EX-99.1 2 exhibit9912014q2.htm EXHIBIT 99.1 Exhibit 99.1 2014 Q2
Exhibit 99.1

NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: July 21, 2014
FOR IMMEDIATE RELEASE

Washington Trust Reports Second Quarter 2014 Earnings

WESTERLY, R.I., July 21, 2014 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $9.8 million, or 58 cents per diluted share, for the second quarter of 2014, up from first quarter of 2014 net income of $9.3 million, or 55 cents per diluted share.

“The momentum continued into the second quarter, as Washington Trust once again posted solid earnings, profitability and growth,” stated Joseph J. MarcAurele, Washington Trust Chairman and CEO.  We had good growth across our business lines and surpassed $5 billion in wealth management assets under administration for the first time in our 214-year history.”

Selected highlights for the second quarter of 2014 included:
•
The returns on average equity and average assets were 11.52% and 1.22%, respectively. Comparable amounts for the first quarter of 2014 were 11.10% and 1.17%, respectively.
•
Loan growth was solid in the quarter, totaling $102.5 million, or 4%.
•
Residential mortgage origination volume was strong, and net gains on loan sales and commissions on loans originated for others increased by $468 thousand, or 38%, on a linked quarter basis.
•
Wealth management assets under administration rose by $204.2 million, or 4%, from the end of March.

Net Interest Income
Net interest income totaled $24.5 million for the second quarter of 2014, up from $23.8 million for the first quarter of 2014. The net interest margin was 3.35% for the second quarter of 2014, compared to 3.34% for the first quarter of 2014. Significant linked quarter changes included:
•
Average interest-earning assets increased by $36.3 million, while the yield on interest-earning assets declined by 5 basis points from the previous quarter. Average loan balances increased by $63.1 million, partially offset by declines in average investment security balances due to matured and called securities, as well as principal payments received on mortgage-backed securities.
•
Average interest-bearing liabilities increased by $45.7 million, while the cost of funds declined by 8 basis points from the previous quarter. Average interest-bearing deposits increased by $95.6 million, offset, in part, by a $50 million decline in average Federal Home Loan Bank of Boston (FHLBB) advances largely due to a prepayment of higher rate advances in March 2014.


Washington Trust
Page 2, April 21, 2014




Noninterest Income
Noninterest income totaled $12.8 million for the second quarter of 2014, compared to $19.4 million for the first quarter of 2014. Included in noninterest income were the following:
•
A net gain of $6.3 million (after-tax $4.0 million, or 24 cents per diluted share) was recognized in the first quarter of 2014 on the sale of the Corporation's merchant processing services business line.
•
Prior to the consummation of this business line sale on March 1, 2014, merchant processing fee revenue of $1.3 million was recognized in the first quarter of 2014. See below regarding corresponding merchant processing expenses.

Excluding these items recognized in the first quarter of 2014, noninterest income increased by $1.0 million, or 8%, compared to the first quarter of 2014. Significant linked quarter changes, on this basis, included the following:
•
Wealth management revenues increased by $465 thousand, or 6%, with increases of $317 thousand in transaction-based revenues and $148 thousand in asset-based revenues. The increase in transaction-based revenues was primarily attributable to a $285 thousand increase in seasonal tax preparation fees, which are typically concentrated in the second quarter.
•
Net gains on loan sales and commissions on loans originated for others increased by $468 thousand, or 38%, reflecting higher levels of mortgage loan origination and sales activity due to a seasonal increase in home purchases, as well as lower market interest rates. Residential mortgage loans sold to the secondary market were $77.0 million in the second quarter, up from $57.0 million in the previous quarter.
•
Net gains on interest rate swap contracts decreased by $297 thousand, or 114%, due to a lower level of customer-related interest rate swap transactions in the second quarter of 2014.
•
Other income increased by $264 thousand, or 64%, and included $160 thousand of non-core income received in the second quarter of 2014.

Noninterest Expenses
Noninterest expenses totaled $22.4 million for the second quarter of 2014, compared to $29.3 million for the first quarter of 2014. Included in noninterest expenses were the following:
•
Debt prepayment penalty expense of $6.3 million (after-tax $4.0 million, or 24 cents per diluted share) was recognized in the first quarter of 2014 on the prepayment of $99.3 million of FHLBB advances in March 2014.
•
Divestiture costs of $355 thousand (after-tax $227 thousand, or 1 cent per diluted share) were expensed in the first quarter of 2014, in connection with the sale of the merchant processing services business line. These costs included $291 thousand in salaries and employee benefit expenses and $64 thousand of legal expenses.
•
Merchant processing expenses of $1.1 million were recognized in the first quarter of 2014, prior to the sale of that business line on March 1, 2014. See above regarding corresponding merchant processing fee revenue.

Excluding these items recognized in the first quarter of 2014, noninterest expenses for the second quarter of 2014 increased by $855 thousand, or 4%, compared to the first quarter of 2014. Significant linked quarter changes, on this basis, included the following:
•
Salaries and employee benefit costs increased by $504 thousand, or 4%, including increased transaction-based compensation due to higher mortgage origination volume.


Washington Trust
Page 3, April 21, 2014



•
Advertising and promotion costs increased by $308 thousand, or 133%, reflecting seasonal promotion efforts.

Income tax expense amounted to $4.6 million for the second quarter of 2014, compared to $4.3 million for the first quarter of 2014. The effective tax rate for the second quarter of 2014 was 31.9%, compared to 31.7% for the first quarter of 2014. Based on current federal and applicable state income tax statutes, the Corporation currently expects the effective tax rate to be approximately 31.8% for the remainder of 2014.

Asset Quality
Total nonaccrual loans amounted to $12.5 million, or 0.49% of total loans, at June 30, 2014, down from $13.6 million, or 0.55%, at March 31, 2014. Total past due loans amounted to $21.1 million, or 0.82% of total loans, at June 30, 2014, compared to $18.0 million, or 0.73%, at March 31, 2014.

The loan loss provision charged to earnings in the second quarter of 2014 totaled $450 thousand, up from $300 thousand in the first quarter of 2014. Net charge-offs amounted to $224 thousand in the second quarter of 2014. Net charge-offs totaled $1.1 million in the first quarter of 2014 and was largely comprised of a $853 thousand charge-off on one commercial mortgage relationship. The allowance for loan losses was $27.3 million, or 1.06% of total loans, at June 30, 2014, compared to $27.0 million, or 1.09% of total loans, at March 31, 2014.

Loans
Total loans amounted to $2.58 billion at June 30, 2014, up by $102.5 million, or 4%, from the balance at March 31, 2014. This increase was comprised of the following:
•
The residential real estate loan portfolio grew by $66.2 million, or 8%.
•
Total commercial loans increased by $28.9 million, or 2%. The commercial and industrial loan portfolio grew by $31.1 million, while the commercial real estate portfolio declined by a modest $2.2 million.
•
Consumer loans increased by $7.4 million, or 2%, concentrated in home equity lines and loans.

Investment Securities
The securities portfolio amounted to $355.4 million, or 11% of total assets, at June 30, 2014, compared to $389.9 million, or 12%, at March 31, 2014. The decrease of $34.5 million was largely due to the maturity of a $29.5 million U.S. Government Agency security, $5.3 million of called securities of state and political subdivisions and principal payments received on mortgage-backed securities.

Deposits and Borrowings
Deposits totaled $2.59 billion at June 30, 2014, down by $5.6 million, or 0.2%, from the balance at March 31, 2014. This decrease was comprised of the following:
•
Demand deposit and NOW account balances declined by $31.4 million, or 4%.
•
Money market and savings account balances increased by $66.4 million, or 7%.
•
Time deposits declined by $40.6 million, or 5%.



Washington Trust
Page 4, April 21, 2014



FHLBB advances increased by $118.6 million from March 31, 2014, primarily to fund loan growth.

Capital Management
Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.24% at June 30, 2014, compared to 13.56% at March 31, 2014. Total shareholder's equity was $343.5 million at June 30, 2014, up by $7.6 million from March 31, 2014.

Dividends Declared
The Board of Directors declared a quarterly dividend of 29 cents per share for the quarter ended June 30, 2014. The dividend was paid on July 11, 2014 to shareholders of record on July 1, 2014.

Conference Call
Washington Trust will host a conference call to discuss second quarter results, business highlights and outlook on Tuesday, July 22, 2014 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-877-259-5243. An audio replay of the call will be available by dialing 1-877-344-7529 and entering Conference Number 10048168; the audio replay will be available until 9:00 a.m. on August 6, 2014. A webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrustbancorp.com, shortly after the conclusion of the call and will be available through September 30, 2014.

Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ OMX® under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrustbancorp.com.

Forward-Looking Statements
This press release contains 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 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: continued weakness in national, regional or local economies; reductions in net interest income resulting from a sustained low interest rate environment 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 Corporation's competition; changes in legislation or regulation and accounting principles, policies and guidelines; 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, as filed with the SEC and as updated by our Quarterly Reports on Form 10-Q and other SEC filings, 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 we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.



Washington Trust
Page 5, April 21, 2014



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)
 
Jun 30,
2014
 
Dec 31,
2013
Assets:
 
 
 
 
Cash and due from banks
 

$145,408

 

$81,939

Short-term investments
 
3,781

 
3,378

Mortgage loans held for sale, at fair value
 
22,407

 
11,636

Securities:
 
 
 
 
Available for sale, at fair value
 
327,578

 
392,903

Held to maturity, at amortized cost (fair value $28,618 in 2014 and $29,865 in 2013)
 
27,814

 
29,905

Total securities
 
355,392

 
422,808

Federal Home Loan Bank stock, at cost
 
37,730

 
37,730

Loans:
 
 
 
 
Commercial
 
1,366,170

 
1,363,335

Residential real estate
 
876,639

 
772,674

Consumer
 
338,315

 
326,875

Total loans
 
2,581,124

 
2,462,884

Less allowance for loan losses
 
27,269

 
27,886

Net loans
 
2,553,855

 
2,434,998

Premises and equipment, net
 
26,518

 
25,402

Investment in bank-owned life insurance
 
57,559

 
56,673

Goodwill
 
58,114

 
58,114

Identifiable intangible assets, net
 
5,165

 
5,493

Other assets
 
51,093

 
50,696

Total assets
 

$3,317,022

 

$3,188,867

Liabilities:
 
 
 
 
Deposits:
 
 
 
 
Demand deposits
 

$411,586

 

$440,785

NOW accounts
 
314,060

 
309,771

Money market accounts
 
772,084

 
666,646

Savings accounts
 
292,112

 
297,357

Time deposits
 
796,255

 
790,762

Total deposits
 
2,586,097

 
2,505,321

Federal Home Loan Bank advances
 
322,056

 
288,082

Junior subordinated debentures
 
22,681

 
22,681

Other liabilities
 
42,738

 
43,137

Total liabilities
 
2,973,572

 
2,859,221

Shareholders’ Equity:
 
 
 
 
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,705,427 shares in 2014 and 16,613,561 shares in 2013
 
1,044

 
1,038

Paid-in capital
 
99,288

 
97,566

Retained earnings
 
241,918

 
232,595

Accumulated other comprehensive loss
 
1,200

 
(1,553
)
Total shareholders’ equity
 
343,450

 
329,646

Total liabilities and shareholders’ equity
 

$3,317,022

 

$3,188,867







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,
2014

 
2013

 
2014
 
2013
Interest income:
 
 
 
 
 
 
 
Interest and fees on loans
 

$26,169

 

$25,513

 

$51,758

 

$50,736

Interest on securities:
Taxable
2,699

 
2,576

 
5,641

 
5,421

 
Nontaxable
557

 
647

 
1,139

 
1,306

Dividends on Federal Home Loan Bank stock
138

 
39

 
280

 
77

Other interest income
28

 
24

 
63

 
52

Total interest and dividend income
29,591

 
28,799

 
58,881

 
57,592

Interest expense:


 


 


 


Deposits
3,120

 
3,096

 
6,089

 
6,290

Federal Home Loan Bank advances
1,758

 
2,679

 
3,999

 
5,416

Junior subordinated debentures
241

 
612

 
482

 
1,002

Other interest expense
4

 
3

 
7

 
8

Total interest expense
5,123

 
6,390

 
10,577

 
12,716

Net interest income
24,468

 
22,409

 
48,304

 
44,876

Provision for loan losses
450

 
700

 
750

 
1,300

Net interest income after provision for loan losses
24,018

 
21,709

 
47,554

 
43,576

Noninterest income:


 


 


 


Wealth management revenues
8,530

 
7,912

 
16,595

 
15,386

Merchant processing fees
—

 
2,613

 
1,291

 
4,590

Net gains on loan sales and commissions on loans originated for others
1,707

 
3,485

 
2,946

 
7,651

Service charges on deposit accounts
824

 
790

 
1,578

 
1,581

Card interchange fees
779

 
683

 
1,460

 
1,282

Income from bank-owned life insurance
441

 
461

 
886

 
928

Net gains on interest rate swap contracts
(37
)
 
152

 
223

 
171

Equity in earnings (losses) of unconsolidated subsidiaries
(107
)
 
(57
)
 
(150
)
 
(18
)
Gain on sale of business line
—

 
—

 
6,265

 
—

Other income
677

 
355

 
1,090

 
761

Noninterest income, excluding other-than-temporary impairment losses
12,814

 
16,394

 
32,184

 
32,332

Total other-than-temporary impairment losses on securities
—

 
—

 
—

 
(613
)
Portion of loss recognized in other comprehensive income (before tax)
—

 
—

 
—

 
(2,159
)
Net impairment losses recognized in earnings
—

 
—

 
—

 
(2,772
)
Total noninterest income
12,814

 
16,394

 
32,184

 
29,560

Noninterest expense:


 


 


 


Salaries and employee benefits
14,771

 
15,542

 
29,329

 
30,984

Net occupancy
1,475

 
1,364

 
3,115

 
2,878

Equipment
1,235

 
1,192

 
2,471

 
2,436

Merchant processing costs
—

 
2,211

 
1,050

 
3,884

Outsourced services
1,015

 
871

 
2,059

 
1,712

Legal, audit and professional fees
598

 
554

 
1,216

 
1,162

FDIC deposit insurance costs
413

 
451

 
853

 
882

Advertising and promotion
540

 
476

 
772

 
831

Amortization of intangibles
164

 
173

 
328

 
346

Foreclosed property costs
43

 
137

 
21

 
184

Debt prepayment penalties
—

 
—

 
6,294

 
—

Other expenses
2,194

 
2,034

 
4,232

 
3,890

Total noninterest expense
22,448

 
25,005

 
51,740

 
49,189

Income before income taxes
14,384

 
13,098

 
27,998

 
23,947

Income tax expense
4,587

 
4,115

 
8,903

 
7,543

Net income

$9,797

 

$8,983

 

$19,095

 

$16,404

 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
16,678

 
16,454

 
16,653

 
16,428

Weighted average common shares outstanding - diluted
16,831

 
16,581

 
16,817

 
16,558

Per share information:
Basic earnings per common share

$0.59

 

$0.54

 

$1.14

 

$0.99

 
Diluted earnings per common share

$0.58

 

$0.54

 

$1.13

 

$0.99

 
Cash dividends declared per share

$0.29

 

$0.25

 

$0.58

 

$0.50






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)
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Jun 30,
2013
Financial Data:
 
 
 
 
 
Total assets

$3,317,022


$3,194,146


$3,188,867


$3,131,958


$3,061,307

Total loans
2,581,124

2,478,603

2,462,884

2,353,766

2,384,980

Total securities
355,392

389,889

422,808

419,349

350,517

Total deposits
2,586,097

2,591,654

2,505,321

2,454,831

2,304,609

Total shareholders' equity
343,450

335,858

329,646

323,585

303,370

Net interest income
24,468

23,836

23,521

23,388

22,409

Provision for loan losses
450

300

400

700

700

Noninterest income, excluding OTTI losses
12,814

19,370

15,837

17,400

16,394

Net OTTI losses recognized in earnings
—

—

(717
)
—

—

Noninterest expense
22,448

29,292

24,048

25,548

25,005

Income tax expense
4,587

4,316

4,404

4,580

4,115

Net income
9,797

9,298

9,789

9,960

8,983

 
 
 
 
 
 
Share Data:
 
 
 
 
 
Basic earnings per common share

$0.59


$0.56


$0.59


$0.60


$0.54

Diluted earnings per common share

$0.58


$0.55


$0.58


$0.59


$0.54

Dividends declared per share

$0.29


$0.29


$0.27


$0.26


$0.25

Book value per share

$20.56


$20.19


$19.84


$19.51


$18.40

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

$16.77


$16.38


$16.01


$15.66


$14.52

Market value per share

$36.77


$37.47


$37.22


$31.43


$28.52

Shares outstanding at end of period
16,705

16,635

16,614

16,589

16,487

Weighted average common shares outstanding - basic
16,678

16,626

16,602

16,563

16,454

Weighted average common shares outstanding - diluted
16,831

16,800

16,770

16,696

16,581

 
 
 
 
 
 
Key Ratios:
 
 
 
 
 
Return on average assets
1.22
%
1.17
%
1.24
%
1.29
%
1.18
%
Return on average tangible assets - Non-GAAP (1)
1.24
%
1.20
%
1.26
%
1.31
%
1.21
%
Return on average equity
11.52
%
11.10
%
11.98
%
12.82
%
11.84
%
Return on average tangible equity - Non-GAAP (1)
14.15
%
13.70
%
14.80
%
16.13
%
15.01
%
Tier 1 risk-based capital
12.13% (i)

12.42
%
12.12
%
12.23
%
11.85
%
Total risk-based capital
13.24% (i)

13.56
%
13.29
%
13.44
%
13.06
%
Tier 1 leverage ratio
9.62% (i)

9.56
%
9.41
%
9.41
%
9.32
%
Equity to assets
10.35
%
10.51
%
10.34
%
10.33
%
9.91
%
Tangible equity to tangible assets - Non-GAAP (1)
8.61
%
8.70
%
8.51
%
8.47
%
7.99
%
(i) - estimated
 
 
 
 
 
 
 
 
 
 
 
Wealth Management Revenues:
 
 
 
 
 
Trust and investment management fees

$6,828


$6,685


$6,637


$6,291


$6,230

Mutual fund fees
1,086

1,081

1,104

1,075

1,077

   Asset-based revenues
7,914

7,766

7,741

7,366

7,307

Transaction-based revenues
616

299

1,069

263

605

Total wealth management revenues

$8,530


$8,065


$8,810


$7,629


$7,912

 
 
 
 
 
 
Wealth Management Assets Under Administration:
 
 
 
 
 
Balance at beginning of period

$4,806,381


$4,781,958


$4,595,594


$4,433,574


$4,420,076

Net investment appreciation (depreciation) & income
131,269

44,335

248,727

190,931

(20,956
)
Net client cash flows
72,938

(19,912
)
(62,363
)
(28,911
)
34,454

Balance at end of period

$5,010,588


$4,806,381


$4,781,958


$4,595,594


$4,433,574

(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)
 
Six Months Ended
(Dollars and shares in thousands, except per share amounts)
Jun 30,
2014
 
Jun 30,
2013
Key Ratios:
 
 
 
Return on average assets
1.13
%
 
1.08
%
Return on average tangible assets - Non-GAAP (1)
1.22
%
 
1.11
%
Return on average equity
11.31
%
 
10.88
%
Return on average tangible equity - Non-GAAP (1)
13.93
%
 
13.82
%
 
 
 
 
Allowance for Loan Losses:
 
 
 
Balance at beginning of period

$27,886

 

$30,873

Provision charged to earnings
750

 
1,300

Charge-offs
(1,490
)
 
(4,549
)
Recoveries
123

 
260

Balance at end of period

$27,269

 

$27,884

 
 
 
 
Net Loan Charge-Offs (Recoveries):
 
 
 
Commercial mortgages

$965

 

$3,922

Other commercial
265

 
134

Residential real estate mortgages
37

 
45

Consumer
100

 
188

Total

$1,367

 

$4,289

 
 
 
 
Net charge-offs to average loans (annualized)
0.11
%
 
0.37
%
 
 
 
 
Wealth Management Revenues:
 
 
 
Trust and investment management fees

$13,513

 

$12,296

Mutual fund fees
2,167

 
2,099

   Asset-based revenues
15,680

 
14,395

Transaction-based revenues
915

 
991

Total wealth management revenues

$16,595

 

$15,386

 
 
 
 
Wealth Management Assets Under Administration: 
 
 
 
Balance at beginning of period

$4,781,958

 

$4,199,640

Net investment appreciation & income
175,604

 
193,023

Net client cash flows
53,026

 
40,911

Balance at end of period

$5,010,588

 

$4,433,574

(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
 
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
Sep 30,
2013
 
Jun 30,
2013
Average Yield / Rate (taxable equivalent basis):
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
Commercial loans
4.35
%
 
4.43
%
 
4.52
%
 
4.67
%
 
4.58
%
Residential real estate loans, including mortgage loans held for sale
4.12
%
 
4.15
%
 
4.09
%
 
4.06
%
 
4.14
%
Consumer loans
3.81
%
 
3.83
%
 
3.77
%
 
3.78
%
 
3.81
%
Total loans
4.20
%
 
4.26
%
 
4.28
%
 
4.35
%
 
4.34
%
Cash, federal funds sold and other short-term investments
0.19
%
 
0.23
%
 
0.22
%
 
0.21
%
 
0.22
%
FHLBB stock
1.47
%
 
1.53
%
 
0.37
%
 
0.38
%
 
0.42
%
Taxable debt securities
3.36
%
 
3.47
%
 
3.40
%
 
3.44
%
 
3.52
%
Nontaxable debt securities
5.92
%
 
5.98
%
 
5.88
%
 
5.87
%
 
5.94
%
Total securities
3.74
%
 
3.84
%
 
3.78
%
 
3.88
%
 
3.97
%
Total interest-earning assets
4.03
%
 
4.08
%
 
4.02
%
 
4.12
%
 
4.17
%
Liabilities:
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
—
%
 
—
%
 
—
%
 
—
%
 
—
%
NOW accounts
0.06
%
 
0.06
%
 
0.06
%
 
0.06
%
 
0.06
%
Money market accounts
0.38
%
 
0.36
%
 
0.34
%
 
0.31
%
 
0.29
%
Savings accounts
0.06
%
 
0.06
%
 
0.06
%
 
0.06
%
 
0.07
%
Time deposits
1.14
%
 
1.15
%
 
1.19
%
 
1.23
%
 
1.25
%
FHLBB advances
3.20
%
 
3.37
%
 
3.49
%
 
3.25
%
 
3.29
%
Junior subordinated debentures
4.26
%
 
4.31
%
 
4.22
%
 
4.22
%
 
7.82
%
Other
9.90
%
 
7.03
%
 
2.52
%
 
4.50
%
 
5.87
%
Total interest-bearing liabilities
0.85
%
 
0.93
%
 
0.98
%
 
1.01
%
 
1.11
%
 
 
 
 
 
 
 
 
 
 
Interest rate spread (taxable equivalent basis)
3.18
%
 
3.15
%
 
3.04
%
 
3.11
%
 
3.06
%
Net interest margin (taxable equivalent basis)
3.35
%
 
3.34
%
 
3.24
%
 
3.29
%
 
3.26
%

 
 
At June 30, 2014
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
(Dollars in thousands)
 
Cost (1)
 
Gains
 
Losses
 
Value
Securities Available for Sale:
 
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises
 

$9,999

 

$13

 

$—

 

$10,012

Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
 
217,767

 
10,531

 
(13
)
 
228,285

Obligations of states and political subdivisions
 
54,161

 
2,230

 
—

 
56,391

Individual name issuer trust preferred debt securities
 
30,734

 
—

 
(4,099
)
 
26,635

Corporate bonds
 
6,123

 
133

 
(1
)
 
6,255

Total securities available for sale
 
318,784

 
12,907

 
(4,113
)
 
327,578

Held to Maturity:
 
 
 
 
 
 
 
 
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
 
27,814

 
804

 
—

 
28,618

Total securities held to maturity
 
27,814

 
804

 
—

 
28,618

Total securities
 

$346,598

 

$13,711

 

($4,113
)
 

$356,196

(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)
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Jun 30,
2013
Loans:
 
 
 
 
 
Commercial:
Mortgages

$772,772


$788,836


$796,249


$727,375


$758,437

 
Construction & development
38,574

24,696

36,289

51,951

39,449

 
Other
554,824

523,751

530,797

518,566

512,228

 
Total commercial
1,366,170

1,337,283

1,363,335

1,297,892

1,310,114

Residential real estate:
Mortgages
846,187

784,623

749,163

711,427

728,158

 
Homeowner construction
30,452

25,770

23,511

20,265

20,713

 
Total residential real estate
876,639

810,393

772,674

731,692

748,871

Consumer:
Home equity lines
237,390

233,728

231,362

227,063

228,367

 
Home equity loans
45,632

41,991

40,212

41,158

41,312

 
Other
55,293

55,208

55,301

55,961

56,316

 
Total consumer
338,315

330,927

326,875

324,182

325,995

 
Total loans

$2,581,124


$2,478,603


$2,462,884


$2,353,766


$2,384,980

 
At June 30, 2014
(Dollars in thousands)
Balance

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

$773,099

95.2
%
New York, New Jersey
29,620

3.7
%
New Hampshire
8,627

1.1
%
Total commercial real estate loans (1)

$811,346

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, 2014
(Dollars in thousands)
Balance
% of Total
Residential Mortgages by Property Location:
 
 
Rhode Island, Connecticut, Massachusetts

$854,596

97.3
%
New Hampshire
10,605

1.2
%
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia
5,872

0.7
%
Ohio
2,237

0.3
%
Washington, Oregon
1,344

0.2
%
Georgia
1,072

0.1
%
New Mexico
464

0.1
%
Other
449

0.1
%
Total residential mortgages

$876,639

100.0
%
 
 
Period End Balances At
(Dollars in thousands)
 
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Jun 30,
2013
Deposits:
 
 
 
 
 
 
Demand deposits
 

$411,586


$445,570


$440,785


$420,075


$358,797

NOW accounts
 
314,060

311,461

309,771

301,250

301,096

Money market accounts
 
772,084

704,434

666,646

623,631

540,012

Savings accounts
 
292,112

293,322

297,357

292,765

293,405

Time deposits
 
796,255

836,867

790,762

817,110

811,299

Total deposits
 

$2,586,097


$2,591,654


$2,505,321


$2,454,831


$2,304,609

 
 
 
 
 
 
 
Out-of-market brokered certificates of deposits included in time deposits
 

$171,216


$171,275


$98,009


$106,231


$96,177

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

$2,414,881


$2,420,379


$2,407,312


$2,348,600


$2,208,432






Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
Period End Balances At
(Dollars in thousands)
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
Sep 30,
2013
 
Jun 30,
2013
Asset Quality Data:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$2,290

 

$2,293

 

$7,492

 

$8,956

 

$9,976

Commercial construction and development
—

 
—

 
—

 
—

 
—

Other commercial
1,615

 
1,198

 
1,291

 
1,248

 
1,400

Residential real estate mortgages
7,417

 
8,975

 
8,315

 
8,095

 
7,526

Consumer
1,213

 
1,108

 
1,204

 
1,204

 
1,124

Total nonaccrual loans
12,535

 
13,574

 
18,302

 
19,503

 
20,026

Nonaccrual investment securities
—

 
—

 
547

 
425

 
397

Property acquired through foreclosure or repossession
1,309

 
750

 
932

 
594

 
1,230

Total nonperforming assets

$13,844

 

$14,324

 

$19,781

 

$20,522

 

$21,653

 
 
 
 
 
 
 
 
 
 
Total past due loans to total loans
0.82
%
 
0.73
%
 
0.89
%
 
1.02
%
 
1.09
%
Nonperforming assets to total assets
0.42
%
 
0.45
%
 
0.62
%
 
0.66
%
 
0.71
%
Nonaccrual loans to total loans
0.49
%
 
0.55
%
 
0.74
%
 
0.83
%
 
0.84
%
Allowance for loan losses to nonaccrual loans
217.54
%
 
199.23
%
 
152.37
%
 
143.61
%
 
139.24
%
Allowance for loan losses to total loans
1.06
%
 
1.09
%
 
1.13
%
 
1.19
%
 
1.17
%
 
 
 
 
 
 
 
 
 
 
Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
 
 
Accruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$22,603

 

$22,796

 

$22,800

 

$23,892

 

$19,018

Other commercial
969

 
989

 
1,265

 
1,576

 
2,602

Residential real estate mortgages
1,459

 
1,467

 
1,442

 
870

 
876

Consumer
167

 
233

 
236

 
239

 
242

Accruing troubled debt restructured loans
25,198

 
25,485

 
25,743

 
26,577

 
22,738

Nonaccrual troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial mortgages
—

 
—

 
—

 
—

 
—

Other commercial
872

 
369

 
542

 
547

 
590

Residential real estate mortgages
448

 
447

 
—

 
—

 
144

Consumer
—

 
29

 
38

 
40

 
42

Nonaccrual troubled debt restructured loans
1,320

 
845

 
580

 
587

 
776

Total troubled debt restructured loans

$26,518

 

$26,330

 

$26,323

 

$27,164

 

$23,514







Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
Period End Balances At
(Dollars in thousands)
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
Sep 30,
2013
 
Jun 30,
2013
Past Due Loans:
 
 
 
 
 
 
 
 
 
Loans 30-59 Days Past Due:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$311

 

$—

 

$—

 

$—

 

$—

Other commercial loans
1,785

 
3,351

 
276

 
2,648

 
505

Residential real estate mortgages
5,249

 
2,232

 
4,040

 
2,624

 
4,051

Consumer loans
1,889

 
1,365

 
1,322

 
1,013

 
1,588

Loans 30-59 days past due

$9,234

 

$6,948

 

$5,638

 

$6,285

 

$6,144

 
 
 
 
 
 
 
 
 
 
Loans 60-89 Days Past Due:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$1,583

 

$15

 

$—

 

$730

 

$536

Other commercial loans
773

 
127

 
302

 
8

 
34

Residential real estate mortgages
855

 
1,265

 
1,285

 
1,960

 
1,697

Consumer loans
1,102

 
658

 
166

 
328

 
689

Loans 60-89 days past due

$4,313

 

$2,065

 

$1,753

 

$3,026

 

$2,956

 
 
 
 
 
 
 
 
 
 
Loans 90 Days or more Past Due:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$2,250

 

$2,238

 

$7,492

 

$8,226

 

$8,895

Other commercial loans
417

 
428

 
731

 
929

 
3,428

Residential real estate mortgages
4,335

 
5,634

 
5,633

 
4,843

 
4,266

Consumer loans
512

 
701

 
656

 
693

 
415

Loans 90 days or more past due

$7,514

 

$9,001

 

$14,512

 

$14,691

 

$17,004

 
 
 
 
 
 
 
 
 
 
Total Past Due Loans:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$4,144

 

$2,253

 

$7,492

 

$8,956

 

$9,431

Other commercial loans
2,975

 
3,906

 
1,309

 
3,585

 
3,967

Residential real estate mortgages
10,439

 
9,131

 
10,958

 
9,427

 
10,014

Consumer loans
3,503

 
2,724

 
2,144

 
2,034

 
2,692

Total past due loans

$21,061

 

$18,014

 

$21,903

 

$24,002

 

$26,104

 
 
 
 
 
 
 
 
 
 
Accruing loans 90 days or more past due

$—

 

$—

 

$—

 

$—

 

$2,431

Nonaccrual loans included in past due loans

$10,432

 

$11,487

 

$15,591

 

$17,275

 

$17,208


 
For the Quarters Ended
(Dollars in thousands)
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
Sep 30,
2013
 
Jun 30,
2013
Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
Balance at beginning of period

$27,043

 

$27,886

 

$28,008

 

$27,884

 

$31,139

Provision charged to earnings
450

 
300

 
400

 
700

 
700

Charge-offs
(267
)
 
(1,223
)
 
(703
)
 
(770
)
 
(4,175
)
Recoveries
43

 
80

 
181

 
194

 
220

Balance at end of period

$27,269

 

$27,043

 

$27,886

 

$28,008

 

$27,884

 
 
 
 
 
 
 
 
 
 
Net Loan Charge-Offs (Recoveries):
 
 
 
 
 
 
 
 
 
Commercial mortgages

$26

 

$939

 

$309

 

$602

 

$3,814

Other commercial
95

 
170

 
73

 
(2
)
 
63

Residential real estate mortgages
30

 
7

 
80

 
—

 
36

Consumer
73

 
27

 
60

 
(24
)
 
42

Total

$224

 

$1,143

 

$522

 

$576

 

$3,955






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, 2014
 
March 31, 2014
 
June 30, 2013
 
 
Average Balance
Interest
Yield/
Rate
 
Average Balance
Interest
Yield/
Rate
 
Average Balance
Interest
Yield/
 Rate
(Dollars in thousands)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans
 

$1,339,310


$14,509

4.35
%
 

$1,336,798


$14,601

4.43
%
 

$1,291,244


$14,747

4.58
%
Residential real estate loans, including loans held for sale
 
856,955

8,811

4.12
%
 
802,412

8,208

4.15
%
 
762,363

7,877

4.14
%
Consumer loans
 
333,881

3,171

3.81
%
 
327,793

3,097

3.83
%
 
325,539

3,090

3.81
%
Total loans
 
2,530,146

26,491

4.20
%
 
2,467,003

25,906

4.26
%
 
2,379,146

25,714

4.34
%
Cash, federal funds sold and short-term investments
 
59,507

28

0.19
%
 
62,246

35

0.23
%
 
44,690

24

0.22
%
FHLBB stock
 
37,730

138

1.47
%
 
37,730

142

1.53
%
 
37,730

39

0.42
%
Taxable debt securities
 
322,418

2,699

3.36
%
 
344,009

2,942

3.47
%
 
293,586

2,576

3.52
%
Nontaxable debt securities
 
57,422

847

5.92
%
 
59,958

884

5.98
%
 
66,468

985

5.94
%
Total securities
 
379,840

3,546

3.74
%
 
403,967

3,826

3.84
%
 
360,054

3,561

3.97
%
Total interest-earning assets
 
3,007,223

30,203

4.03
%
 
2,970,946

29,909

4.08
%
 
2,821,620

29,338

4.17
%
Noninterest-earning assets
 
207,426

 
 
 
203,335

 
 
 
213,336

 
 
Total assets
 

$3,214,649

 
 
 

$3,174,281

 
 
 

$3,034,956

 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 

$9,067


$—

—
%
 

$10,767


$—

—
%
 

$135


$—

—
%
NOW accounts
 
311,948

47

0.06
%
 
304,201

47

0.06
%
 
289,858

45

0.06
%
Money market accounts
 
759,704

713

0.38
%
 
685,142

609

0.36
%
 
535,107

381

0.29
%
Savings accounts
 
291,671

45

0.06
%
 
292,809

45

0.06
%
 
286,547

47

0.07
%
Time deposits
 
813,558

2,315

1.14
%
 
797,458

2,268

1.15
%
 
843,462

2,623

1.25
%
FHLBB advances
 
220,088

1,758

3.20
%
 
269,989

2,241

3.37
%
 
326,839

2,679

3.29
%
Junior subordinated debentures
 
22,681

241

4.26
%
 
22,681

241

4.31
%
 
31,405

612

7.82
%
Other
 
162

4

9.90
%
 
173

3

7.03
%
 
205

3

5.87
%
Total interest-bearing liabilities
 
2,428,879

5,123

0.85
%
 
2,383,220

5,454

0.93
%
 
2,313,558

6,390

1.11
%
Demand deposits
 
409,851

 
 
 
422,975

 
 
 
365,747

 
 
Other liabilities
 
35,684

 
 
 
33,057

 
 
 
52,249

 
 
Shareholders' equity
 
340,235

 
 
 
335,029

 
 
 
303,402

 
 
Total liabilities and shareholders' equity
 

$3,214,649

 
 
 

$3,174,281

 
 
 

$3,034,956

 
 
Net interest income (FTE)
 
 

$25,080

 
 
 

$24,455

 
 
 

$22,948

 
Interest rate spread
 
 
 
3.18
%
 
 
 
3.15
%
 
 
 
3.06
%
Net interest margin
 
 
 
3.35
%
 
 
 
3.34
%
 
 
 
3.26
%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands)
Three Months Ended
 
Jun 30, 2014
 
Mar 31, 2014
 
Jun 30, 2013
Commercial loans

$322

 

$317

 

$201

Nontaxable debt securities
290

 
302

 
338

Total

$612

 

$619

 

$539






 
Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
 
 
Six Months Ended
 
 
June 30, 2014
 
June 30, 2013
 
 
Average Balance
Interest
Yield/
Rate
 
Average Balance
Interest
Yield/
 Rate
(Dollars in thousands)
 
Assets:
 
 
 
 
 
 
 
 
Commercial loans
 

$1,338,061


$29,109

4.39
%
 

$1,267,612


$29,168

4.64
%
Residential real estate loans, including loans held for sale
 
829,834

17,019

4.14
%
 
758,964

15,814

4.20
%
Consumer loans
 
330,854

6,268

3.82
%
 
324,111

6,143

3.82
%
Total loans
 
2,498,749

52,396

4.23
%
 
2,350,687

51,125

4.39
%
Cash, federal funds sold and short-term investments
 
60,869

63

0.21
%
 
49,186

52

0.21
%
FHLBB stock
 
37,730

280

1.50
%
 
38,755

77

0.40
%
Taxable debt securities
 
333,154

5,641

3.41
%
 
308,576

5,421

3.54
%
Nontaxable debt securities
 
58,683

1,731

5.95
%
 
67,261

1,989

5.96
%
Total securities
 
391,837

7,372

3.79
%
 
375,837

7,410

3.98
%
Total interest-earning assets
 
2,989,185

60,111

4.06
%
 
2,814,465

58,664

4.20
%
Noninterest-earning assets
 
205,391

 
 
 
211,845

 
 
Total assets
 

$3,194,576

 
 
 

$3,026,310

 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 

$9,912


$—

—
%
 

$68


$—

—
%
NOW accounts
 
308,096

94

0.06
%
 
286,450

90

0.06
%
Money market accounts
 
722,629

1,322

0.37
%
 
515,390

732

0.29
%
Savings accounts
 
292,237

90

0.06
%
 
283,059

93

0.07
%
Time deposits
 
805,553

4,583

1.15
%
 
856,447

5,375

1.27
%
FHLBB advances
 
244,900

3,999

3.29
%
 
336,004

5,416

3.25
%
Junior subordinated debentures
 
22,681

482

4.29
%
 
32,194

1,002

6.28
%
Other
 
168

7

8.40
%
 
673

8

2.40
%
Total interest-bearing liabilities
 
2,406,176

10,577

0.89
%
 
2,310,285

12,716

1.11
%
Demand deposits
 
416,377

 
 
 
363,313

 
 
Other liabilities
 
34,377

 
 
 
51,282

 
 
Shareholders' equity
 
337,646

 
 
 
301,430

 
 
Total liabilities and shareholders' equity
 

$3,194,576

 
 
 

$3,026,310

 
 
Net interest income (FTE)
 
 

$49,534

 
 
 

$45,948

 
Interest rate spread
 
 
 
3.17
%
 
 
 
3.09
%
Net interest margin
 
 
 
3.34
%
 
 
 
3.29
%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands)
Six Months Ended
 
Jun 30, 2014
 
Jun 30, 2013
Commercial loans

$638

 

$389

Nontaxable debt securities
592

 
683

Total

$1,230

 

$1,072






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)
Jun 30,
2014
Mar 31,
2014
Dec 31,
2013
Sep 30,
2013
Jun 30,
2013
Calculation of Tangible Book Value per Share:
 
 
 
 
 
Total shareholders' equity at end of period

$343,450


$335,858


$329,646


$323,585


$303,370

Less:
 
 
 
 
 
Goodwill
58,114

58,114

58,114

58,114

58,114

Identifiable intangible assets, net
5,165

5,329

5,493

5,657

5,827

Total tangible shareholders' equity at end of period

$280,171


$272,415


$266,039


$259,814


$239,429

 
 
 
 
 
 
Shares outstanding at end of period
16,705

16,635

16,614

16,589

16,487

 
 
 
 
 
 
Book value per share - GAAP

$20.56


$20.19


$19.84


$19.51


$18.40

Tangible book value per share - Non-GAAP

$16.77


$16.38


$16.01


$15.66


$14.52

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

$280,171


$272,415


$266,039


$259,814


$239,429

 
 
 
 
 
 
Total assets at end of period

$3,317,022


$3,194,146


$3,188,867


$3,131,958


$3,061,307

Less:
 
 
 
 
 
Goodwill
58,114

58,114

58,114

58,114

58,114

Identifiable intangible assets, net
5,165

5,329

5,493

5,657

5,827

Total tangible assets at end of period

$3,253,743


$3,130,703


$3,125,260


$3,068,187


$2,997,366

 
 
 
 
 
 
Equity to assets - GAAP
10.35
%
10.51
%
10.34
%
10.33
%
9.91
%
Tangible equity to tangible assets - Non-GAAP
8.61
%
8.70
%
8.51
%
8.47
%
7.99
%
 
 
 
 
 
 
Calculation of Return on Average Tangible Assets:
 
 
 
 
 
Net income

$9,797


$9,298


$9,789


$9,960


$8,983

 
 
 
 
 
 
Total average assets

$3,214,649


$3,174,281


$3,163,042


$3,098,228


$3,034,956

Less:
 
 
 
 
 
Average goodwill
58,114

58,114

58,114

58,114

58,114

Average identifiable intangible assets, net
5,245

5,410

5,573

5,739

5,912

Total average tangible assets

$3,151,290


$3,110,757


$3,099,355


$3,034,375


$2,970,930

 
 
 
 
 
 
Return on average assets - GAAP
1.22
%
1.17
%
1.24
%
1.29
%
1.18
%
Return on average tangible assets - Non-GAAP
1.24
%
1.20
%
1.26
%
1.31
%
1.21
%
 
 
 
 
 
 
Calculation of Return on Average Tangible Equity:
 
 
 
 
 
Net income

$9,797


$9,298


$9,789


$9,960


$8,983

 
 
 
 
 
 
Total average shareholders' equity

$340,235


$335,029


$326,866


$310,785


$303,402

Less:
 
 
 
 
 
Average goodwill
58,114

58,114

58,114

58,114

58,114

Average identifiable intangible assets, net
5,245

5,410

5,573

5,739

5,912

Total average tangible shareholders' equity

$276,876


$271,505


$263,179


$246,932


$239,376

 
 
 
 
 
 
Return on average shareholders' equity - GAAP
11.52
%
11.10
%
11.98
%
12.82
%
11.84
%
Return on average tangible shareholders' equity - Non-GAAP
14.15
%
13.70
%
14.80
%
16.13
%
15.01
%





Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
 
 
 
Six Months Ended
(Dollars in thousands)
Jun 30,
2014
Jun 30,
2013
Calculation of return on average tangible assets:
 
 
Net income

$19,095


$16,404

 
 
 
Total average assets

$3,194,576


$3,026,310

Less:
 
 
Average goodwill
58,114

58,114

Average identifiable intangible assets, net
5,327

5,998

Total average tangible assets

$3,131,135


$2,962,198

 
 
 
Return on average assets - GAAP
1.20
%
1.08
%
Return on average tangible assets - Non-GAAP
1.22
%
1.11
%
 
 
 
 
 
 
Calculation of return on average tangible equity:
 
 
Net income

$19,095


$16,404

 
 
 
Total average shareholders' equity

$337,646


$301,430

Less:
 
 
Average goodwill
58,114

58,114

Average identifiable intangible assets, net
5,327

5,998

Total average tangible shareholders' equity

$274,205


$237,318

 
 
 
Return on average shareholders' equity - GAAP
11.31
%
10.88
%
Return on average tangible shareholders' equity - Non-GAAP
13.93
%
13.82
%