EX-99.1 2 exhibit99.htm EXHIBIT 99.1 Earnings ReleaseEX 99.1
Exhibit 99.1
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: January 25, 2012
FOR IMMEDIATE RELEASE

Washington Trust Announces Record Net Income for Fourth Quarter and Full Year 2011

Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2011 net income of $7.8 million compared to third quarter 2011 net income of $7.6 million and fourth quarter 2010 net income of $7.2 million. On a diluted earnings per share basis, Washington Trust reported earnings of 47 cents for the fourth quarter of 2011, compared to 46 cents for the previous quarter and up by 7% from the 44 cents reported for the fourth quarter of 2010. Fourth quarter 2011 earnings includes a reduction of 3 cents per diluted share related to certain transactions described below.

For the year ended December 31, 2011, net income totaled $29.7 million, or $1.82 per diluted share, compared to $24.1 million, or $1.49 per diluted share, for 2010. On a diluted earnings per share basis, 2011 earnings were up by 22% over 2010. The returns on average equity and average assets for 2011 were 10.61% and 1.02%, respectively, compared to 9.09% and 0.82%, respectively, for 2010.

“Washington Trust had a strong fourth quarter performance, contributing to record net income for the fourth quarter and for the year 2011,” stated Joseph J. MarcAurele, Washington Trust Chairman, President and CEO. “We surpassed $3 billion in assets for the first time in the Corporation’s 211-year history, and saw growth along all business lines. Washington Trust’s continued profitability in these challenging times is a testament to our Corporation’s solid foundation and reputation.”

Selected financial highlights for the fourth quarter included:
•
Total loans increased by $59 million, or 3%, during the fourth quarter of 2011, led by growth in the commercial loan portfolio.
•
Total deposits increased by $40 million, or 2%, from the end of the third quarter, reflecting growth in lower cost deposits.

-M O R E-



Washington Trust
Page Two, January 25, 2012

•
Net interest income for the fourth quarter of 2011 was up by 2% from the previous quarter end and by 9% from the fourth quarter of 2010.
•
Due to continued strong mortgage refinancing and sales activity, mortgage banking revenues totaled $2.9 million for the fourth quarter, up from $1.1 million for the third quarter of 2011 and $2.2 million from the fourth quarter of 2010.
•
The provision for loan losses was $1.0 million in the fourth quarter of 2011, unchanged from the previous quarter and down by $500 thousand from the fourth quarter of 2010.
•
In December 2011, Washington Trust made a contribution of appreciated equity securities to its charitable foundation. The cost of this contribution was $990 thousand and was included in noninterest expenses. This contribution also resulted in a realized gain of $331 thousand on the disposition of the equity security. The combined effect of this transaction was a net after-tax charge to earnings of $305 thousand, or 2 cents per diluted share.
•
A modest balance sheet management transaction was conducted in December 2011 that included the sale of $4.0 million in mortgage-backed securities and prepayment of $4.0 million Federal Home Loan Bank of Boston (“FHLBB”) advances. The transaction resulted in net realized gains on securities of $142 thousand and $473 thousand of debt prepayment penalty expense. The combined effect of this transaction was a net after-tax charge to earnings of $213 thousand, or 1 cent per diluted share.
•
Nonperforming assets amounted to $24.8 million, or 0.81% of total assets, at December 31, 2011, compared to $24.6 million, or 0.83% of total assets, at September 30, 2011.

Net Interest Income
Net interest income of $22.0 million for the fourth quarter of 2011 increased by 2% on a linked quarter basis and by 9% from the fourth quarter a year ago due to the continued reduction in cost of funds, primarily FHLBB advances and time deposits. Net interest margin for the fourth quarter of 2011 was 3.22%, level with the third quarter of 2011 and up from 3.05% for the fourth quarter of 2010.

Noninterest Income
Noninterest income totaled $14.8 million for the fourth quarter of 2011, up by $1.9 million on a linked quarter basis and by $1.4 million from the fourth quarter of 2010, largely due to growth in mortgage banking revenues.

Net gains on loan sales and commissions on loans originated for others increased by $1.9 million and $772 thousand, respectively, compared to the third quarter of 2011 and fourth quarter of 2010. This reflected the high volume of residential mortgage loan refinancing and sales activity during the quarter.

-M O R E-


Washington Trust
Page Three, January 25, 2012

Revenue from wealth management services, our largest source of noninterest income, is largely dependent on the value of wealth management assets under administration and is closely tied to the performance of the financial markets. Wealth management revenues for the fourth quarter of 2011 totaled $6.9 million, up by $134 thousand, or 2%, on a linked quarter basis and by $87 thousand, or 1%, over the fourth quarter of 2010. Wealth management assets under administration totaled $3.9 billion at December 31, 2011, up by $171 million, or 5%, from September 30, 2011.

Noninterest Expenses
Noninterest expenses totaled $24.8 million for the fourth quarter of 2011, up by $2.2 million and $3.0 million, respectively, from the third quarter of 2011 and fourth quarter of 2010. As described previously, during the fourth quarter of 2011, the Corporation made a $990 thousand contribution to its charitable foundation and also incurred a $473 thousand debt prepayment penalty. Fourth quarter 2010 noninterest expense also included a charitable foundation contribution of $350 thousand.

Excluding the impact of the charitable contributions and debt prepayment penalty, the linked quarter and year over year quarter increase in noninterest expenses was primarily due to an increase in salaries and employee benefits,which were up by $1.0 million, or 8%, on a linked quarter basis and $1.8 million, or 15%, compared to the fourth quarter of 2010. This increase reflected higher staffing levels in mortgage banking, other selected staffing additions and higher amounts of commissions paid to mortgage originators.

Income tax expense amounted to $3.3 million for the fourth quarter of 2011, essentially unchanged from the third quarter of 2011 and up from $3.2 million for the fourth quarter in 2010. The effective tax rate was 29.7% for the fourth quarter, compared to 30.5% for the previous quarter and 30.4% for the fourth quarter of 2010. Based on the current status of federal and applicable state income tax statutes, the Corporation currently expects the 2012 effective tax rate to be approximately 31.1%.

Asset Quality
Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure or repossession) remain at a level which we believe to be manageable, amounting to $24.8 million, or 0.81% of total assets, at December 31, 2011, compared to $24.6 million, or 0.83% of total assets, at September 30, 2011 and $23.0 million, or 0.79% of total assets, at December 31, 2010.


-M O R E-


Washington Trust
Page Four, January 25, 2012

At December 31, 2011, total past due loans amounted to $26.3 million, or 1.22% of total loans, up by $4.3 million from the third quarter of 2011, reflecting net increases of $2.7 million in past due commercial loans and $1.6 million in past due residential real estate loans. Included in the change in commercial loans was one loan totaling $1.7 million.

At December 31, 2011, loans classified as troubled debt restructurings totaled $19.6 million, up by $4.1 million from the balance at September 30, 2011, primarily reflecting the restructuring and pay down of an accruing commercial loan relationship from $9.7 million to $4.7 million, secured by real estate and marketable securities.

The loan loss provision charged to earnings amounted to $1.0 million for the fourth quarter of 2011, level with the third quarter of 2011 and down by $500 thousand from the fourth quarter of 2010. Net charge-offs amounted to $839 thousand in the fourth quarter of 2011, compared to net charge-offs of $712 thousand in the third quarter of 2011 and $1.1 million in the fourth quarter of 2010.

Loans
Total loans increased by $59 million, or 3%, in the fourth quarter of 2011 due to strong growth in the commercial portfolio, which increased by $54 million. For the year, total loans were up by $152 million, or 8%, with an increase of $98 million in the commercial loan portfolio and $55 million in the residential real estate portfolio.

Investment Securities
The investment securities portfolio amounted to $593 million at December 31, 2011, up by $12 million from the balance at September 30, 2011 and essentially unchanged from the balance at December 31, 2010.

Deposits and Borrowings
Deposits totaled $2.1 billion at December 31, 2011, up by $40 million, or 2%, from the balance at September 30, 2011. This primarily reflects increases in money market, demand and NOW accounts, offset, in part, by declines in time deposits. Total deposits have increased by $90 million, or 4%, from the balance at December 31, 2010, including a $111 million, or 49%, increase in demand deposits.

FHLBB advances totaled $540 million at December 31, 2011, up by $46 million from September 30, 2011 and $42 million from December 31, 2010.

-M O R E-


Washington Trust
Page Five, January 25, 2012

Capital Management
Capital levels remain above the regulatory minimums to be considered well capitalized, with total risk-based capital ratio of 12.86% at December 31, 2011, compared to 12.79% at December 31, 2010.

Total shareholder's equity amounted to $281 million at December 31, 2011, down by $4 million from September 30, 2011 and up by $12 million from the balance at December 31, 2010. A charge of $7.0 million to the accumulated other comprehensive income component of shareholders' equity was recorded at December 31, 2011, associated with the periodic remeasurement of the value of defined benefit pension liabilities. This charge was largely due to a decline in the discount rates used to measure the present value of pension liabilities as a result of a reduction in market rates of interest.

Expansion Plans
Washington Trust plans to open a new mortgage production office in Warwick, Rhode Island in the first quarter of 2012.

Dividends Declared
The Board of Directors declared a quarterly dividend of 22 cents per share for the quarter ended December 31, 2011. The dividend was paid on January13, 2012 to shareholders of record on January 3, 2012.

Conference Call
Washington Trust will host a conference call on Thursday, January 26, 2012 at 8:30 a.m. Eastern Time to discuss fourth 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 10008545. The replay will be available until 9:00 a.m. on February 8, 2012.


-M O R E-


Washington Trust
Page Six, January 25, 2012

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, Massachusetts and Connecticut. Washington Trust Bancorp, Inc.'s common stock trades on the NASDAQ Global Select 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)
 
 
 
 
 
 
 
 
(Dollars in thousands, except par value)
Dec 31,
2011
 
Dec 31,
2010
Assets:
 
 
 
Cash and due from banks

$82,238

 

$85,971

Other short-term investments
4,782

 
6,765

Mortgage loans held for sale; amortized cost $19,624 in 2011
20,340

 
13,894

Securities:
 
 
 
Available for sale, at fair value; amortized cost $524,036 in 2011 and $578,897 in 2010
541,253

 
594,100

Held to maturity, at cost; fair value $52,499 in 2011
52,139

 
—

Total Securities
593,392

 
594,100

Federal Home Loan Bank stock, at cost
42,008

 
42,008

Loans:
 
 
 

Commercial and other
1,124,628

 
1,027,065

Residential real estate
700,414

 
645,020

Consumer
322,117

 
323,553

Total loans
2,147,159

 
1,995,638

Less allowance for loan losses
29,802

 
28,583

Net loans
2,117,357

 
1,967,055

Premises and equipment, net
26,028

 
26,069

Investment in bank-owned life insurance
53,783

 
51,844

Goodwill
58,114

 
58,114

Identifiable intangible assets, net
6,901

 
7,852

Other assets
59,155

 
55,853

Total assets

$3,064,098

 

$2,909,525

 Liabilities:
 

 
 

Deposits:
 

 
 

Demand deposits

$339,809

 

$228,437

NOW accounts
257,031

 
241,974

Money market accounts
406,777

 
396,455

Savings accounts
243,904

 
220,888

Time deposits
878,794

 
948,576

Total deposits
2,126,315

 
2,036,330

Federal Home Loan Bank advances
540,450

 
498,722

Junior subordinated debentures
32,991

 
32,991

Other borrowings
19,758

 
23,359

Other liabilities
63,233

 
49,259

Total liabilities
2,782,747

 
2,640,661

Shareholders’ Equity:
 

 
 

Common stock of $.0625 par value; authorized 30,000,000 shares; issue 16,292,471 shares
 in 2011 and 16,171,618 shares in 2010
1,018

 
1,011

Paid-in capital
88,030

 
84,889

Retained earnings
194,198

 
178,939

Accumulated other comprehensive (loss) income
(1,895
)
 
4,025

Total shareholders’ equity
281,351

 
268,864

Total liabilities and shareholders’ equity

$3,064,098

 

$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
 
Twelve Months
Periods ended December 31,
2011
 
2010
 
2011
 
2010
Interest income:
 
 
 
 
 
 
 
Interest and fees on loans

$25,284

 

$24,846

 

$99,319

 

$98,070

Interest on securities:
 
 
 
 
 
 
 
Taxable
4,422

 
4,709

 
18,704

 
21,824

Nontaxable
729

 
769

 
3,002

 
3,077

Dividends on corporate stock and Federal Home Loan Bank stock
55

 
34

 
252

 
198

Other interest income
17

 
26

 
69

 
85

Total interest income
30,507

 
30,384

 
121,346

 
123,254

Interest expense:
 
 
 
 
 
 
 
Deposits
3,652

 
4,465

 
15,692

 
20,312

Federal Home Loan Bank advances
4,202

 
4,993

 
18,158

 
22,786

Junior subordinated debentures
393

 
428

 
1,568

 
1,989

Other interest expense
245

 
245

 
973

 
976

Total interest expense
8,492

 
10,131

 
36,391

 
46,063

Net interest income
22,015

 
20,253

 
84,955

 
77,191

Provision for loan losses
1,000

 
1,500

 
4,700

 
6,000

Net interest income after provision for loan losses
21,015

 
18,753

 
80,255

 
71,191

Noninterest income:
 
 
 
 
 
 
 
Wealth management services:
 
 
 
 
 
 
 
Trust and investment advisory fees
5,487

 
5,448

 
22,532

 
20,670

Mutual fund fees
994

 
1,124

 
4,287

 
4,423

Financial planning, commissions and other service fees
444

 
266

 
1,487

 
1,299

Wealth management services
6,925

 
6,838

 
28,306

 
26,392

Service charges on deposit accounts
793

 
921

 
3,455

 
3,587

Merchant processing fees
2,056

 
2,094

 
9,905

 
9,156

Card interchange fees
584

 
592

 
2,249

 
1,975

Income from bank-owned life insurance
493

 
488

 
1,939

 
1,887

Net gains on loan sales and commissions on loans originated for others
2,935

 
2,163

 
5,074

 
4,052

Net realized gains (losses) on securities
501

 
(8
)
 
698

 
729

Net gains (losses) on interest rate swap contracts
12

 
77

 
6

 
(36
)
Equity in gains (losses) of unconsolidated subsidiaries
220

 
(140
)
 
(213
)
 
(337
)
Other income
307

 
383

 
1,536

 
1,485

Noninterest income, excluding other-than-temporary impairment losses
14,826

 
13,408

 
52,955

 
48,890

Total other-than-temporary impairment losses on securities
—

 
—

 
(54
)
 
(245
)
Portion of loss recognized in other comprehensive income (before taxes)
—

 
—

 
(137
)
 
(172
)
Net impairment losses recognized in earnings
—

 
—

 
(191
)
 
(417
)
Total noninterest income
14,826

 
13,408

 
52,764

 
48,473

Noninterest expense:
 
 
 
 
 
 
 
Salaries and employee benefits
13,957

 
12,135

 
51,095

 
47,429

Net occupancy
1,376

 
1,188

 
5,295

 
4,851

Equipment
1,133

 
1,051

 
4,344

 
4,099

Merchant processing costs
1,765

 
1,802

 
8,560

 
7,822

Outsourced services
920

 
840

 
3,530

 
3,304

FDIC deposit insurance costs
429

 
724

 
2,043

 
3,163

Legal, audit and professional fees
538

 
449

 
1,927

 
1,813

Advertising and promotion
478

 
383

 
1,819

 
1,633

Amortization of intangibles
246

 
237

 
951

 
1,091

Foreclosed property costs
329

 
515

 
878

 
841

Debt prepayment penalties
473

 
—

 
694

 
752

Other expenses
3,130

 
2,472

 
9,237

 
8,513

Total noninterest expense
24,774

 
21,796

 
90,373

 
85,311

Income before income taxes
11,067

 
10,365

 
42,646

 
34,353

Income tax expense
3,290

 
3,154

 
12,922

 
10,302

Net income

$7,777

 

$7,211

 

$29,724

 

$24,051

 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
16,288.1

 
16,160.6

 
16,254.0

 
16,113.9

Weighted average common shares outstanding - diluted
16,326.5

 
16,182.7

 
16,283.9

 
16,122.5

Per share information:
Basic earnings per common share

$0.48

 

$0.44

 

$1.82

 

$1.49

 
Diluted earnings per common share

$0.47

 

$0.44

 

$1.82

 

$1.49

 
Cash dividends declared per share

$0.22

 

$0.21

 

$0.88

 

$0.84



Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
At or for the Quarters Ended
(Dollars and shares in thousands, except per share amounts)
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
Dec 31,
2010
Financial Data:
 
 
 
 
 
Total assets

$3,064,098


$2,969,613


$2,936,306


$2,892,272


$2,909,525

Total loans
2,147,159

2,087,759

2,057,152

2,029,637

1,995,638

Total securities
593,392

581,543

591,580

576,158

594,100

Total deposits
2,126,315

2,086,150

1,996,043

2,048,846

2,036,330

Total shareholders' equity
281,351

285,494

281,425

273,885

268,864

Net interest income
22,015

21,549

21,064

20,327

20,253

Provision for loan losses
1,000

1,000

1,200

1,500

1,500

Noninterest income, excluding OTTI losses
14,826

13,114

13,285

11,730

13,408

Net OTTI losses recognized in earnings
—

(158
)
—

(33
)
—

Noninterest expenses
24,774

22,595

22,264

20,740

21,796

Income tax expense
3,290

3,328

3,320

2,984

3,154

Net income
7,777

7,582

7,565

6,800

7,211

 
 
 
 
 
 
Share Data:
 
 
 
 
 
Basic earnings per common share

$0.48


$0.46


$0.46


$0.42


$0.44

Diluted earnings per common share

$0.47


$0.46


$0.46


$0.42


$0.44

Dividends declared per share

$0.22


$0.22


$0.22


$0.22


$0.21

Book value per share

$17.27


$17.54


$17.30


$16.87


$16.63

Tangible book value per share - Non-GAAP (1)

$13.28


$13.53


$13.27


$12.82


$12.55

Market value per share

$23.86


$19.78


$22.97


$23.74


$21.88

 
 
 
 
 
 
Shares outstanding at end of period
16,292.5

16,279.5

16,266.5

16,233.6

16,171.6

Weighted average common shares outstanding-basic
16,288.1

16,277.8

16,251.6

16,197.2

16,160.6

Weighted average common shares outstanding-diluted
16,326.5

16,293.7

16,284.3

16,229.8

16,182.7

 
 
 
 
 
 
Key Ratios:
 
 
 
 
 
Return on average assets
1.04
%
1.03
%
1.04
%
0.94
%
0.99
%
Return on average tangible assets - Non-GAAP (1)
1.07
%
1.06
%
1.07
%
0.96
%
1.01
%
Return on average equity
10.89
%
10.67
%
10.83
%
10.04
%
10.70
%
Return on average tangible equity - Non-GAAP (1)
14.10
%
13.86
%
14.16
%
13.26
%
14.17
%
 
 
 
 
 
 
Capital Ratios:
 
 
 
 
 
Tier 1 risk-based capital
11.61% (i)

11.73
%
11.72
%
11.65
%
11.53
%
Total risk-based capital
12.86% (i)

12.99
%
12.98
%
12.92
%
12.79
%
Tier 1 leverage ratio
8.70% (i)

8.69
%
8.61
%
8.49
%
8.25
%
Equity to assets
9.18
%
9.61
%
9.58
%
9.47
%
9.24
%
Tangible equity to tangible assets - Non-GAAP (1)
7.21
%
7.58
%
7.52
%
7.36
%
7.14
%
        (i) - estimated
 
 
 
 
 
 
 
 
 
 
 
Wealth Management Assets under
 
 
 
 
 
Administration:
 
 
 
 
 
Balance at beginning of period

$3,728,837


$4,148,433


$4,119,207


$3,967,207


$3,744,632

Net investment appreciation (depreciation) & income
215,449

(374,961
)
1,625

145,563

227,168

Net client cash flows
(36,815
)
(44,635
)
27,601

6,437

(4,593
)
Other (2)
(7,410
)
—

—

—

—

Balance at end of period

$3,900,061


$3,728,837


$4,148,433


$4,119,207


$3,967,207


(1)
See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
(2)
Represents declassifications of largely low-fee paying assets from assets under administration due to a change in the nature of client relationships, regarding the scope and/or frequency of services provided by Washington Trust. The impact of this change on wealth management revenues was minimal.




Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
Twelve Months Ended
(Dollars and shares in thousands, except per share amounts)
Dec 31,
2011
Dec 31,
2010
Financial Data:
 
 
Net interest income

$84,955


$77,191

Provision for loan losses
4,700

6,000

Noninterest income, excluding OTTI losses
52,955

48,890

Net OTTI losses recognized in earnings
(191
)
(417
)
Noninterest expenses
90,373

85,311

Income tax expense
12,922

10,302

Net income
29,724

24,051

 
 
 
Share Data:
 
 
Basic earnings per common share

$1.82


$1.49

Diluted earnings per common share

$1.82


$1.49

Dividends declared per share

$0.88


$0.84

 
 
 
Weighted average common shares outstanding - basic
16,254.0

16,113.9

Weighted average common shares outstanding - diluted
16,283.9

16,122.5

 
 
 
Key Ratios:
 
 
Return on average assets
1.02
%
0.82
%
Return on average tangible assets - Non-GAAP (1)
1.04
%
0.84
%
Return on average equity
10.61
%
9.09
%
Return on average tangible equity - Non-GAAP (1)
13.85
%
12.13
%
 
 
 
Asset Quality Data:
 
 
Allowance for Loan Losses:
 
 
Balance at beginning of period

$28,583


$27,400

Provision charged to earnings
4,700

6,000

Charge-offs
(3,834
)
(5,402
)
Recoveries
353

585

Balance at end of period

$29,802


$28,583

 
 
 
Net Loan Charge-Offs:
 
 
Commercial:
Mortgages

$953


$1,152

 
Construction and development
—

—

 
Other
1,374

2,787

Residential:
Mortgages
637

413

 
Homeowner construction
—

—

Consumer
517

465

Total

$3,481


$4,817

 
 
 
Net charge-offs to average loans (annualized)
0.17
%
0.24
%
 
 
 
Wealth Management Assets Under Administration: 
 
 
Balance at beginning of period

$3,967,207


$3,735,646

Net investment (depreciation) appreciation & income
(12,324
)
318,985

Net client cash flows
(47,412
)
18,345

Other (2)
(7,410
)
(105,769
)
Balance at end of period

$3,900,061


$3,967,207


(1)
See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
(2)
Represents declassifications of largely low-fee paying assets from assets under administration due to a change in the nature of client relationships, regarding the scope and/or frequency of services provided by Washington Trust. The impact of this change on wealth management revenues was minimal.



Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
For the Quarters Ended
 
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
Dec 31,
2010
Average Yield / Rate (taxable equivalent basis):
 
 
 
 
 
Assets:
 
 
 
 
 
Commercial and other loans
5.19
%
5.22
%
5.23
%
5.28
%
5.22
%
Residential real estate loans, including mortgage loans
 held for sale
4.46
%
4.58
%
4.72
%
4.79
%
4.76
%
Consumer loans
3.87
%
3.90
%
3.91
%
3.93
%
3.96
%
Total loans
4.74
%
4.80
%
4.86
%
4.91
%
4.87
%
Cash, federal funds sold and other short-term investments
0.19
%
0.20
%
0.15
%
0.22
%
0.21
%
FHLBB stock
0.30
%
0.26
%
0.31
%
0.31
%
—
%
Taxable debt securities
3.58
%
3.78
%
4.01
%
3.93
%
3.79
%
Nontaxable debt securities
5.82
%
5.82
%
5.88
%
5.95
%
5.76
%
Corporate stocks
5.89
%
7.58
%
7.50
%
8.07
%
7.42
%
Total securities
3.88
%
4.07
%
4.28
%
4.23
%
4.08
%
Total interest-earning assets
4.44
%
4.53
%
4.61
%
4.61
%
4.54
%
Liabilities:
 
 
 
 
 
NOW accounts
0.10
%
0.10
%
0.10
%
0.10
%
0.12
%
Money market accounts
0.24
%
0.25
%
0.25
%
0.33
%
0.34
%
Savings accounts
0.12
%
0.12
%
0.12
%
0.14
%
0.14
%
Time deposits
1.45
%
1.48
%
1.57
%
1.61
%
1.65
%
FHLBB advances
3.44
%
3.49
%
3.80
%
4.04
%
4.13
%
Junior subordinated debentures
4.73
%
4.73
%
4.77
%
4.79
%
5.15
%
Other
4.59
%
4.50
%
4.48
%
4.23
%
4.43
%
Total interest-bearing liabilities
1.45
%
1.53
%
1.61
%
1.67
%
1.70
%
 
 
 
 
 
 
Interest rate spread (taxable equivalent basis)
2.99
%
3.00
%
3.00
%
2.94
%
2.84
%
Net interest margin (taxable equivalent basis)
3.22
%
3.22
%
3.21
%
3.16
%
3.05
%

 
At December 31, 2011
 
Amortized
Unrealized
Unrealized
Fair
(Dollars in thousands)
Cost (1)
Gains
Losses
Value
Securities Available for Sale:
 
 
 
 
Obligations of U.S. government-sponsored enterprises

$29,429


$3,404


$—


$32,833

Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
369,946

19,712

—

389,658

States and political subdivisions
74,040

5,453

—

79,493

Trust preferred securities:
 
 
 
 
Individual name issuers
30,639

—

(8,243
)
22,396

Collateralized debt obligations
4,256

—

(3,369
)
887

Corporate bonds
13,872

813

(403
)
14,282

Common stocks
—

—

—

—

Perpetual preferred stocks
1,854

—

(150
)
1,704

Total securities available for sale
524,036

29,382

(12,165
)
541,253

Held to Maturity:
 
 
 
 
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
52,139

360

—

52,499

Total securities held to maturity
52,139

360

—

52,499

Total securities

$576,175


$29,742


($12,165
)

$593,752


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





Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
Period End Balances At
(Dollars in thousands)
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
Dec 31,
2010
Loans:
 
 
 
 
 
Commercial:
Mortgages

$624,813


$573,355


$562,976


$551,069


$518,623

 
Construction & development
10,955

18,518

19,448

34,615

47,335

 
Other
488,860

478,652

491,071

470,704

461,107

 
Total commercial
1,124,628

1,070,525

1,073,495

1,056,388

1,027,065

Residential real estate:
Mortgages
678,582

674,242

644,210

636,916

634,739

 
Homeowner construction
21,832

17,226

14,137

12,241

10,281

 
Total residential real estate
700,414

691,468

658,347

649,157

645,020

Consumer:
Home equity lines
223,430

222,886

223,284

221,003

218,288

 
Home equity loans
43,121

45,354

46,797

48,337

50,624

 
Other
55,566

57,526

55,229

54,752

54,641

 
Total consumer
322,117

325,766

325,310

324,092

323,553

 
Total loans

$2,147,159


$2,087,759


$2,057,152


$2,029,637


$1,995,638


 
At December 31, 2011
(Dollars in thousands)
Balance
% of Total

Commercial Real Estate Loans by Property Location:
 
 
Rhode Island, Connecticut, Massachusetts

$589,083

92.7
%
New York, New Jersey, Pennsylvania
33,317

5.2
%
New Hampshire
11,668

1.8
%
Other
1,700

0.3
%
Total commercial real estate loans (1)

$635,768

100.0
%

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

 
At December 31, 2011
(Dollars in thousands)
Balance
% of Total

Residential Mortgages by Property Location:
 
 
Rhode Island, Connecticut, Massachusetts

$675,935

96.5
%
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia
11,499

1.6
%
Ohio
5,665

0.8
%
California, Washington, Oregon
1,881

0.3
%
Colorado, New Mexico
1,079

0.2
%
Georgia
1,118

0.2
%
New Hampshire
2,767

0.4
%
Wyoming
470

—
%
Total residential mortgages

$700,414

100.0
%

 
Period End Balances At
(Dollars in thousands)
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
Dec 31,
2010
Deposits:
 
 
 
 
 
Demand deposits

$339,809


$319,203


$261,016


$274,798


$228,437

NOW accounts
257,031

242,372

236,162

228,502

241,974

Money market accounts
406,777

374,324

355,096

387,923

396,455

Savings accounts
243,904

239,356

227,014

223,599

220,888

Time deposits
878,794

910,895

916,755

934,024

948,576

Total deposits

$2,126,315


$2,086,150


$1,996,043


$2,048,846


$2,036,330

 
 
 
 
 
 
Out-of-market brokered certificates of deposits

 
 
 
 
  included in time deposits

$90,073


$85,250


$85,659


$51,778


$52,347

In-market deposits, excluding out of market
 
 
 
 
 
  brokered certificates of deposit

$2,036,242


$2,000,900


$1,910,384


$1,997,068


$1,983,983




Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
Period End Balances At
(Dollars in thousands)
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
Dec 31,
2010
Asset Quality Data:
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
Commercial mortgages

$5,709


$6,367


$7,476


$6,068


$6,624

Commercial construction and development
—

—

—

—

—

Other commercial
3,708

2,745

3,152

4,445

5,259

Residential real estate mortgages
10,614

11,352

9,570

8,265

6,414

Consumer
1,206

1,126

780

601

213

Total nonaccrual loans

$21,237


$21,590


$20,978


$19,379


$18,510

Nonaccrual investment securities
887

796

934

752

806

Property acquired through foreclosure or repossession
2,647

2,201

2,189

2,163

3,644

Total nonperforming assets

$24,771


$24,587


$24,101


$22,294


$22,960

 
 
 
 
 
 
Total past due loans to total loans
1.22
%
1.05
%
1.19
%
1.34
%
1.27
%
Nonperforming assets to total assets
0.81
%
0.83
%
0.82
%
0.77
%
0.79
%
Nonaccrual loans to total loans
0.99
%
1.03
%
1.02
%
0.95
%
0.93
%
Allowance for loan losses to nonaccrual loans
140.33
%
137.29
%
139.92
%
150.21
%
154.42
%
Allowance for loan losses to total loans
1.39
%
1.42
%
1.43
%
1.43
%
1.43
%
 
 
 
 
 
 
Troubled Debt Restructured Loans:
 
 
 
 
 
Accruing troubled debt restructured loans
 
 
 
 
 
Commercial mortgages

$6,389


$5,861


$6,552


$10,071


$11,736

Other commercial
6,625

4,059

4,026

4,554

4,594

Residential real estate mortgages
1,481

1,158

2,279

2,724

2,863

Consumer
171

174

317

417

509

Accruing troubled debt restructured loans
14,666

11,252

13,174

17,766

19,702

Nonaccrual troubled debt restructured loans
 
 
 
 
 
Commercial mortgages
91

1,209

2,555

826

1,302

Other commercial
2,154

292

455

526

431

Residential real estate mortgages
2,615

2,686

2,303

1,785

948

Consumer
106

129

131

199

41

Nonaccrual troubled debt restructured loans
4,966

4,316

5,444

3,336

2,722

Total troubled debt restructured loans

$19,632


$15,568


$18,618


$21,102


$22,424





Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
Period End Balances At
(Dollars in thousands)
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
Dec 31,
2010
Past Due Loans:
 
 
 
 
 
Loans 30-59 Days Past Due
 
 
 
 
 
Commercial mortgages

$1,621


$874


$1,507


$3,223


$2,185

Other commercial loans
3,760

1,629

1,783

2,474

1,862

Residential real estate mortgages
3,969

2,145

3,355

2,986

3,073

Consumer loans
1,073

1,100

1,979

1,735

2,005

Loans 30-59 days past due

$10,423


$5,748


$8,624


$10,418


$9,125

 
 
 
 
 
 
Loans 60-89 Days Past Due
 
 
 
 
 
Commercial mortgages

$315


$328


$1,013


$1,626


$514

Other commercial loans
982

103

80

315

953

Residential real estate mortgages
1,505

206

992

1,345

1,477

Consumer loans
263

420

120

335

448

Loans 60-89 days past due

$3,065


$1,057


$2,205


$3,621


$3,392

 
 
 
 
 
 
Loans 90 Days or more Past Due
 
 
 
 
 
Commercial mortgages

$4,995


$5,510


$5,553


$5,242


$5,322

Other commercial loans
633

1,209

1,378

2,524

3,376

Residential real estate mortgages
6,283

7,826

6,549

5,165

4,041

Consumer loans
874

649

245

317

11

Loans 90 days or more past due

$12,785


$15,194


$13,725


$13,248


$12,750

 
 
 
 
 
 
Total Past Due Loans
 
 
 
 
 
Commercial mortgages

$6,931


$6,712


$8,073


$10,091


$8,021

Other commercial loans
5,375

2,941

3,241

5,313

6,191

Residential real estate mortgages
11,757

10,177

10,896

9,496

8,591

Consumer loans
2,210

2,169

2,344

2,387

2,464

Total past due loans

$26,273


$21,999


$24,554


$27,287


$25,267

 
 
 
 
 
 
Nonaccrual loans included in past due loans

$17,588


$16,585


$16,705


$16,456


$14,894


 
For the Quarters Ended
(Dollars in thousands)
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
Dec 31,
2010
Allowance for Loan Losses:
 
 
 
 
 
Balance at beginning of period

$29,641


$29,353


$29,109


$28,583


$28,165

Provision charged to earnings
1,000

1,000

1,200

1,500

1,500

Charge-offs
(920
)
(818
)
(1,044
)
(1,052
)
(1,396
)
Recoveries
81

106

88

78

314

Balance at end of period

$29,802


$29,641


$29,353


$29,109


$28,583

 
 
 
 
 
 
Net Loan Charge-Offs (Recoveries):
 
 
 
 
 
Commercial mortgages

$249


$249


$122


$333


$226

Other commercial
39

286

541

508

695

Residential real estate mortgages
273

100

146

118

(99
)
Consumer
278

77

147

15

260

Total

$839


$712


$956


$974


$1,082





The following tables present average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes, net of the related federal tax benefit. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.
Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
 
 
 
Three months ended December 31,
2011
2010
 
Average
 
Yield/
Average
 
Yield/
(Dollars in thousands)
Balance
Interest
Rate
Balance
Interest
Rate
Assets:
 
 
 
 
 
 
Commercial and other loans

$1,082,834


$14,159

5.19
%

$1,044,263


$13,741

5.22
%
Residential real estate loans, including mortgage loans
 held for sale
717,250

8,065

4.46
%
661,108

7,936

4.76
%
Consumer loans
323,339

3,155

3.87
%
324,703

3,239

3.96
%
Total loans
2,123,423

25,379

4.74
%
2,030,074

24,916

4.87
%
Cash, federal funds sold and other short-term investments
35,429

17

0.19
%
49,381

26

0.21
%
FHLBB stock
42,008

32

0.30
%
42,008

—

—
%
 
 
 
 
 
 
 
Taxable debt securities
490,589

4,422

3.58
%
492,684

4,709

3.79
%
Nontaxable debt securities
75,352

1,105

5.82
%
79,457

1,154

5.76
%
Corporate stocks
2,291

34

5.89
%
2,512

47

7.42
%
Total securities
568,232

5,561

3.88
%
574,653

5,910

4.08
%
Total interest-earning assets
2,769,092

30,989

4.44
%
2,696,116

30,852

4.54
%
Non interest-earning assets
214,556

 
 
216,654

 
 
Total assets

$2,983,648

 
 

$2,912,770

 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
NOW accounts

$243,241


$63

0.10
%

$245,857


$74

0.12
%
Money market accounts
402,652

245

0.24
%
414,425

357

0.34
%
Savings accounts
239,110

70

0.12
%
211,513

72

0.14
%
Time deposits
897,535

3,274

1.45
%
951,545

3,962

1.65
%
FHLBB advances
484,537

4,202

3.44
%
479,703

4,993

4.13
%
Junior subordinated debentures
32,991

393

4.73
%
32,991

428

5.15
%
Other
21,194

245

4.59
%
21,965

245

4.43
%
Total interest-bearing liabilities
2,321,260

8,492

1.45
%
2,357,999

10,131

1.70
%
Demand deposits
330,027

 
 
239,100

 
 
Other liabilities
46,654

 
 
46,101

 
 
Shareholders' equity
285,707

 
 
269,570

 
 
Total liabilities and shareholders' equity

$2,983,648

 
 

$2,912,770

 
 
Net interest income (FTE)
 

$22,497

 
 

$20,721

 
 
 
 
 
 
 
 
Interest rate spread
 
 
2.99
%
 
 
2.84
%
Net interest margin
 
 
3.22
%
 
 
3.05
%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands)
 
 
 
 
 
Three months ended December 31,
2011

2010

Commercial and other loans

$95


$70

Nontaxable debt securities
376

385

Corporate stocks
11

13

  Total

$482


$468






Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
 
 
 
Years ended December 31,
2011
2010
 
Average
 
Yield/
Average
 
Yield/
(Dollars in thousands)
Balance
Interest
Rate
Balance
Interest
Rate
Assets:
 
 
 
 
 
 
Commercial and other loans

$1,063,322


$55,592

5.23
%

$1,019,304


$53,628

5.26
%
Residential real estate loans, including mortgage loans
 held for sale
678,697

31,447

4.63
%
634,735

31,609

4.98
%
Consumer loans
324,002

12,649

3.90
%
327,770

13,062

3.99
%
Total loans
2,066,021

99,688

4.83
%
1,981,809

98,299

4.96
%
Cash, federal funds sold and other short-term investments
35,625

69

0.19
%
41,407

85

0.21
%
FHLBB stock
42,008

124

0.30
%
42,008

—

—
%
 
 
 
 
 
 
 
Taxable debt securities
489,210

18,704

3.82
%
553,531

21,824

3.94
%
Nontaxable debt securities
77,634

4,555

5.87
%
79,491

4,618

5.81
%
Corporate stocks
2,456

177

7.21
%
3,595

274

7.62
%
Total securities
569,300

23,436

4.12
%
636,617

26,716

4.20
%
Total interest-earning assets
2,712,954

123,317

4.55
%
2,701,841

125,100

4.63
%
Non interest-earning assets
214,214

 
 
213,644

 
 
Total assets

$2,927,168

 
 

$2,915,485

 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
NOW accounts

$232,545


$242

0.10
%

$220,875


$268

0.12
%
Money market accounts
392,002

1,051

0.27
%
403,489

1,918

0.48
%
Savings accounts
229,180

286

0.12
%
205,767

318

0.15
%
Time deposits
925,064

14,113

1.53
%
955,222

17,808

1.86
%
FHLBB advances
492,714

18,158

3.69
%
547,974

22,786

4.16
%
Junior subordinated debentures
32,991

1,568

4.75
%
32,991

1,989

6.03
%
Other
21,891

973

4.44
%
21,321

976

4.58
%
Total interest-bearing liabilities
2,326,387

36,391

1.56
%
2,387,639

46,063

1.93
%
Demand deposits
278,120

 
 
221,350

 
 
Other liabilities
42,554

 
 
41,804

 
 
Shareholders' equity
280,107

 
 
264,692

 
 
Total liabilities and shareholders' equity

$2,927,168

 
 

$2,915,485

 
 
Net interest income (FTE)
 

$86,926

 
 

$79,037

 
 
 
 
 
 
 
 
Interest rate spread
 
 
2.99
%
 
 
2.70
%
Net interest margin
 
 
3.20
%
 
 
2.93
%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands)
 
 
 
 
 
Years ended December 31,
2011

2010

Commercial and other loans

$369


$229

Nontaxable debt securities
1,553

1,541

Corporate stocks
49

76

  Total

$1,971


$1,846




Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
 
 
 
At or for the Quarters Ended
(Dollars in thousands, except per share amounts)
Dec 31,
2011
Sep 30,
2011
Jun 30,
2011
Mar 31,
2011
Dec 31,
2010
Calculation of Tangible Book Value per Share:
 
 
 
 
 
Total shareholders' equity at end of period

$281,351


$285,494


$281,425


$273,885


$268,864

Less:
 
 
 
 
 
     Goodwill
58,114

58,114

58,114

58,114

58,114

     Identifiable intangible assets, net
6,901

7,147

7,377

7,614

7,852

Total tangible shareholders' equity at end of period

$216,336


$220,233


$215,934


$208,157


$202,898

 
 
 
 
 
 
Shares outstanding at end of period
16,292.5

16,279.5

16,266.5

16,233.6

16,171.6

 
 
 
 
 
 
Book value per share - GAAP

$17.27


$17.54


$17.30


$16.87


$16.63

Tangible book value per share - Non-GAAP

$13.28


$13.53


$13.27


$12.82


$12.55

 
 
 
 
 
 
Calculation of Tangible Equity to Tangible Assets:
 
 
 
 
 
Total tangible shareholders' equity at end of period

$216,336


$220,233


$215,934


$208,157


$202,898

 
 
 
 
 
 
Total assets at end of period

$3,064,098


$2,969,613


$2,936,306


$2,892,272


$2,909,525

Less:
 
 
 
 
 
     Goodwill
58,114

58,114

58,114

58,114

58,114

     Identifiable intangible assets, net
6,901

7,147

7,377

7,614

7,852

Total tangible assets at end of period

$2,999,083


$2,904,352


$2,870,815


$2,826,544


$2,843,559

 
 
 
 
 
 
Equity to assets - GAAP
9.18
%
9.61
%
9.58
%
9.47
%
9.24
%
Tangible equity to tangible assets - Non-GAAP
7.21
%
7.58
%
7.52
%
7.36
%
7.14
%
 
 
 
 
 
 
Calculation of Return on Average Tangible Assets:
 
 
 
 
 
Net income

$7,777


$7,582


$7,564


$6,800


$7,211

 
 
 
 
 
 
Total average assets

$2,983,648


$2,935,146


$2,904,086


$2,884,618


$2,912,770

Less:
 
 
 
 
 
     Average goodwill
58,114

58,114

58,114

58,114

58,114

     Average identifiable intangible assets, net
7,025

7,257

7,493

7,730

7,967

Total average tangible assets

$2,918,509


$2,869,775


$2,838,479


$2,818,774


$2,846,689

 
 
 
 
 
 
Return on average assets - GAAP
1.04
%
1.03
%
1.04
%
0.94
%
0.99
%
Return on average tangible assets - Non-GAAP
1.07
%
1.06
%
1.07
%
0.96
%
1.01
%
 
 
 
 
 
 
Calculation of Return on Average Tangible Equity:
 
 
 
 
 
Net income

$7,777


$7,582


$7,564


$6,800


$7,211

 
 
 
 
 
 
Total average shareholders' equity

$285,707


$284,244


$279,281


$270,991


$269,570

Less:
 
 
 
 
 
     Average goodwill
58,114

58,114

58,114

58,114

58,114

     Average identifiable intangible assets, net
7,025

7,257

7,493

7,730

7,967

Total average tangible shareholders' equity

$220,568


$218,873


$213,674


$205,147


$203,489

 
 
 
 
 
 
Return on average shareholders' equity - GAAP
10.89
%
10.67
%
10.83
%
10.04
%
10.70
%
Return on average tangible shareholders' equity - Non-GAAP
14.10
%
13.86
%
14.16
%
13.26
%
14.17
%





Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
 
 
 
Years Ended
(Dollars in thousands)
Dec 31,
2011
Dec 31,
2010
Calculation of return on average tangible assets:
 
 
Net income

$29,724


$24,051

 
 
 
Total average assets

$2,927,168


$2,915,485

Less:
 
 
     Average goodwill
58,114

58,114

     Average identifiable intangible assets, net
7,374

8,368

Total average tangible assets

$2,861,680


$2,849,003

 
 
 
Return on average assets - GAAP
1.02
%
0.82
%
Return on average tangible assets - Non-GAAP
1.04
%
0.84
%
 
 
 
 
 
 
Calculation of return on average tangible equity:
 
 
Net income

$29,724


$24,051

 
 
 
Total average shareholders' equity

$280,107


$264,692

Less:
 
 
     Average goodwill
58,114

58,114

     Average identifiable intangible assets, net
7,374

8,368

Total average tangible shareholders' equity

$214,619


$198,210

 
 
 
Return on average shareholders' equity - GAAP
10.61
%
9.09
%
Return on average tangible shareholders' equity - Non-GAAP
13.85
%
12.13
%