Subsequent Event Subsequent Event

12 Months Ended

Dec. 31, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Event

On March 1, 2014, the Corporation sold its merchant processing service business line to a third party. The sale resulted in a gain of approximately $6.3 million; after-tax $4.0 million, or $0.24 per diluted share.  In addition, Washington Trust expects to incur divestiture related costs of approximately $359 thousand; after-tax $230 thousand, or $0.01 per diluted share, in the first quarter of 2014. The Corporation will also have the opportunity to earn additional referral revenues during the ten-year period following the transaction.

Washington Trust has also entered into transactions in March 2014 involving the prepayment of FHLBB advances totaling approximately $99.3 million, resulting in debt prepayment penalty expense of approximately $6.3 million; after-tax $4.0 million, or $0.24 per diluted share.  The weighted average rate of these FHLBB advances was 3.01% with a weighted average remaining term of thirty-six months.  The funding was primarily replaced with lower cost borrowings from other wholesale funding sources and existing on balance sheet liquidity.