EX-99.1 2 exhibit99.htm EXHIBIT 99.1 exhibit99.htm
 
Exhibit 99.1
 
[Graphic Omitted]
NASDAQ: WASH
 
Contact:  Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone:  (401) 348-1309
E-mail:  ebeckel@washtrust.com
Date:  July 25, 2011
FOR IMMEDIATE RELEASE

Washington Trust Announces Record Net Income for Second Quarter 2011
Diluted Earnings Per Share up 39% over Second Quarter 2010

Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global SelectÒ; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2011 net income of $7.6 million, or 46 cents per diluted share, compared to second quarter 2010 net income of  $5.3 million, or 33 cents per diluted share.  The returns on average equity and average assets for the second quarter of 2011 were 10.83% and 1.04%, respectively, compared to 8.05% and 0.73%, respectively, for the same period in 2010.

For the six months ended June 30, 2011, net income amounted to $14.4 million, or 88 cents per diluted share, compared to $10.5 million, or 65 cents per diluted share, for the same period in 2010.  The returns on average equity and average assets for the first six months of 2011 were 10.44% and 0.99%, respectively, compared to 8.03% and 0.72%, respectively, for the same period in 2010.

“Washington Trust posted record quarterly net income, as our state-wide presence and client base continues to grow in a challenging economy,” stated Joseph J. MarcAurele, Washington Trust Chairman, President and Chief Executive Officer. “We’re excited about the opportunities offered by our new East Providence branch, which is scheduled to open in September 2011.”

Financial Highlights:
·  
A gain of $203 thousand ($141 thousand after tax; 1 cent per share) was recognized on the sale of a bank property in the second quarter of 2011.
·  
Net interest margin amounted to 3.21% for the second quarter of 2011 compared to 3.16% for the first quarter of 2011 and up by 35 basis points from the 2.86% reported for the second quarter of 2010.
·  
Wealth management revenues increased by $430 thousand, or 6%, from the first quarter of 2011 and by $747 thousand, or 11%, from the second quarter of 2010.  Assets under administration increased by 1% in the second quarter and by 5% in the first six months of 2011.
·  
The loan loss provision charged to earnings in the second quarter of 2011 was $1.2 million, a decrease of $300 thousand on both a linked quarter basis and compared to the second quarter of 2010.
 
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Washington Trust
Page Two, July 25, 2011

·  
Federal Deposit Insurance Corp. (“FDIC”) deposit insurance premiums were down by $320 thousand from the second quarter of 2010 and by $259 thousand from the first quarter of 2011, reflecting lower assessment rates.
·  
Total loan growth amounted to $28 million, or 1%, in the second quarter of 2011, with commercial loan growth of $17 million and residential mortgage loan growth of $9 million.
·  
A balance sheet management transaction was conducted in May 2011 that included the sale of $5.7 million in mortgage-backed securities and prepayment of $5.0 million Federal Home Loan Bank of Boston (“FHLBB”) advances.  The transaction resulted in net realized gains on securities of $226 thousand and a $221 thousand debt prepayment penalty.
·  
Nonperforming assets amounted to $24.1 million, or 0.82% of total assets, at June 30, 2011, up from $22.3 million, or 0.77% of total assets, at March 31, 2011.  Total loans 30 days or more past due amounted to $24.6 million, or 1.19% of total loans, at June 30, 2011, down by $2.7 million in the second quarter.

Net Interest Income
Net interest income for the second quarter of 2011 increased by $737 thousand, or 4%, from the first quarter of 2011 and by $2.2 million, or 12%, from the second quarter a year ago.

The net interest margin for the second quarter of 2011 was 3.21%, up by 5 basis points from the first quarter of 2011 and by 35 basis points from the second quarter of 2010.  For the six months ended June 30, 2011, the net interest margin was 3.19%, up by 37 basis points from the same period a year earlier.  The quarter and year-to-date increases in net interest margin are due in large part to lower funding costs.

Noninterest Income
Noninterest income totaled $13.3 million for the second quarter of 2011, up by $1.6 million, or 14%, on a linked quarter basis and up by $2.1 million, or 19%, over the second quarter of 2010.  Second quarter 2011 noninterest income included $226 thousand of net realized gains on securities related to the previously described balance sheet management transaction and also included $203 thousand of gain recognized on the sale of a bank property, which was classified in other income.  Excluding these two second quarter items, noninterest income increased by $1.2 million, or 10%, from the first quarter of 2011 and by $1.7 million, or 15%, from the same period a year earlier.  The increase in noninterest income reflected increases in wealth management revenues and merchant processing fees.

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Washington Trust
Page Three, July 25, 2011

Wealth management revenues for the second quarter of 2011 increased by $430 thousand, or 6%, on a linked quarter basis and by $747 thousand, or 11%, over the second quarter a year ago.  On a linked quarter basis, the increase in wealth management revenues includes a $254 thousand increase in tax preparation fees, which are typically concentrated in the second quarter.

Wealth management assets under administration totaled $4.1 billion at June 30, 2011, up by $29 million, from March 31, 2011 reflecting increases in market value net of income of $2 million and net client cash inflows of $28 million.  Assets under administration were up by $181 million from December 31, 2010 and up by $522 million from June 30, 2010.

There were no other-than-temporary impairment losses on investment securities recognized in the second quarter of 2011, compared to $33 thousand in the first quarter of 2011 and $354 thousand in the second quarter a year earlier.

Noninterest Expenses
Noninterest expenses totaled $22.3 million for the second quarter of 2011.  Second quarter of 2011 noninterest expenses included $221 thousand of debt prepayment charges.  Excluding second quarter debt prepayment charges, noninterest expenses increased  by $1.3 million, or 6%, from the first quarter of 2011 and by $1.1 million, or 5%, from the same period a year earlier.  The increase in noninterest expenses reflected increases in salaries and employee benefit costs, merchant processing costs and foreclosed property costs, offset in part by lower FDIC deposit insurance costs.

Salaries and employee benefits costs, the largest component of noninterest expenses, increased by $570 thousand, or 5%, on a linked-quarter basis, due in large part to seasonal hires and higher commissions and incentives.  Salaries and employee benefits costs increased by $672 thousand, or 6%, compared to the second quarter of 2010.  This increase reflected higher staffing levels at the Burlington, Massachusetts mortgage production office, which opened in the first quarter of 2011, other selected staffing additions and higher commissions and incentives, which were being recognized at lower levels in 2010.

Income tax expense amounted to $3.3 million for the second quarter of 2011, compared to $3.0 million for the first quarter of 2011 and $2.2 million for the second quarter of 2010.  The effective tax rate for both the second quarter of 2011 and first quarter of 2011 was 30.5%, as compared to 29.4% for the second quarter of 2010.

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Washington Trust
Page Four, July 25, 2011

Asset Quality
Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure or repossession) amounted to $24.1 million, or 0.82% of total assets, at June 30, 2011, compared to $22.3 million, or 0.77% of total assets, at March 31, 2011.  Nonaccrual loans totaled $21.0 million at June 30, 2011, up by $1.6 million in the second quarter of 2011, reflecting a net increase of $1.3 million in nonaccrual residential loans.  Property acquired through foreclosure or repossession amounted to $2.2 million at June 30, 2011.  Four properties were acquired and five properties were sold during the quarter.

At June 30, 2011, total past due loans amounted to $24.6 million, or 1.19% of total loans, down by $2.7 million in the second quarter of 2011.  Total past due commercial loans amounted to $11.3 million, or 1.05% of total commercial loans, at June 30, 2011, down by $4.1 million in the second quarter of 2011.  Total past due residential mortgage loans were up by $1.4 million in the second quarter of 2011 including one mortgage with a carrying value of $942 thousand.

At June 30, 2011, loans classified as troubled debt restructurings totaled $18.6 million, down by $2.5 million from the $21.1 million balance at March 31, 2011, reflecting payoffs and declassification from troubled debt restructuring status.

The loan loss provision charged to earnings amounted to $1.2 million for the second quarter of 2011, down by $300 thousand from both the first quarter 2011 and second quarter 2010 levels.  Net charge-offs amounted to $956 thousand in the second quarter of 2011, as compared to net charge-offs of $974 thousand in the first quarter of 2011 and $1.2 million in the second quarter of 2010.

Loans
Total loans grew by $28 million, or 1%, in the second quarter of 2011.  We continued to experience good commercial origination activity in the second quarter, with a $17 million, or 1.4%, increase in the commercial loan portfolio, despite some larger paydowns.  The residential mortgage portfolio grew by $9 million in the second quarter of 2011 while consumer loan balances increased by $1 million.  During the first six months of 2011, total loans grew by $62 million, or 3%, with the largest increase in the commercial loan portfolio.

Investment Securities
The investment securities portfolio amounted to $592 million at June 30, 2011, up by $15 million from the

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Washington Trust
Page Five, July 25, 2011

balance at March 31, 2011, primarily due to purchases of mortgage-backed securities.  The investment securities portfolio decreased by $3 million from the balance at December 31, 2010.

Deposits and Borrowings
Deposits totaled $2 billion at June 30, 2011, down by $53 million, or 3%, from the balance at March 31, 2011 reflecting a seasonal decrease in governmental and other deposits, which are expected to build again during the third quarter of 2011.  On a year-to-date basis, total deposits declined by $40 million, or 2%, reflecting declines in money market account balances and time deposits, which were partially offset by increases in demand deposits, NOW accounts and savings account balances.

FHLBB advances totaled $558 million at June 30, 2011, up by $89 million from March 31, 2011 and up by $60 million from December 31, 2010.

Capital Management
Capital levels remain firmly above the regulatory minimums to be considered well capitalized, with total risk-based capital ratio of 12.98% at June 30, 2011, compared to 12.79% at December 31, 2010.  Total shareholder’s equity was $281.4 million at June 30, 2011, up by $12.6 million from the balance at December 31, 2010.

Dividends Declared
The Board of Directors declared a quarterly dividend of 22 cents per share for the quarter ended June 30, 2011.  The dividend was paid on July 14, 2011 to shareholders of record on June 30, 2011.

Conference Call
Washington Trust will host a conference call on Tuesday, July 26, 2011 at 8:30 a.m. Eastern Time to discuss second quarter results.  This call is being webcast and can be accessed through the Investor Relations section of the Washington Trust web site, www.washtrust.com.  Individuals may dial in to the call at 1-877-317-6789.  The international dial-in number is 1-412-317-6789.  A replay of the call will be posted in this same location on the web site shortly after the conclusion of the call.  To listen to a replay of the conference call, dial 1-877-344-7529.  For international access, dial 1-412-317-0088.  The Conference Number for replay is 10001534.  The replay will be available until 9:00 a.m. on August 9, 2011.

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Washington Trust
Page Six, July 25, 2011

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

Forward-Looking Statements
This press release contains certain statements that are “forward-looking statements”.  We may also make written or oral forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees.  You can identify forward-looking statements by the use of the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “assume”, “outlook”, “will”, “should”, and other expressions that predict or indicate future events and trends and which do not relate to historical matters.  You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Washington Trust.  These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following, changes in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits, reductions in the market value of wealth management assets under administration, changes in the value of securities and other assets, reductions in loan demand, changes in loan collectibility, default and charge-off rates, changes in the size and nature of Washington Trust’s competition, changes in legislation or regulation and accounting principles, policies and guidelines such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and changes in the assumptions used in making such forward-looking statements.  In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, as filed with the Securities and Exchange Commission and as updated by our Quarterly Reports on Form 10-Q, may result in these differences.  You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences.  These forward-looking statements were based on information, plans and estimates at the date of this press release, and Washington Trust assumes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Supplemental Information – Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures.  Washington Trust’s management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors.  These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.  Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.


 
 
 

Washington Trust Bancorp, Inc. and Subsidiaries
  
CONSOLIDATED BALANCE SHEETS (unaudited)
  
             
   
June 30,
    
December 31,
  
(Dollars in thousands, except par value)
  
2011
    
2010
  
Assets:
            
Cash and due from banks
   $ 64,265     $ 85,971  
Other short-term investments
     7,480       6,765  
Mortgage loans held for sale
     8,825       13,894  
Securities available for sale, at fair value;
                
amortized cost $570,905 in 2011 and $578,897 in 2010
     591,580       594,100  
Federal Home Loan Bank stock, at cost
     42,008       42,008  
Loans:
                
Commercial and other
     1,073,495       1,027,065  
Residential real estate
     658,347       645,020  
Consumer
     325,310       323,553  
Total loans
     2,057,152       1,995,638  
Less allowance for loan losses
     29,353       28,583  
Net loans
     2,027,799       1,967,055  
Premises and equipment, net
     25,265       26,069  
Investment in bank-owned life insurance
     52,802       51,844  
Goodwill
     58,114       58,114  
Identifiable intangible assets, net
     7,377       7,852  
Other assets
     50,791       55,853  
Total assets
   $ 2,936,306     $ 2,909,525  
Liabilities:
                
Deposits:
                
Demand deposits
   $ 261,016     $ 228,437  
NOW accounts
     236,162       241,974  
Money market accounts
     355,096       396,455  
Savings accounts
     227,014       220,888  
Time deposits
     916,755       948,576  
Total deposits
     1,996,043       2,036,330  
Federal Home Loan Bank advances
     558,441       498,722  
Junior subordinated debentures
     32,991       32,991  
Other borrowings
     22,005       23,359  
Other liabilities
     45,401       49,259  
Total liabilities
     2,654,881       2,640,661  
Shareholders’ Equity:
                
Common stock of $.0625 par value; authorized 30,000,000 shares;
                
issued 16,266,483 shares in 2011 and 16,171,618 shares in 2010
     1,017       1,011  
Paid-in capital
     86,838       84,889  
Retained earnings
     186,078       178,939  
Accumulated other comprehensive income
     7,492       4,025  
Total shareholders’ equity
     281,425       268,864  
Total liabilities and shareholders’ equity
   $ 2,936,306     $ 2,909,525  
 
 
 
 
Washington Trust Bancorp, Inc. and Subsidiaries
  
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
  
   
(Dollars and shares in thousands, except per share amounts)
  
Three Months
    
Six Months
  
Periods ended June 30,
  
2011
    
2010
    
2011
    
2010
  
Interest income:
                        
Interest and fees on loans
   $ 24,707     $ 24,180     $ 48,966     $ 48,148  
Interest on securities:
                                
Taxable
     4,869       5,837       9,642       11,888  
Nontaxable
     758       770       1,527       1,539  
Dividends on corporate stock and Federal Home Loan Bank stock
     66       54       133       109  
Other interest income
     13       13       37       34  
Total interest income
     30,413       30,854       60,305       61,718  
Interest expense:
                                
Deposits
     4,030       5,331       8,232       11,100  
Federal Home Loan Bank advances
     4,685       6,000       9,417       12,219  
Junior subordinated debentures
     392       447       782       1,077  
Other interest expense
     242       243       483       485  
Total interest expense
     9,349       12,021       18,914       24,881  
Net interest income
     21,064       18,833       41,391       36,837  
Provision for loan losses
     1,200       1,500       2,700       3,000  
Net interest income after provision for loan losses
     19,864       17,333       38,691       33,837  
Noninterest income:
                                
Wealth management services:
                                
Trust and investment advisory fees
     5,822       5,153       11,498       10,170  
Mutual fund fees
     1,135       1,105       2,258       2,215  
Financial planning, commissions and other service fees
     553       505       834       684  
Wealth management services
     7,510       6,763       14,590       13,069  
Service charges on deposit accounts
     909       913       1,841       1,762  
Merchant processing fees
     2,682       2,406       4,626       4,012  
Card interchange fees
     581       487       1,068       876  
Income from bank-owned life insurance
     482       474       958       913  
Net gains on loan sales and commissions on loans originated for others
     537       318       1,062       878  
Net realized gains on securities
     226       –       197       –  
Net gains (losses) on interest rate swap contracts
     (35 )     (121 )     41       (53 )
Equity in losses of unconsolidated subsidiaries
     (145 )     (50 )     (289 )     (102 )
Other income
     538       323       921       688  
Noninterest income, excluding other-than-temporary impairment losses
     13,285       11,513       25,015       22,043  
Total other-than-temporary impairment losses on securities
     –       (243 )     (54 )     (245 )
Portion of loss recognized in other comprehensive income (before taxes)
     –       (111 )     21       (172 )
Net impairment losses recognized in earnings
     –       (354 )     (33 )     (417 )
Total noninterest income
     13,285       11,159       24,982       21,626  
Noninterest expense:
                                
Salaries and employee benefits
     12,398       11,726       24,226       23,227  
Net occupancy
     1,236       1,237       2,557       2,461  
Equipment
     1,070       1,014       2,119       2,011  
Merchant processing costs
     2,345       2,057       4,014       3,414  
Outsourced services
     875       855       1,747       1,695  
FDIC deposit insurance costs
     464       784       1,187       1,578  
Legal, audit and professional fees
     467       408       959       926  
Advertising and promotion
     427       419       780       783  
Amortization of intangibles
     237       290       475       581  
Foreclosed property costs
     338       87       504       123  
Debt prepayment penalties
     221       –       221       –  
Other expenses
     2,186       2,106       4,215       3,861  
Total noninterest expense
     22,264       20,983       43,004       40,660  
Income before income taxes
     10,885       7,509       20,669       14,803  
Income tax expense
     3,320       2,211       6,304       4,333  
Net income
   $ 7,565     $ 5,298     $ 14,365     $ 10,470  
Weighted average common shares outstanding – basic
     16,251.6       16,104.6       16,224.5       16,081.3  
Weighted average common shares outstanding – diluted
     16,284.3       16,111.3       16,257.0       16,116.3  
Per share information:
Basic earnings per common share
   $ 0.46     $ 0.33     $ 0.88     $ 0.65  
 
Diluted earnings per common share
   $ 0.46     $ 0.33     $ 0.88     $ 0.65  
 
Cash dividends declared per share
   $ 0.22     $ 0.21     $ 0.44     $ 0.42  
 
 
 
Washington Trust Bancorp, Inc. and Subsidiaries
  
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
  
   
   
At or for the Quarters Ended
  
   
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sept. 30,
    
June 30,
  
(Dollars and shares in thousands, except per share amounts)
  
2011
    
2011
    
2010
    
2010
    
2010
  
Financial Data:
                              
Total assets
   $ 2,936,306     $ 2,892,272     $ 2,909,525     $ 2,909,003     $ 2,929,853  
Total loans
     2,057,152       2,029,637       1,995,638       2,011,148       1,972,498  
Total securities
     591,580       576,158       594,100       577,161       675,938  
Total deposits
     1,996,043       2,048,846       2,036,330       2,056,754       1,949,905  
Total shareholders’ equity
     281,425       273,885       268,864       267,109       265,411  
Net interest income
     21,064       20,327       20,253       20,101       18,833  
Provision for loan losses
     1,200       1,500       1,500       1,500       1,500  
Noninterest income, excluding other-than-temporary
                                        
impairment losses
     13,285       11,730       13,408       13,439       11,513  
Net impairment losses recognized in earnings
     -       (33 )     -       -       (354 )
Noninterest expenses
     22,264       20,740       21,796       22,855       20,983  
Income tax expense
     3,320       2,984       3,154       2,815       2,211  
Net income
     7,565       6,800       7,211       6,370       5,298  
                                         
Share Data:
                                        
Basic earnings per common share
   $ 0.46     $ 0.42     $ 0.44     $ 0.39     $ 0.33  
Diluted earnings per common share
   $ 0.46     $ 0.42     $ 0.44     $ 0.39     $ 0.33  
Dividends declared per share
   $ 0.22     $ 0.22     $ 0.21     $ 0.21     $ 0.21  
Book value per share
   $ 17.30     $ 16.87     $ 16.63     $ 16.55     $ 16.46  
Tangible book value per share – Non-GAAP (1)
   $ 13.27     $ 12.82     $ 12.55     $ 12.45     $ 12.34  
Market value per share
   $ 22.97     $ 23.74     $ 21.88     $ 19.12     $ 17.04  
                                         
Shares outstanding at end of period
     16,266.5       16,233.6       16,171.6       16,135.4       16,120.7  
Weighted average common shares outstanding–basic
     16,251.6       16,197.2       16,160.6       16,131.4       16,104.6  
Weighted average common shares outstanding–diluted
     16,284.3       16,229.8       16,182.7       16,136.3       16,111.3  
                                         
Key Ratios:
                                        
Return on average assets
     1.04 %     0.94 %     0.99 %     0.87 %     0.73 %
Return on average tangible assets – Non-GAAP (1)
     1.07 %     0.96 %     1.01 %     0.89 %     0.74 %
Return on average equity
     10.83 %     10.04 %     10.70 %     9.53 %     8.05 %
Return on average tangible equity – Non-GAAP (1)
     14.16 %     13.26 %     14.17 %     12.67 %     10.78 %
                                         
Capital Ratios:
                                        
Tier 1 risk-based capital
     11.72 % (i)     11.65 %     11.53 %     11.24 %     11.22 %
Total risk-based capital
     12.98 % (i)     12.92 %     12.79 %     12.50 %     12.47 %
Tier 1 leverage ratio
     8.61 % (i)     8.49 %     8.25 %     8.04 %     7.94 %
Equity to assets
     9.58 %     9.47 %     9.24 %     9.18 %     9.06 %
Tangible equity to tangible assets – Non-GAAP (1)
     7.52 %     7.36 %     7.14 %     7.07 %     6.95 %
(i) – estimated
                                        
                                         
Wealth Management Assets under
                                        
Administration (2):
                                        
Balance at beginning of period
   $ 4,119,207     $ 3,967,207     $ 3,744,632     $ 3,626,871     $ 3,869,502  
Net investment appreciation (depreciation) & income
     1,625       145,563       227,168       243,141       (250,445 )
Net customer cash flows
     27,601       6,437       (4,593 )     (19,611 )     7,814  
Other (3)
     –       –       –       (105,769 )     –  
Balance at end of period
   $ 4,148,433     $ 4,119,207     $ 3,967,207     $ 3,744,632     $ 3,626,871  

(1)  
See the section labeled “Supplemental Information – Non-GAAP Financial Measures” at the end of this document.
(2)  
Prior period amounts have been reclassified to conform to current period presentation.
(3)  
Amounts prior to 2011 have been revised to reflect current reporting practices.  The most significant change was related to a change in the nature of a client relationship, which reduced the scope and frequency of services provided by Washington Trust.  This change occurred at the beginning of the third quarter of 2010.  In 2011, management concluded that a declassification of these client assets from assets under administration was appropriate, based on its current reporting practices.  Accordingly, the 2010 assets under administration have been reduced by $106 million, beginning in the third quarter of that year.  This revision to previously reported assets under administration did not result in any change to the reported amounts of wealth management revenues.

 
 
 

Washington Trust Bancorp, Inc. and Subsidiaries
  
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
  
   
   
Six Months Ended
  
   
June 30,
    
June 30,
  
(Dollars and shares in thousands, except per share amounts)
  
2011
    
2010
  
Financial Data
            
Net interest income
   $ 41,391     $ 36,837  
Provision for loan losses
     2,700       3,000  
Noninterest income, excluding other-than-temporary impairment losses
     25,015       22,043  
Net impairment losses recognized in earnings
     (33 )     (417 )
Noninterest expenses
     43,004       40,660  
Income tax expense
     6,304       4,333  
Net income
     14,365       10,470  
                 
Share Data
                
Basic earnings per common share
   $ 0.88     $ 0.65  
Diluted earnings per common share
   $ 0.88     $ 0.65  
Dividends declared per share
   $ 0.44     $ 0.42  
                 
Weighted average common shares outstanding - basic
     16,224.5       16,081.3  
Weighted average common shares outstanding - diluted
     16,257.0       16,116.3  
                 
Key Ratios
                
Return on average assets
     0.99 %     0.72 %
Return on average tangible assets – Non-GAAP (1)
     1.02 %     0.74 %
Return on average equity
     10.44 %     8.03 %
Return on average tangible equity – Non-GAAP (1)
     13.72 %     10.79 %
                 
Asset Quality Data
                
Allowance for Loan Losses
                
Balance at beginning of period
   $ 28,583     $ 27,400  
Provision charged to earnings
     2,700       3,000  
Charge-offs
     (2,097 )     (2,538 )
Recoveries
     167       123  
Balance at end of period
   $ 29,353     $ 27,985  
                 
Net Loan Charge-Offs
                
Commercial:
                
Mortgages
   $ 455     $ 1,022  
Construction and development
     -       -  
Other
     1,049       1,066  
Residential:
                
Mortgages
     263       211  
Homeowner construction
     -       -  
Consumer
     163       116  
Total
   $ 1,930     $ 2,415  
                 
Net charge-offs to average loans (annualized)
     0.19 %     0.25 %
                 
Wealth Management Assets Under Administration
                
Balance at beginning of period
   $ 3,967,207     $ 3,735,646  
Net investment appreciation (depreciation) & income
     147,188       (151,324 )
Net customer cash flows
     34,038       42,549  
Balance at end of period
   $ 4,148,433     $ 3,626,871  

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



 
 
 



Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
 
For the Quarters Ended
 
June. 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
 
2011
2011
2010
2010
2010
Average Yield / Rate (taxable equivalent basis):
          
Assets:
          
Commercial and other loans
5.23%
5.28%
5.22%
5.29%
5.23%
Residential real estate loans, including
          
mortgage loans held for sale
4.72%
4.79%
4.76%
4.94%
5.05%
Consumer loans
3.91%
3.93%
3.96%
3.99%
4.00%
Total loans
4.86%
4.91%
4.87%
4.97%
4.97%
Cash, federal funds sold
          
and other short-term investments
0.15%
0.22%
0.21%
0.20%
0.17%
FHLBB stock
0.31%
0.31%
–%
–%
–%
Taxable debt securities
4.01%
3.93%
3.79%
3.93%
3.93%
Nontaxable debt securities
5.88%
5.95%
5.76%
5.76%
5.82%
Corporate stocks
7.50%
8.07%
7.42%
7.72%
7.60%
Total securities
4.28%
4.23%
4.08%
4.19%
4.17%
Total interest-earning assets
4.61%
4.61%
4.54%
4.63%
4.64%
Liabilities:
          
NOW accounts
0.10%
0.10%
0.12%
0.12%
0.12%
Money market accounts
0.25%
0.33%
0.34%
0.40%
0.56%
Savings accounts
0.12%
0.14%
0.14%
0.14%
0.17%
Time deposits
1.57%
1.61%
1.65%
1.74%
1.94%
FHLBB advances
3.80%
4.04%
4.13%
4.16%
4.08%
Junior subordinated debentures
4.77%
4.79%
5.15%
5.82%
5.43%
Other
4.48%
4.23%
4.43%
4.59%
4.63%
Total interest-bearing liabilities
1.61%
1.67%
1.70%
1.84%
2.00%
           
Interest rate spread (taxable equivalent basis)
3.00%
2.94%
2.84%
2.79%
2.64%
Net interest margin (taxable equivalent basis)
3.21%
3.16%
3.05%
3.01%
2.86%


   
At June 30, 2011
  
   
Amortized
    
Unrealized
    
Unrealized
    
Fair
  
(Dollars in thousands)
  
Cost (1)
    
Gains
    
Losses
    
Value
  
Securities Available for Sale:
                        
Obligations of U.S. government-sponsored enterprises
   $ 29,415     $ 3,834     $ −     $ 33,249  
Mortgage-backed securities issued by U.S. government
                                
agencies and U.S. government-sponsored enterprises
     411,629       20,098       (35 )     431,692  
States and political subdivisions
     78,445       3,595       (65 )     81,975  
Trust preferred securities:
                                
Individual name issuers
     30,620       −       (5,009 )     25,611  
Collateralized debt obligations
     4,414       −       (3,480 )     934  
Corporate bonds
     13,870       1,098       −       14,968  
Common stocks
     658       224       −       882  
Perpetual preferred stocks
     1,854       415       −       2,269  
Total securities available for sale
   $ 570,905     $ 29,264     $ (8,589 )   $ 591,580  

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


 
 
 
Washington Trust Bancorp, Inc. and Subsidiaries
  
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
  
       
   
Period End Balances At
  
(Dollars in thousands)
  
6/30/2011
    
3/31/2011
    
12/31/2010
    
9/30/2010
    
6/30/2010
  
Loans:
                              
Commercial:
Mortgages
   $ 562,976     $ 551,069     $ 518,623     $ 522,355     $ 510,315  
 
Construction & development
     19,448       34,615       47,335       62,820       67,215  
 
Other
     491,071       470,704       461,107       464,294       441,827  
 
Total commercial
     1,073,495       1,056,388       1,027,065       1,049,469       1,019,357  
Residential real estate:
Mortgages
     644,210       636,916       634,739       622,975       610,245  
 
Homeowner construction
     14,137       12,241       10,281       10,593       12,368  
 
Total residential real estate
     658,347       649,157       645,020       633,568       622,613  
Consumer:
Home equity lines
     223,284       221,003       218,288       218,898       218,440  
 
Home equity loans
     46,797       48,337       50,624       54,923       57,682  
 
Other
     55,229       54,752       54,641       54,290       54,406  
 
Total consumer
     325,310       324,092       323,553       328,111       330,528  
 
Total loans
   $ 2,057,152     $ 2,029,637     $ 1,995,638     $ 2,011,148     $ 1,972,498  

   
At June 30, 2011
  
(Dollars in thousands)
  
Balance
    
% of Total
  
Commercial Real Estate Loans by Property Location:
            
Rhode Island, Connecticut, Massachusetts
   $ 528,500       90.7 %
New York, New Jersey, Pennsylvania
     40,462       6.9 %
New Hampshire
     11,758       2.0 %
Other
     1,704       0.4 %
Total commercial real estate loans (1)
   $ 582,424       100.0 %
 
(1) 
Commercial real estate loans consist of commercial mortgages and construction and development loans.  Commercial mortgages are loans secured by income producing property.

   
At June 30, 2011
  
(Dollars in thousands)
  
Balance
    
% of Total
  
Residential Mortgages by Property Location:
            
Rhode Island, Connecticut, Massachusetts
   $ 629,477       95.6 %
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia
     12,488       1.9 %
Ohio
     7,038       1.1 %
California, Washington, Oregon
     3,453       0.5 %
Colorado, New Mexico, Utah
     2,095       0.3 %
Georgia
     1,669       0.3 %
New Hampshire
     1,655       0.3 %
Wyoming
     472       0.0 %
Total residential mortgages
   $ 658,347       100.0 %

   
Period End Balances At
  
(Dollars in thousands)
  
6/30/2011
    
3/31/2011
    
12/31/2010
    
9/30/2010
    
6/30/2010
  
Deposits:
                              
Demand deposits
   $ 261,016     $ 274,798     $ 228,437     $ 242,455     $ 225,494  
NOW accounts
     236,162       228,502       241,974       236,775       234,014  
Money market accounts
     355,096       387,923       396,455       408,828       378,004  
Savings accounts
     227,014       223,599       220,888       210,271       209,616  
Time deposits
     916,755       934,024       948,576       958,425       902,777  
Total deposits
   $ 1,996,043     $ 2,048,846     $ 2,036,330     $ 2,056,754     $ 1,949,905  
                                         
Out-of-market brokered certificates of deposits
                                        
included in time deposits
   $ 85,659     $ 51,778     $ 52,347     $ 69,385     $ 94,641  
In-market deposits, excluding out of market
                                        
brokered certificates of deposit
   $ 1,910,384     $ 1,997,068     $ 1,983,983     $ 1,987,369     $ 1,855,264  
 
 
 


Washington Trust Bancorp, Inc. and Subsidiaries
  
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
  
   
   
Period End Balances At
  
   
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sept. 30,
    
June 30,
  
(Dollars in thousands)
  
2011
    
2011
    
2010
    
2010
    
2010
  
Nonperforming Assets:
                              
Commercial mortgages
   $ 7,476     $ 6,068     $ 6,624     $ 6,426     $ 6,680  
Commercial construction and development
     –       –       –       –       –  
Other commercial
     3,152       4,445       5,259       6,256       8,418  
Residential real estate mortgages
     9,570       8,265       6,414       6,080       6,850  
Consumer
     780       601       213       824       789  
Total nonaccrual loans
   $ 20,978     $ 19,379     $ 18,510     $ 19,586     $ 22,737  
Nonaccrual investment securities
     934       752       806       841       872  
Property acquired through foreclosure or repossession
     2,189       2,163       3,644       2,612       2,338  
Total nonperforming assets
   $ 24,101     $ 22,294     $ 22,960     $ 23,039     $ 25,947  
                                         
Total past due loans to total loans
     1.19 %     1.34 %     1.27 %     1.24 %     1.45 %
Nonperforming assets to total assets
     0.82 %     0.77 %     0.79 %     0.79 %     0.89 %
Nonaccrual loans to total loans
     1.02 %     0.95 %     0.93 %     0.97 %     1.15 %
Allowance for loan losses to nonaccrual loans
     139.92 %     150.21 %     154.42 %     143.80 %     123.08 %
Allowance for loan losses to total loans
     1.43 %     1.43 %     1.43 %     1.40 %     1.42 %
                                         
Troubled Debt Restructured Loans:
                                        
Accruing troubled debt restructured loans
                                        
Commercial mortgages
   $ 6,552     $ 10,071     $ 11,736     $ 11,812     $ 6,176  
Other commercial
     4,026       4,554       4,594       2,498       2,224  
Residential real estate mortgages
     2,279       2,724       2,863       2,870       2,234  
Consumer
     317       417       509       817       997  
Accruing troubled debt restructured loans
     13,174       17,766       19,702       17,997       11,631  
Nonaccrual troubled debt restructured loans
                                        
Commercial mortgages
     2,555       826       1,302       1,473       986  
Other commercial
     455       526       431       213       301  
Residential real estate mortgages
     2,303       1,785       948       823       381  
Consumer
     131       199       41       43       43  
Nonaccrual troubled debt restructured loans
     5,444       3,336       2,722       2,552       1,711  
Total troubled debt restructured loans
   $ 18,618     $ 21,102     $ 22,424     $ 20,549     $ 13,342  
                                         



 
 
 


Washington Trust Bancorp, Inc. and Subsidiaries
  
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
  
   
   
Period End Balances At
  
   
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sept. 30,
    
June 30,
  
(Dollars in thousands)
  
2011
    
2011
    
2010
    
2010
    
2010
  
Past Due Loans:
                              
Loans 30–59 Days Past Due
                              
Commercial mortgages
   $ 1,507     $ 3,223     $ 2,185     $ 1,685     $ 3,898  
Other commercial loans
     1,783       2,474       1,862       2,632       3,284  
Residential real estate mortgages
     3,355       2,986       3,073       2,828       2,680  
Consumer loans
     1,979       1,735       2,005       2,218       3,364  
Loans 30–59 days past due
   $ 8,624     $ 10,418     $ 9,125     $ 9,363     $ 13,226  
                                         
Loans 60–89 Days Past Due
                                        
Commercial mortgages
   $ 1,013     $ 1,626     $ 514     $ –     $ 19  
Other commercial loans
     80       315       953       492       1,195  
Residential real estate mortgages
     992       1,345       1,477       430       861  
Consumer loans
     120       335       448       420       195  
Loans 60-89 days past due
   $ 2,205     $ 3,621     $ 3,392     $ 1,342     $ 2,270  
                                         
Loans 90 Days or more Past Due
                                        
Commercial mortgages
   $ 5,553     $ 5,242     $ 5,322     $ 4,952     $ 3,695  
Other commercial loans
     1,378       2,524       3,376       4,240       2,919  
Residential real estate mortgages
     6,549       5,165       4,041       4,696       5,942  
Consumer loans
     245       317       11       277       634  
Loans 90 days or more past due
   $ 13,725     $ 13,248     $ 12,750     $ 14,165     $ 13,190  
                                         
Total Past Due Loans
                                        
Commercial mortgages
   $ 8,073     $ 10,091     $ 8,021     $ 6,637     $ 7,612  
Other commercial loans
     3,241       5,313       6,191       7,364       7,398  
Residential real estate mortgages
     10,896       9,496       8,591       7,954       9,483  
Consumer loans
     2,344       2,387       2,464       2,915       4,193  
Total past due loans
   $ 24,554     $ 27,287     $ 25,267     $ 24,870     $ 28,686  
                                         
Nonaccrual loans included in past due loans
   $ 16,705     $ 16,456     $ 14,894     $ 15,870     $ 17,881  



   
For the Quarters Ended
  
   
June 30,
    
Mar. 31,
    
Dec. 31,
    
Sept. 30,
    
June 30,
  
(Dollars in thousands)
  
2011
    
2011
    
2010
    
2010
    
2010
  
Allowance for Loan Losses:
                              
Balance at beginning of period
   $ 29,109     $ 28,583     $ 28,165     $ 27,985     $ 27,711  
Provision charged to earnings
     1,200       1,500       1,500       1,500       1,500  
Charge-offs
     (1,046 )     (1,051 )     (1,396 )     (1,468 )     (1,263 )
Recoveries
     90       77       314       148       37  
Balance at end of period
   $ 29,353     $ 29,109     $ 28,583     $ 28,165     $ 27,985  
                                         
Net Loan Charge-Offs (Recoveries):
                                        
Commercial mortgages
   $ 122     $ 333     $ 226     $ (96 )   $ 531  
Other commercial
     540       509       695       1,026       558  
Residential real estate mortgages
     145       118       (99 )     301       90  
Consumer
     149       14       260       89       47  
Total
   $ 956     $ 974     $ 1,082     $ 1,320     $ 1,226  



 
 
 

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

Washington Trust Bancorp, Inc. and Subsidiaries
  
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
  
       
Three months ended June 30,
  
2011
    
2010
  
   
Average
          
Yield/
    
Average
          
Yield/
  
(Dollars in thousands)
  
Balance
    
Interest
    
Rate
    
Balance
    
Interest
    
Rate
  
Assets:
                    
 
              
Commercial and other loans
   $ 1,065,619     $ 13,900       5.23 %   $ 1,008,153     $ 13,149       5.23 %
Residential real estate loans, including
                                                
mortgage loans held for sale
     656,570       7,732       4.72 %     618,907       7,790       5.05 %
Consumer loans
     324,890       3,166       3.91 %     329,562       3,289       4.00 %
Total loans
     2,047,079       24,798       4.86 %     1,956,622       24,228       4.97 %
Cash, federal funds sold
                                                
and other short-term investments
     34,166       13       0.15 %     30,660       13       0.17 %
FHLBB stock
     42,008       32       0.31 %     42,008       –       – %
                                                 
Taxable debt securities
     486,905       4,869       4.01 %     595,523       5,837       3.93 %
Nontaxable debt securities
     78,447       1,150       5.88 %     79,467       1,154       5.82 %
Corporate stocks
     2,513       47       7.50 %     4,012       76       7.60 %
Total securities
     567,865       6,066       4.28 %     679,002       7,067       4.17 %
Total interest-earning assets
     2,691,118       30,909       4.61 %     2,708,292       31,308       4.64 %
Non interest-earning assets
     212,968                       212,546                  
Total assets
   $ 2,904,086                     $ 2,920,838                  
Liabilities and Shareholders’ Equity:
                                                
NOW accounts
   $ 229,746     $ 60       0.10 %   $ 213,045     $ 63       0.12 %
Money market accounts
     393,945       249       0.25 %     392,691       547       0.56 %
Savings accounts
     224,588       69       0.12 %     205,582       85       0.17 %
Time deposits
     935,813       3,652       1.57 %     957,311       4,636       1.94 %
FHLBB advances
     494,989       4,685       3.80 %     589,577       6,000       4.08 %
Junior subordinated debentures
     32,991       392       4.77 %     32,991       447       5.43 %
Other
     21,663       242       4.48 %     21,073       243       4.63 %
Total interest-bearing liabilities
     2,333,735       9,349       1.61 %     2,412,270       12,021       2.00 %
Demand deposits
     251,585                       207,271                  
Other liabilities
     39,485                       38,159                  
Shareholders’ equity
     279,281                       263,138                  
Total liabilities and shareholders’ equity
   $ 2,904,086                     $ 2,920,838                  
Net interest income (FTE)
           $ 21,560                     $ 19,287          
Interest rate spread
                     3.00 %                     2.64 %
Net interest margin
                     3.21 %                     2.86 %


Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
 
(Dollars in thousands)
            
             
Three months ended June 30,
  
2011
    
2010
  
Commercial and other loans
   $ 91     $ 48  
Nontaxable debt securities
     392       384  
Corporate stocks
     13       22  
Total
   $ 496     $ 454  
 
 
 

Washington Trust Bancorp, Inc. and Subsidiaries
  
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
  
       
Six months ended June 30,
  
2011
    
2010
  
   
Average
          
Yield/
    
Average
          
Yield/
  
(Dollars in thousands)
  
Balance
    
Interest
    
Rate
    
Balance
    
Interest
    
Rate
  
Assets:
                    
 
              
Commercial and other loans
   $ 1,051,577     $ 27,406       5.26 %   $ 997,042     $ 26,053       5.27 %
Residential real estate loans, including
                                                
mortgage loans held for sale
     653,938       15,432       4.76 %     617,216       15,664       5.12 %
Consumer loans
     324,471       6,310       3.92 %     329,438       6,528       4.00 %
Total loans
     2,029,986       49,148       4.88 %     1,943,696       48,245       5.01 %
Cash, federal funds sold
                                                
and other short-term investments
     39,029       37       0.19 %     33,201       34       0.21 %
FHLBB stock
     42,008       64       0.31 %     42,008       –       – %
                                                 
Taxable debt securities
     489,544       9,642       3.97 %     597,337       11,888       4.01 %
Nontaxable debt securities
     78,947       2,316       5.92 %     79,524       2,310       5.86 %
Corporate stocks
     2,512       96       7.71 %     4,012       151       7.59 %
Total securities
     571,003       12,054       4.26 %     680,873       14,349       4.25 %
Total interest-earning assets
     2,682,026       61,303       4.61 %     2,699,778       62,628       4.68 %
Non interest-earning assets
     212,379                       208,787                  
Total assets
   $ 2,894,405                     $ 2,908,565                  
Liabilities and Shareholders’ Equity:
                                                
NOW accounts
   $ 227,375     $ 118       0.10 %   $ 203,809     $ 127       0.13 %
Money market accounts
     396,614       572       0.29 %     400,907       1,164       0.59 %
Savings accounts
     222,481       144       0.13 %     201,255       170       0.17 %
Time deposits
     941,093       7,398       1.59 %     954,398       9,639       2.04 %
FHLBB advances
     485,233       9,417       3.91 %     590,769       12,219       4.17 %
Junior subordinated debentures
     32,991       782       4.78 %     32,991       1,077       6.58 %
Other
     22,389       483       4.35 %     21,030       485       4.65 %
Total interest-bearing liabilities
     2,328,176       18,914       1.64 %     2,405,159       24,881       2.09 %
Demand deposits
     250,550                       203,757                  
Other liabilities
     40,520                       38,828                  
Shareholders’ equity
     275,159                       260,821                  
Total liabilities and shareholders’ equity
   $ 2,894,405                     $ 2,908,565                  
Net interest income (FTE)
           $ 42,389                     $ 37,747          
Interest rate spread
                     2.97 %                     2.59 %
Net interest margin
                     3.19 %                     2.82 %


Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
 
(Dollars in thousands)
            
             
Six months ended June 30,
  
2011
    
2010
  
Commercial and other loans
   $ 182     $ 97  
Nontaxable debt securities
     789       771  
Corporate stocks
     27       42  
Total
   $ 998     $ 910  
 
 
 
 

Washington Trust Bancorp, Inc. and Subsidiaries
  
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited)
  
   
   
At or for the Quarters Ended
  
   
June. 30,
    
Mar. 31,
    
Dec. 31,
    
Sept. 30,
    
June 30,
  
(Dollars in thousands, except per share amounts)
  
2011
    
2011
    
2010
    
2010
    
2010
  
Calculation of Tangible Book Value per Share:
                              
Total shareholders’ equity at end of period
   $ 281,425     $ 273,885     $ 268,864     $ 267,109     $ 265,411  
Less:
                                        
Goodwill
     58,114       58,114       58,114       58,114       58,114  
Identifiable intangible assets, net
     7,377       7,614       7,852       8,089       8,362  
Total tangible shareholders’ equity at end of period
   $ 215,934     $ 208,157     $ 202,898     $ 200,906     $ 198,935  
                                         
Shares outstanding at end of period
     16,266.5       16,233.6       16,171.6       16,135.4       16,120.7  
                                         
Book value per share – GAAP
   $ 17.30     $ 16.87     $ 16.63     $ 16.55     $ 16.46  
Tangible book value per share – Non-GAAP
   $ 13.27     $ 12.82     $ 12.55     $ 12.45     $ 12.34  
                                         
Calculation of Tangible Equity to Tangible Assets:
                                        
Total tangible shareholders’ equity at end of period
   $ 215,934     $ 208,157     $ 202,898     $ 200,906     $ 198,935  
                                         
Total assets at end of period
   $ 2,936,306     $ 2,892,272     $ 2,909,525     $ 2,909,003     $ 2,929,853  
Less:
                                        
Goodwill
     58,114       58,114       58,114       58,114       58,114  
Identifiable intangible assets, net
     7,377       7,614       7,852       8,089       8,362  
Total tangible assets at end of period
   $ 2,870,815     $ 2,826,544     $ 2,843,559     $ 2,842,800     $ 2,863,377  
                                         
Equity to assets - GAAP
     9.58 %     9.47 %     9.24 %     9.18 %     9.06 %
Tangible equity to tangible assets – Non-GAAP
     7.52 %     7.36 %     7.14 %     7.07 %     6.95 %
                                         
Calculation of Return on Average Tangible Assets:
                                        
Net income
   $ 7,564     $ 6,800     $ 7,211     $ 6,370     $ 5,298  
                                         
Total average assets
   $ 2,904,086     $ 2,884,618     $ 2,912,770     $ 2,931,816     $ 2,920,838  
Less:
                                        
Average goodwill
     58,114       58,114       58,114       58,114       58,114  
Average identifiable intangible assets, net
     7,493       7,730       7,967       8,216       8,503  
Total average tangible assets
   $ 2,838,479     $ 2,818,774     $ 2,846,689     $ 2,865,486     $ 2,854,221  
                                         
Return on average assets - GAAP
     1.04 %     0.94 %     0.99 %     0.87 %     0.73 %
Return on average tangible assets – Non-GAAP
     1.07 %     0.96 %     1.01 %     0.89 %     0.74 %
                                         
Calculation of Return on Average Tangible Equity:
                                        
Net income
   $ 7,564     $ 6,800     $ 7,211     $ 6,370     $ 5,298  
                                         
Total average shareholders’ equity
   $ 279,281     $ 270,991     $ 269,570     $ 267,431     $ 263,138  
Less:
                                        
Average goodwill
     58,114       58,114       58,114       58,114       58,114  
Average identifiable intangible assets, net
     7,493       7,730       7,967       8,216       8,503  
Total average tangible shareholders’ equity
   $ 213,674     $ 205,147     $ 203,489     $ 201,101     $ 196,521  
                                         
Return on average shareholders’ equity - GAAP
     10.83 %     10.04 %     10.70 %     9.53 %     8.05 %
Return on average tangible shareholders’ equity –
  Non-GAAP
     14.16 %     13.26 %     14.17 %     12.67 %     10.78 %



 
 
 

Washington Trust Bancorp, Inc. and Subsidiaries
  
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited)
  
   
   
Six Months Ended
  
   
June 30,
    
June 30,
  
(Dollars in thousands)
  
2011
    
2010
  
Calculation of return on average tangible assets
            
Net income
   $ 14,364     $ 10,470  
                 
Total average assets
   $ 2,894,405     $ 2,908,565  
Less:
                
Average goodwill
     58,114       58,114  
Average identifiable intangible assets, net
     7,611       8,648  
Total average tangible assets
   $ 2,828,680     $ 2,841,803  
                 
Return on average assets - GAAP
     0.99 %     0.72 %
Return on average tangible assets – Non-GAAP
     1.02 %     0.74 %
                 
                 
Calculation of return on average tangible equity
                
Net income
   $ 14,364     $ 10,470  
                 
Total average shareholders’ equity
   $ 275,159     $ 260,821  
Less:
                
Average goodwill
     58,114       58,114  
Average identifiable intangible assets, net
     7,611       8,648  
Total average tangible shareholders’ equity
   $ 209,434     $ 194,059  
                 
Return on average shareholders’ equity - GAAP
     10.44 %     8.03 %
Return on average tangible shareholders’ equity –   Non-GAAP
     13.72 %     10.79 %