------------------------------------------------------------------------- Total 377,935 5,594 (6,777) 376,752 - --------------------------------------------------------------------------------------------------------------------- December 31, 1999 U.S. Treasury obligations and obligations of U.S. government-sponsored agencies 87,558 347 (1,595) 86,310 Mortgage-backed securities 191,934 70 (2,918) 189,086 Corporate bonds 34,364 31 (711) 33,684 Corporate stocks 15,833 6,582 (1,064) 21,351 - --------------------------------------------------------------------------------------------------------------------- Total $329,689 $7,030 $(6,288) $330,431 - --------------------------------------------------------------------------------------------------------------------- Securities available for sale with a fair value of $63.8 million and $47.2 million were pledged to secure Treasury Tax and Loan deposits, borrowings and public deposits at June 30, 2000 and December 31, 1999, respectively. For the six months ended June 30, 2000, proceeds from sales of securities available for sale amounted to $25.4 million while net realized gains on these sales amounted to $758 thousand.
(3) Securities Held to Maturity
The amortized cost and fair value of securities held to maturity are summarized as follows: Amortized Unrealized Unrealized Fair Cost Gains Losses Value - --------------------------------------------------------------------------------------------------------------------- June 30, 2000 U.S. Treasury obligations and obligations of U.S. government-sponsored agencies $ 33,635 $8 $(954) $ 32,689 Mortgage-backed securities 65,316 32 (2,249) 63,099 States and political subdivisions 25,432 7 (462) 24,977 - --------------------------------------------------------------------------------------------------------------------- Total 124,383 47 (3,665) 120,765 - --------------------------------------------------------------------------------------------------------------------- December 31, 1999 U.S. Treasury obligations and obligations of U.S. government-sponsored agencies 28,231 - (895) 27,336 Mortgage-backed securities 62,209 54 (2,189) 60,074 States and political subdivisions 25,932 23 (497) 25,458 - --------------------------------------------------------------------------------------------------------------------- Total $116,372 $77 $(3,581) $112,868 - --------------------------------------------------------------------------------------------------------------------- There were no sales or transfers of securities held to maturity during the six months ended June 30, 2000.
(4) Loan Portfolio The following is a summary of loans: June 30, December 31, 2000 1999 - -------------------------------------------------------------------------------- Commercial: Mortgages $116,384 $113,719 Construction and development 1,146 2,902 Other (1) 113,454 115,739 - -------------------------------------------------------------------------------- Total commercial 230,984 232,360 Residential real estate: Mortgages 228,126 212,719 Homeowner construction 14,483 12,995 - -------------------------------------------------------------------------------- Total residential real estate 242,609 225,714 Consumer 100,336 90,951 - -------------------------------------------------------------------------------- Total loans $573,929 $549,025 - -------------------------------------------------------------------------------- (1) Loans to businesses and individuals, a substantial portion of which is fully or partially collateralized by real estate (5) Allowance For Loan Losses The following is an analysis of the allowance for loan losses: Three Months Six Months --------------------------------------------- Periods ended June 30, 2000 1999 2000 1999 - -------------------------------------------------------------------------------- Balance at beginning of period $12,540 $11,333 $12,349 $10,966 Provision charged to expense 350 458 700 940 Recoveries 180 250 258 295 Loans charged off (147) (271) (384) (431) - -------------------------------------------------------------------------------- Balance at end of period $12,923 $11,770 $12,923 $11,770 - -------------------------------------------------------------------------------- INDEPENDENT AUDITORS' REVIEW REPORT The Board of Directors and Shareholders Washington Trust Bancorp, Inc.: We have reviewed the consolidated balance sheet of Washington Trust Bancorp, Inc. and subsidiary (the "Corporation") as of June 30, 2000, and the related consolidated statements of income for the three-month and six-month periods ended June 30, 2000 and 1999, and the changes in shareholders' equity and cash flows for the six-month periods ended June 30, 2000 and 1999. These consolidated financial statements are the responsibility of the Corporation's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with generally accepted accounting principles. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 1999, is fairly stated, in all material respects. KPMG LLP Providence, Rhode Island July 20, 2000 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations The Corporation reported net income of $2.4 million, or $.20 per diluted share, for the three months ended June 30, 2000. Net income for the second quarter of 1999 amounted to $3.3 million, or $.28 per diluted share. In the second quarter of 2000, the Corporation completed the acquisition of Phoenix Investment Management Company, Inc., which was accounted for under the pooling of interests method. Accordingly, the consolidated financial statements for the Corporation have been restated to reflect the acquisition at the beginning of each period presented. Second quarter 2000 results included one-time acquisition-related expenses of $1.1 million, including related income taxes. Results excluding these nonrecurring costs and including a pro forma tax provision for pre-acquisition earnings of Phoenix, which operated as a sub-S corporation prior to the acquisition, are referred to herein as "operating". Operating earnings for the three months ended June 30, 2000 amounted to $3.3 million, or $.27 per diluted share, an increase of 4.3% from the $3.1 million, or $.26 per diluted share, earned in the three months ended June 30, 1999. The Corporation's rates of return on average assets and average equity for the second quarter of 2000, on an operating basis, were 1.14% and 16.47%, respectively. Comparable amounts for the second quarter of 1999 were 1.20% and 15.70%. Operating earnings for the six months ended June 30, 2000 amounted to $6.5 million, an increase of 5.9% from $6.2 million reported for the same 1999 period. Diluted earnings per share for the six months ended June 30, 2000, on an operating basis, amounted to $.54, up from $.51 per share earned in the six months ended June 30, 1999. The Corporation's rates of return on average assets and average equity for the six months ended June 30, 2000, on an operating basis, were 1.15% and 16.42%, respectively. Comparable amounts for the 1999 period were 1.19% and 15.44%. For the second quarter of 2000, net interest income (the difference between interest earned on loans and investments and interest paid on deposits and other borrowings) amounted to $9.3 million, an increase of 7.2% from the $8.7 million reported for second quarter of 1999. Net interest income for the six months ended June 30, 2000 rose 6.2% over the corresponding 1999 period. This increase was primarily attributable to growth in interest-earning assets. (See additional discussion under the caption "Net Interest Income".) The Corporation's provision for loan losses was $350 thousand and $458 thousand in the second quarter of 2000 and 1999, respectively. For the six months ended June 30, 2000 and 1999, the provision for loan losses amounted to $700 thousand and $940 thousand, respectively. Other noninterest income (noninterest income excluding net gains on sales of securities) amounted to $4.8 million for the quarter ended June 30, 2000, up 4.8% from the corresponding 1999 period. For the six months ended June 30, 2000, other noninterest income amounted to $9.2 million, up 5.6% from the same 1999 period. The increase was primarily due to growth in revenues for trust and investment management services and income from bank-owned life insurance ("BOLI"), offset in part by a decline in revenue from mortgage banking activities. Trust and investment management revenue totaled $5.3 million for the six months ended June 30, 2000, up 16.5% from the same 1999 period due primarily to an increase in assets under management. During the second quarter of 1999, the Corporation purchased BOLI as a financing tool for employee benefits. Revenue from mortgage banking activities associated with the originations of loans for the secondary market amounted to $256 thousand for the six months ended June 30, 2000, a decrease of 70.8% from the $876 thousand reported for the same 1999 period. Due to rising interest rates, mortgage refinancing activity has decreased, resulting in a decline of loans sold in the secondary market. Net realized securities gains for the three months ended June 30, 2000 amounted to $374 thousand, including $310 thousand related to a contribution of appreciated equity securities to the Corporation's charitable foundation. The cost of this contribution amounted to approximately $424 thousand and was included in noninterest expenses in the second quarter of 2000. For the three months ended June 30, 1999, net realized securities gains totaled $122 thousand. Net realized securities gains for the six months ended June 30, 2000 and 1999 amounted to $758 thousand and $383 thousand, respectively. For the quarter ended June 30, 2000, total operating noninterest expense (total noninterest expense excluding one-time acquisition-related expenses of $1.0 million) amounted to $9.4 million, an increase of 12.7% from the corresponding 1999 amount. Total operating noninterest expense for the six months ended June 30, 2000 amounted to $18.3 million, an increase of 10.6% over the comparable 1999 amount. The increase was primarily attributable to higher salaries and benefits expense, increases in legal, audit and professional fees, higher equipment costs, and increases in advertising and promotion costs. For the six months ended June 30, 2000, legal, audit and professional fees totaled $883 thousand, up $409 thousand from the corresponding 1999 period. The increase was primarily due to legal costs associated with an ongoing litigation matter. These costs are expected to continue through the third quarter of 2000. At this time, management of the Corporation is not able to determine whether such costs will continue beyond the third quarter. Net Interest Income (The accompanying schedule entitled "Average Balances / Net Interest Margin - Fully Taxable Equivalent Basis (FTE)" should be read in conjunction with this discussion.) FTE net interest income for the six months ended June 30, 2000 amounted to $19.1 million, up 6.0% over the same 1999 period due primarily to growth in interest-earning assets. For the six months ended June 30, 2000, average interest-earning assets amounted to $1.072 billion, up $101.8 million, or 10.5%, over the comparable 1999 amount due to growth in both the securities portfolio and in total loans. This growth in securities and loans was funded by Federal Home Loan Bank ("FHLB") advances and to a lesser extent, deposit growth. The net interest margins (FTE net interest income as a percentage of average interest-earning assets) for the six months ended June 30, 2000 and 1999 were 3.58% and 3.74%, respectively. The interest rate spread declined 20 basis points to 3.03% for the first half of 2000. Earning asset yields rose 25 basis points, while the cost of interest-bearing liabilities increased 45 basis points, thereby narrowing the net interest spread. Higher funding costs associated with time deposits and FHLB advances were primarily responsible for the decrease in the net interest margin. Total average securities rose $56.5 million, or 12.3%, over the comparable prior year period, mainly due to purchases of taxable debt securities. The FTE rate of return on securities was 6.84% for the six months ended June 30, 2000, up from 6.22% for the same 1999 period. The increase in yields reflects higher marginal rates on investment purchases. The yield on average total loans amounted to 8.62% for the six months ended June 30, 2000, compared to 8.66% in the comparable 1999 period. Average loans for the six months ended June 30, 2000 rose $45.3 million, or 8.9%, over the prior year and amounted to $556.3 million. Average residential real estate loans amounted to $232.3 million, up 10.4% from the prior year level. The yield on residential real estate loans declined 10 basis points from the prior year, amounting to 7.79%. The decrease in yield on residential real estate loans resulted from 1999 mortgage refinancing activity. Average commercial loans rose 8.3% to $229.8 million. The yield on commercial loans amounted to 9.38%, down from the prior year yield of 9.44%. Average consumer loans rose 6.7% over the prior year. The yield on consumer loans amounted to 8.81%, an increase of 16 basis points from the prior year yield of 8.65%. As a result of higher levels of FHLB advances and increases in time and savings deposits, average interest-bearing liabilities increased 11.0% to $948.5 million at June 30, 2000. Due to higher rates paid on both borrowed funds and time deposits, the Corporation's total cost of funds on interest-bearing liabilities amounted to 4.73% for the six months ended June 30, 2000, up from 4.28% for the comparable 1999 period. Average FHLB advances for the six months ended June 30, 2000 amounted to $370.9 million, up 25.0% from the $296.7 million average balance for the same 1999 period. The average rate paid on FHLB advances for the six months ended June 30, 2000 was 5.98%, an increase of 63 basis points from the prior year rate. Average time deposits increased $26.1 million to $343.3 million with an increase of 43 basis points in the rate paid. Average savings deposits for the six months ended June 30, 2000 increased 4.8% to $232.0 million from the comparable 1999 amount. The rate paid on these deposits for the first six months of 2000 was 1.73%, unchanged from the same 1999 period. For the six months ended June 30, 2000, average demand deposits, an interest-free funding source, were up by $9.4 million, or 10.5%, from the same prior year period. Average Balances / Net Interest Margin - Fully Taxable Equivalent Basis The following table sets forth average balance and interest rate information. Income is presented on a fully taxable equivalent basis (FTE). For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Loans held for sale, 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. Customer overdrafts are excluded from amounts presented for loans. Average balances for securities are presented at cost, with any unrealized gains and losses of securities available for sale included in noninterest-earning assets.
Six months ended June 30, 2000 1999 - ------------------------------------------------------------------------------------------------------------------- Average Yield/ Average Yield/ (Dollars in thousands) Balance Interest Rate Balance Interest Rate - ------------------------------------------------------------------------------- ------------------------------------ Assets: Residential real estate loans $232,348 $8,999 7.79% $210,504 $8,234 7.89% Commercial and other loans 229,829 10,719 9.38% 212,294 9,936 9.44% Consumer loans 94,124 4,124 8.81% 88,221 3,782 8.65% - -------------------------------------------------------------------------------------------------------------------- Total loans 556,301 23,842 8.62% 511,019 21,952 8.66% Federal funds sold and other short-term investments 12,555 378 6.06% 12,399 288 4.68% Taxable debt securities 443,478 14,751 6.69% 389,003 11,709 6.07% Nontaxable debt securities 25,815 852 6.64% 27,122 916 6.81% Corporate stocks and FHLB stock 33,517 1,538 9.23% 30,333 1,243 8.26% - -------------------------------------------------------------------------------------------------------------------- Total securities 515,365 17,519 6.84% 458,857 14,156 6.22% - -------------------------------------------------------------------------------------------------------------------- Total interest-earning assets 1,071,666 41,361 7.76% 969,876 36,108 7.51% - -------------------------------------------------------------------------------------------------------------------- Non interest-earning assets 61,810 60,788 - -------------------------------------------------------------------------------------------------------------------- Total assets $1,133,476 $1,030,664 - -------------------------------------------------------------------------------------------------------------------- Liabilities and Shareholders' Equity: Savings deposits $231,994 $1,995 1.73% $221,270 $1,950 1.73% Time deposits 343,286 9,227 5.41% 317,215 7,833 4.98% FHLB advances 370,933 11,023 5.98% 296,691 7,872 5.35% Other 2,239 64 5.77% 19,162 475 4.99% - -------------------------------------------------------------------------------------------------------------------- Total interest-bearing liabilities 948,452 22,309 4.73% 854,338 18,130 4.28% Demand deposits 98,749 89,383 Non interest-bearing liabilities 6,947 7,266 - -------------------------------------------------------------------------------------------------------------------- Total liabilities 1,054,148 950,987 Total shareholders' equity 79,328 79,677 - -------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $1,133,476 $1,030,664 - -------------------------------------------------------------------------------------------------------------------- Net interest income $19,052 $17,977 - -------------------------------------------------------------------------------------------------------------------- Net interest spread 3.03% 3.23% - -------------------------------------------------------------------------------------------------------------------- Net interest margin 3.58% 3.74% - -------------------------------------------------------------------------------------------------------------------- Interest income amounts presented in the table above include the following adjustments for taxable equivalency: (Dollars in thousands) Six months ended June 30, 2000 1999 - -------------------------------------------------------------------------------- Commercial and other loans $ 61 $ 65 Nontaxable debt securities 297 310 Corporate stocks 197 190
Financial Condition and Liquidity Total assets rose 6.8% from $1.106 billion at December 31, 1999 to $1.181 billion at June 30, 2000. Average assets totaled $1.133 billion for the six months ended June 30, 2000, up 10.0% over the comparable 1999 period. Nonperforming assets (nonaccrual loans and property acquired through foreclosure) amounted to $3.4 million, or .29% of total assets, at June 30, 2000 compared to $3.8 million, or .35% of total assets, at December 31, 1999. The allowance for loan losses amounted to $12.9 million, or 2.25% of total loans, at June 30, 2000, compared to $12.3 million, or 2.25%, at December 31, 1999. Securities Available for Sale - The carrying value of securities available for sale at June 30, 2000 amounted to $376.8 million, an increase of 14.0% over the December 31, 1999 amount of $330.4 million. This increase was attributable to purchases of debt securities. The net unrealized loss on securities available for sale amounted to $1.2 million, compared to a net unrealized gain of $742 thousand at December 31, 1999. This decline was attributable to the effects of higher interest rates. Securities Held to Maturity - The carrying value of securities held to maturity amounted to $124.4 million at June 30, 2000, up from $116.4 million at December 31, 1999. This increase was due to purchases of obligations of U.S. government-sponsored agencies and mortgage-backed securities. The net unrealized loss on securities held to maturity amounted to approximately $3.6 million at June 30, 2000, compared to $3.5 million at December 31, 1999. Loans - Total loans amounted to $573.9 million at June 30, 2000. During the first six months of 2000, total loans increased $24.9 million, or 4.5% (9.1% on an annualized basis). The increase in total loans was led by growth in the residential and home equity products. Total residential real estate loans amounted to $242.6 million, an increase of $16.9 million, or 7.5%, from the December 31, 1999 balance of $225.7 million. Total consumer loans increased $9.4 million, or 10.3%, from December 31, 1999 and amounted to $100.3 million. Commercial loans amounted to $231.0 million at June 30, 2000, compared to $232.4 million at December 31,1999. Deposits - Total deposits amounted to $700.0 million at June 30, 2000, up $39.2 million, or 5.9% (11.9% on an annualized basis), from $660.8 million at December 31, 1999. In the first half of 2000, time deposits increased $28.2 million and amounted to $351.2 million at June 30, 2000. Demand and savings deposits increased by $7.6 million and $3.5 million, respectively, due to normal seasonal deposit inflow. Borrowings - The Corporation utilizes advances from the Federal Home Loan Bank as well as other short-term borrowings as part of its overall funding strategy. In addition to deposit growth, additional FHLB advances were used to meet short-term liquidity needs, to fund loan growth and to purchase securities. FHLB advances amounted to $386.4 million at June 30, 2000, up $33.9 million from the December 31, 1999 amount. In addition, short-term borrowings outstanding at June 30, 2000 and December 31, 1999 amounted to $5.4 million and $4.2 million, respectively. For the six months ended June 30, 2000, net cash provided by operations amounted to $6.8 million, the majority of which was generated by net income. Net cash used in investing activities amounted to $83.2 million and was primarily used to purchase securities. Net cash provided by financing activities of $70.9 million was generated mainly by an increase in total deposits and a net increase in FHLB advances. (See Consolidated Statements of Cash Flows for additional information.) Nonperforming Assets Nonperforming assets are summarized in the following table: June 30, December 31, (Dollars in thousands) 2000 1999 - -------------------------------------------------------------------------------- Nonaccrual loans 90 days or more past due $1,611 $1,902 Nonaccrual loans less than 90 days past due 1,785 1,896 - -------------------------------------------------------------------------------- Total nonaccrual loans 3,396 3,798 Other real estate owned 38 49 - -------------------------------------------------------------------------------- Total nonperforming assets $3,434 $3,847 - -------------------------------------------------------------------------------- Nonaccrual loans as a percentage of total loans .59% .69% Nonperforming assets as a percentage of total assets .29% .35% Allowance for loan losses to nonaccrual loans 380.55% 325.15% Allowance for loan losses to total loans 2.25% 2.25% Not included in the analysis of nonperforming assets at June 30, 2000 and December 31, 1999 above are approximately $214 thousand and $120 thousand, respectively, of loans greater than 90 days past due and still accruing. These loans consist primarily of residential mortgages that are considered well-collateralized and in the process of collection and therefore are deemed to have no loss exposure. Impaired loans consist of all nonaccrual commercial loans. At June 30, 2000, the recorded investment in impaired loans was $1.9 million, which had a related allowance amounting to $261 thousand. During the six months ended June 30, 2000, the average recorded investment in impaired loans was $2.0 million. Also during this period, interest income recognized on impaired loans amounted to approximately $101 thousand. Interest income on impaired loans is recognized on a cash basis only. The following is an analysis of nonaccrual loans by loan category: June 30, December 31, (Dollars in thousands) 2000 1999 - -------------------------------------------------------------------------------- Residential mortgages $ 776 $1,015 Commercial: Mortgages 869 797 Other (1) 1,065 1,242 Consumer 686 744 - -------------------------------------------------------------------------------- Total nonaccrual loans $3,396 $3,798 - -------------------------------------------------------------------------------- (1) Loans to businesses and individuals, a substantial portion of which is fully or partially collateralized by real estate. Capital Resources Total equity capital amounted to $79.1 million, or 6.7% of total assets, at June 30, 2000. This compares to $78.2 million, or 7.1%, at December 31, 1999. Total equity increased by approximately $932 thousand from December 31, 1999. The increase in equity resulting from earnings retention was reduced by a $1.2 million decline in net unrealized gains on securities. (See the Consolidated Statements of Changes in Shareholders' Equity for additional information.) At June 30, 2000, the Corporation's Tier 1 risk-based capital ratio was 12.35% and the total risk-adjusted capital ratio was 13.88%. These ratios were both above the ratios required to be categorized as well-capitalized. Dividends payable at June 30, 2000 amounted to approximately $1.4 million, representing $.12 per share payable on July 14, 2000, an increase of 9.1% over the $.11 per share declared in the fourth quarter of 1999. Dividends declared per share represent historical per share dividends declared by the Corporation and have not been restated as a result of the acquisition of Phoenix. 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. Book value per share as of June 30, 2000 and December 31, 1999 amounted to $6.60 and $6.55, respectively. Litigation The Bank is party to a lawsuit filed by a former corporate customer and the customer's shareholders for damages which the plaintiffs allegedly incurred as a result of an embezzlement by an officer of the customer. Management believes, based on its review with counsel of the development of this matter to date that the Bank has asserted meritorious affirmative defenses in this litigation. Additionally, the Bank has filed counterclaims against the customer and its principal shareholder, as well as claims against the officer allegedly responsible for the embezzlement. The Bank is vigorously asserting its defenses and affirmative claims. The discovery phase of the case has effectively been completed and the case is currently scheduled for trial on October 23, 2000. During discovery, the plaintiffs have indicated that their total asserted damages are approximately $5.0 to $5.5 million, plus interest thereon. Because of the numerous uncertainties that surround the litigation, management and legal counsel are unable to estimate the amount of loss, if any, that the Bank may incur with respect to this litigation. Consequently, no loss provision for this lawsuit has been recorded. Recent Accounting Developments Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities" establishes accounting and reporting standards for derivative instruments and for hedging activities. SFAS No. 133 requires a corporation to recognize all derivatives as either assets or liabilities in the balance sheet and to measure those instruments at fair value. This Statement defines conditions and criteria to be used in designating a derivative as a specific type of hedging instrument. SFAS No. 133 also explains the accounting for changes in the fair value of a derivative, which depends on the intended use and the resulting designation. Under this Statement, a corporation is required to establish at the inception of the hedge the method to be used for assessing the effectiveness of the hedging derivative and the measurement approach for determining the ineffective aspect of the hedge. Those methods must be consistent with the corporation's approach to managing risk. In June 1999, the Financial Accounting Standards Board (FASB) issued SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133". In June 2000, the FASB issued SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities". This Statement addresses a limited number of issues causing implementation difficulties for entities that apply Statement 133. SFAS No. 133 is effective for all fiscal quarters of all fiscal years beginning after June 15, 2000 and is not to be applied retroactively to the financial statements of prior periods. The Corporation has not yet determined what the effect of the adoption of this pronouncement will have on the financial position and earnings of the Corporation. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Interest Rate Sensitivity and Liquidity Interest rate risk is one of the major market risks faced by the Corporation. The Corporation's objective is to manage assets and funding sources to produce results which are consistent with its liquidity, capital adequacy, growth, risk and profitability goals. The Corporation manages interest rate risk using income simulation to measure interest rate risk inherent in its on-balance sheet and off-balance sheet financial instruments at a given point in time by showing the effect of interest rate shifts on net interest income over a 60 month period. The simulation results are reviewed to determine whether the negative exposure of net interest income to changes in interest rates remains within established tolerance levels over a 24-month horizon, and to develop appropriate strategies to manage this exposure. In addition, the ALCO reviews 60-month horizon results to assess longer-term risk inherent in the balance sheet, although no 60-month horizon tolerance levels are specified. As of June 30, 2000, the Corporation's estimated exposure as a percentage of net interest income for the next 12 month period and the subsequent 12 month period thereafter (months 13 - 24), respectively, is as follows: Months 1 - 12 Months 13 - 24 - ------------------------------------------- ------------------- ---------------- 200 basis point increase in rates -1.5% -7.4% 200 basis point decrease in rates -0.1% +0.1% Since this simulation assumes the Corporation's balance sheet will remain static over the 24-month simulation horizon, the results do not reflect adjustments in strategy that the Corporation could implement in response to rate shifts, and should therefore not be relied upon as a projection of net interest income. For a complete discussion of interest rate sensitivity and liquidity, including simulation assumptions, see the Corporation's Annual Report on Form 10-K for the year ended December 31, 1999. The Corporation also monitors the potential change in market value of its available for sale debt securities using both parallel rate shifts of up to 200 basis points and "value at risk" analysis. The purpose is to determine market value exposure which may not be captured by income simulation, but which might result in changes to the Corporation's capital position. Results are calculated using industry-standard modeling analytics and securities data. The Corporation uses the results to manage the effect of market value changes on the Corporation's capital position. As of June 30, 2000, an immediate 200 basis point rise in rates would result in a 4.4% decline in the value of the Corporation's available for sale debt securities. Conversely, a 200 basis point fall in rates would result in a 2.7% increase in the value of the Corporation's available for sale debt securities. "Value at risk" analysis measures the theoretical maximum market value loss over a given time period based on recent historical price activity of different classes of securities. The anticipated maximum market value reduction for the bank's available for sale securities portfolio at June 30, 2000, including both debt and equity securities, was 4.0%, assuming a one-year time horizon and a 5% probability of occurrence for "value at risk" analysis. PART II OTHER INFORMATION Item 1. Legal Proceedings On January 28, 1997, a suit was filed against the Bank in the Superior Court of Washington County, Rhode Island by Maxson Automatic Machinery Company ("Maxson"), a former corporate customer, and Maxson's shareholders for damages which the plaintiffs allegedly incurred as a result of an embezzlement by Maxson's former president and treasurer. The suit alleges that the Bank wrongly permitted this individual, while an officer of Maxson, to divert funds from Maxson's account at the Bank for his personal benefit. The claims against the Bank are based upon theories of breach of fiduciary duty, negligence, breach of contract, unjust enrichment, conversion, failure to act in a commercially reasonable manner, and constructive fraud. Management believes, based on its review with counsel of the development of this matter to date, that the Bank has asserted meritorious affirmative defenses in this litigation. Additionally, the Bank has filed counterclaims against Maxson and its principal shareholder as well as claims against the officer allegedly responsible for the embezzlement. The Bank is vigorously asserting its defenses and affirmative claims. The discovery phase of the case has effectively been completed and the case is currently scheduled for trial on October 23, 2000. During discovery, the plaintiffs have indicated that their total asserted damages are approximately $5.0 to $5.5 million, plus interest thereon. Because of the numerous uncertainties that surround the litigation, management and legal counsel are unable to estimate the amount of loss, if any, that the Bank may incur with respect to this litigation. Consequently, no loss provision has been recorded. The Corporation is involved in various other claims and legal proceedings arising out of the ordinary course of business. Management is of the opinion, based on its review with counsel of the development of such matters to date, that the ultimate disposition of such other matters will not materially affect the consolidated financial position or results of operations of the Corporation. Item 2. Changes in Securities and Use of Proceeds None Item 3. Defaults upon Senior Securities None Item 4. Submission of Matters to a Vote of Security Holders (a) The Annual Meeting of Shareholders was held on April 25, 2000. (b) The results of matters voted upon are presented below. i. A proposal to elect Steven J. Crandall, Richard A. Grills, Edward M. Mazze, James W. McCormick, Jr., Victor J. Orsinger II, H. Douglas Randall III, Joyce O. Resnikoff, James P. Sullivan and Neil H. Thorp as directors of the Corporation for staggered terms, each to serve until their successors are duly elected and qualified, passed as follows: Abstentions Votes Votes and Broker Term In Favor Withheld Non-votes - ------------------------ ---------- ------------- ------------ ---------------- Steven J. Crandall 3 years 8,589,037 158,963 0 Richard A. Grills 3 years 8,588,091 159,909 0 Edward M. Mazze 1 year 8,570,810 177,189 0 James W. McCormick, Jr. 3 years 8,558,662 189,338 0 Victor J. Orsinger II 3 years 8,380,569 367,430 0 H. Douglas Randall III 2 years 8,587,653 160,347 0 Joyce O. Resnikoff 1 year 8,582,812 165,187 0 James P. Sullivan 3 years 8,578,384 169,615 0 Neil H. Thorp 3 years 8,585,101 162,898 0 ii. A proposal for the ratification of KPMG LLP to serve as independent auditors of the Corporation for the current fiscal year ending December 31, 2000 was passed by a vote of 8,658,920 shares in favor; 85,227 shares against, with 3,853 abstentions and broker non-votes. Item 5. Other Information None Item 6. Exhibits and Reports on Form 8-K (a) Exhibit index Exhibit No. 10.a Change in Control Agreement with Executive Officer (1) 10.b Amendment to the Registrant's 1997 Equity Incentive Plan (1) 11 Statement re Computation of Per Share Earnings 27 Financial Data Schedule (b) On July 3, 2000, a Form 8-K was filed which reported that the Corporation completed the acquisition of Phoenix Investment Management Company, Inc., an independent investment advisory firm located in Providence, Rhode Island. (1) Management contract or compensatory plan or arrangement. 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) August 9, 2000 By: John C. Warren --------------------------------------------- John C. Warren Chairman and Chief Executive Officer (principal executive officer) August 9, 2000 By: David V. Devault -------------------------------------------- David V. Devault Executive Vice President, Treasurer and Chief Financial Officer (principal financial and accounting officer) EX-10.A 2 0002.txt Exhibit 10.a Change in Control Agreement with Executive Officer WASHINGTON TRUST BANCORP, INC. 23 BROAD STREET WESTERLY, RHODE ISLAND 02891 In the second quarter of 2000, the Registrant entered into a Change of Control Agreement with one of its executive officers. The form of Agreement, filed as Exhibit 10 to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2000, contains blanks where the multiple of the executive's base amount and the term of continued benefits provided under the Agreement vary for certain executives. The executive officer who entered into the Agreement, the multiple of the executive's base amount and the term of continued benefits provided under the Agreement are listed in the following chart: Number of Times Term of Base Amount Continued Benefits Executive Officer (Section 4 a) (Section 4 b & c) - -------------------------------------------------------------------------------- Elizabeth B. Eckel Senior Vice President - Marketing 1 time 12 months EX-10.B 3 0003.txt Exhibit 10.b Amendment to WASHINGTON TRUST BANCORP, INC. 1997 Equity Incentive Plan In the second quarter of 2000, the Registrant amended its 1997 Equity Incentive Plan filed as Exhibit 10.a to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997. The Amendment is as follows: A. Pursuant to the authority reserved in Section 13(d) of the Washington Trust Bancorp, Inc. 1997 Equity Incentive Plan (the "Plan"), Section 11 of the Plan is hereby amended by adding the following at the end of the first paragraph thereof: "Beginning with the 2000 Annual Meeting, unless otherwise determined by the Board, each Director of the Corporation who is not an employee of the Corporation shall automatically be granted a Nonqualified Option covering 2000 shares as of the date of each Annual Meeting of the Corporation after which such Director will continue to serve as a Director of the Corporation." B. Except as provided herein, the Plan is confirmed in all other respect. EX-11 4 0004.txt EXHIBIT 11 Washington Trust Bancorp, Inc. Computation of Per Share Earnings For the Periods Ended June 30, 2000 and 1999
Three months ended June 30, 2000 1999 - --------------------------------------------------------------------------------------------------- (In thousands, except per share amounts) Basic Diluted Basic Diluted ------------------------------------------------------ Net income $2,392 $2,392 $3,345 $3,345 Share amounts: Average outstanding 11,978.6 11,978.6 11,879.9 11,879.9 Common stock equivalents - 127.3 - 217.1 - -------------------------------------------------------- ------------------------------------------ Weighted average outstanding 11,978.6 12,105.9 11,879.9 12,097.0 - --------------------------------------------------------------------------------------------------- Earnings per share $.20 $.20 $.28 $.28 - --------------------------------------------------------------------------------------------------- Six months ended June 30, 2000 1999 - --------------------------------------------------------------------------------------------------- (In thousands, except per share amounts) Basic Diluted Basic Diluted ------------------------------------------------------ Net income $5,824 $5,824 $6,518 $6,518 Share amounts: Average outstanding 11,957.4 11,957.4 11,846.1 11,846.1 Common stock equivalents - 142.8 - 246.0 - --------------------------------------------------------------------------------------------------- Weighted average outstanding 11,957.4 12,100.2 11,846.1 12,092.1 - --------------------------------------------------------------------------------------------------- Earnings per share $.49 $.48 $.55 $.54 - ---------------------------------------------------------------------------------------------------
EX-27 5 0005.txt FDS ARTICLE 9
9 THIS SCHEDULE CONTAINS FINANCIAL SUMMARY INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS AND NOTES THERETO OF WASHINGTON TRUST BANCORP, INC. AS OF JUNE 30, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS DEC-31-2000 JUN-30-2000 21,168 0 17,900 0 376,752 124,383 120,765 573,929 12,923 1,181,092 699,990 5,428 396,576 0 0 0 750 78,348 1,181,092 23,781 16,647 378 40,806 11,222 22,309 18,497 700 758 19,342 8,370 8,370 0 0 5,824 0.49 0.48 3.58 3,396 214 0 0 12,349 384 258 12,923 12,923 0 0
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