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Washington Trust Announces Record Earnings for Fourth Quarter and Full Year 2012



  Washington Trust Announces Record Earnings for Fourth Quarter and Full Year
  2012

                 Diluted Earnings Per Share up 17% over 2011

Business Wire

WESTERLY, R.I. -- January 30, 2013

Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent
company of The Washington Trust Company, today announced fourth quarter 2012
net income of $9.0 million, or $0.55 per diluted share. On a diluted earnings
per share basis, fourth quarter 2012 results were up by $.01, or 2%, from
third quarter 2012 and by $.08, or 17%, from fourth quarter 2011.

For the year ended December 31, 2012, net income totaled $35.1 million, or
$2.13 per diluted share, compared to $29.7 million, or $1.82 per diluted
share, for 2011. On a diluted earnings per share basis, 2012 earnings were up
by 17% over 2011. The returns on average equity and average assets for 2012
were 11.97% and 1.16%, respectively, compared to 10.61% and 1.02%,
respectively, for 2011.

“Washington Trust had another exceptional performance in 2012, highlighted by
record earnings and growth along key business lines,” stated Joseph J.
MarcAurele, Washington Trust Chairman, President and CEO. “We have continued
to manage our way through these challenging economic times by successfully
expanding our market reach, attracting new client relationships, and
continuing to make a difference in the communities in which we live and work.”

Selected financial highlights for the fourth quarter of 2012 included:

  * The returns on average equity and average assets for the quarter were
    12.01% and 1.19%, respectively, compared to 12.02% and 1.17%,
    respectively, for the third quarter of 2012.
  * Residential mortgage origination volume and mortgage banking revenues (net
    gains on loan sales and commissions on loans originated for others)
    reached an all-time quarterly high and totaled $4.5 million for the
    quarter, a 28% increase over the prior quarter.
  * Loans totaled $2.3 billion at December 31, 2012, up by $37.3 million, or
    2%, from September 30, 2012, led by growth in the commercial loan
    portfolio.
  * Total deposits amounted to $2.3 billion at December 31, 2012, up
    $78.0 million, or 3.5%, from September 30, 2012, with growth in lower-cost
    deposits.

The following transactions were included in the results for fourth quarter of
2012:

  * Balance sheet management transactions were conducted in the quarter and
    were comprised of:

       * The sale of mortgage-backed securities with an amortized cost of
         $33.1 million, resulting in fourth quarter 2012 net realized gains of
         $924 thousand.
       * The prepayment of Federal Home Loan Bank of Boston (“FHLBB”) advances
         totaling $38.8 million, resulting in debt prepayment penalty expense
         of $1.8 million in the quarter.
       * The modification of terms of $33.2 million of FHLBB advances with a
         weighted average maturity of 43 months into longer-term advances with
         a weighted average maturity of 78 months.
       * These transactions resulted in net interest income enhancement of
         approximately $45 thousand in the fourth quarter of 2012 and are
         expected to result in net interest income enhancement of
         approximately $577 thousand in 2013, with continuing benefits in
         future years.

  * A relatively large commercial loan prepayment penalty fee of $357 thousand
    was received and included in net interest income.
  * Two significant insurance commission fees totaling $462 thousand were
    received in the quarter and reported in wealth management revenues.
  * The Corporation made a $400 thousand contribution to its charitable
    foundation, which was classified in other noninterest expenses.

The net impact of these transactions was a reduction in earnings of 2 cents
per diluted share in the fourth quarter of 2012.

Net Interest Income

The net interest margin for the fourth quarter of 2012 was 3.33%. Excluding
the impact of the above mentioned commercial loan prepayment penalty fee, the
net interest margin for the fourth quarter of 2012 was 3.28%, unchanged from
the previous quarter and up by 6 basis points from 3.22% in the fourth quarter
of 2011. The year over year improvement in the net interest margin largely
reflected a reduction in the cost of funds.

Average interest-earning assets for the fourth quarter of 2012 increased by
$6.8 million from the previous quarter and by $58.7 million from the fourth
quarter of 2011, reflecting solid loan growth partially offset by reductions
in the securities portfolio.

Fourth quarter 2012 net interest income amounted to $23.2 million. Excluding
the fourth quarter 2012 fee, net interest income was up slightly compared to
the previous quarter and up by $792 thousand, or 4%, compared to the fourth
quarter of 2011.

Noninterest Income

Noninterest income for the fourth quarter of 2012 totaled $17.9 million, up by
$966 thousand, or 6%, from the previous quarter and up by $3.1 million, or
21%, from the fourth quarter of 2011. Included in noninterest income were:

  * Fourth quarter 2012 wealth management insurance commission fees of $462
    thousand mentioned above;
  * Net realized gains on sales of securities of $924 thousand in the fourth
    quarter of 2012;
  * A $528 thousand non-taxable gain related to the receipt of BOLI proceeds
    in the third quarter of 2012; and
  * $501 thousand of net realized gains on sales of securities recognized in
    the fourth quarter of 2011.

Excluding these items, noninterest income for the fourth quarter of 2012
increased by $108 thousand, or 1%, from the previous quarter and up by $2.2
million, or 15%, from the fourth quarter of 2011. Significant changes in
noninterest income, on this basis, included the following:

  * Mortgage banking revenues increased by $972 thousand, or 28%, from the
    third quarter of 2012 and by $1.5 million, or 53%, from the fourth quarter
    of 2011, due to a record quarter of mortgage origination and sales
    activity.
  * Fourth quarter 2012 wealth management revenues were $7.8 million.
    Excluding the above mentioned insurance commission fees, these revenues
    were up by $135 thousand, or 2%, on a linked quarter basis and up by
    $403 thousand, or 6%, compared to the fourth quarter of 2011.
  * Merchant processing fees totaled $2.2 million for the fourth quarter of
    2012, down by $975 thousand, or 30%, on a linked quarter basis and up by
    $176 thousand, or 9%, compared to the fourth quarter of 2011. On a linked
    quarter basis, the decline reflects a seasonal decrease in the volume of
    transactions processed for customers. See discussion on the corresponding
    linked quarter decrease in merchant processing costs under the caption
    “Noninterest Expenses.”

Noninterest Expenses

Noninterest expenses totaled $27.4 million for the fourth quarter of 2012, up
by $1.1 million, or 4%, from the previous quarter and up by $2.6 million, or
11%, from the fourth quarter of 2011. Included in noninterest expenses were:

  * Debt prepayment penalties of $1.8 million in the fourth quarter of 2012,
    $1.2 million in third quarter of 2012 and $473 thousand in the fourth
    quarter of 2011; and
  * Charitable contribution expense of $400 thousand in the fourth quarter of
    2012 and $990 thousand in the fourth quarter of 2011.

Excluding these items, noninterest expenses for the fourth quarter of 2012
increased by $130 thousand, or 1%, from the previous quarter and up by $1.9
million, or 8%, from the fourth quarter of 2011. Significant changes in
noninterest expenses, on this basis, included the following:

  * Salaries and employee benefit costs amounted to $15.7 million in the
    fourth quarter of 2012, an increase of $447 thousand, or 3%, from the
    previous quarter and up by $1.7 million, or 12%, from the fourth quarter
    of 2011, reflecting higher staffing levels to support growth and higher
    levels of business development based compensation primarily in mortgage
    banking.
  * Merchant processing costs totaled $1.9 million in the fourth quarter of
    2012, down by $804 thousand, or 30%, on a linked quarter basis and up by
    $138 thousand, or 8%, compared to the fourth quarter of 2011. See the
    discussion above regarding the corresponding linked quarter decrease in
    merchant processing fee income.

Income tax expense amounted to $4.0 million for the fourth quarter of 2012,
compared to $3.9 million for the third quarter of 2012 and $3.3 million for
the fourth quarter of 2011. The effective tax rate for the fourth quarter of
2012 was 30.8%, compared to 30.3% for the previous quarter and 29.7% for the
fourth quarter of 2011. Based on the current status of federal and applicable
state income tax statutes, the Corporation currently expects the 2013
effective tax rate to be approximately 31.8%.

Asset Quality

Total nonaccrual loans amounted to $22.5 million, or 0.98% of total loans, at
December 31, 2012, up by $4.8 million from September 30, 2012. At December 31,
2012, total past due loans amounted to $28.1 million, or 1.22% of total loans,
up by $4.5 million from September 30, 2012. These changes in nonaccrual loans
and past due loans are largely associated with a small number of larger
commercial relationships.

The loan loss provision charged to earnings amounted to $600 thousand for the
fourth quarter of 2012, level with the third quarter of 2012 and down by
$400 thousand from the fourth quarter of 2011. Net charge-offs amounted to
$479 thousand in the fourth quarter of 2012, compared to net charge-offs of
$296 thousand in the third quarter of 2012 and $839 thousand in the fourth
quarter of 2011.

The allowance for loan losses was $30.9 million, or 1.35% of total loans, at
December 31, 2012 compared to $30.8 million, or 1.36% of total loans, at
September 30, 2012.

Loans

Total loans rose by $37.3 million, or 2%, in the fourth quarter of 2012, with
increases in commercial loans of $33.1 million. Total loans are up by
$146.8 million, or 7%, from December 31, 2011, including a $127.8 million, or
11%, increase in total commercial loans.

Investment Securities

The investment securities portfolio amounted to $415.9 million at December 31,
2012, down by $68.0 million from September 30, 2012 and down by $177.5 million
from December 31, 2011, primarily due to principal payments received on
mortgage-backed securities not being reinvested and balance sheet management
transactions that included the sale of mortgage-backed securities.

Deposits and Borrowings

Total deposits increased by $78.0 million, or 3%, in the fourth quarter of
2012 and by $186.3 million, or 9%, since December 31, 2011, reflecting growth
in lower-cost non-time categories of deposits.

FHLBB advances totaled $361.2 million at December 31, 2012, down by
$56.5 million from September 30, 2012 and down by $179.3 million from
December 31, 2011. In addition to balance sheet management transactions, this
decline reflects less demand for wholesale funding due to the strong deposit
growth.

Other borrowings were $1.2 million at December 31, 2012, compared to
$229 thousand at September 30, 2012 and $19.8 million at December 31, 2011.
The decline in other borrowings from the balance at December 31, 2011, was
primarily due to the maturity of securities sold under repurchase agreements.

Capital Management

Capital levels continued to exceed the regulatory minimum levels to be
considered well capitalized, with a total risk-based capital ratio of 13.26%
at December 31, 2012, compared to 12.86% at December 31, 2011. Total
shareholder's equity was $295.7 million at December 31, 2012, down by
$2.7 million from the balance at September 30, 2012 and up by $14.3 million
from the balance at December 31, 2011. A charge of $6.1 million to the
accumulated other comprehensive income component of shareholders' equity was
recorded at December 31, 2012, 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.

Dividends Declared

The Board of Directors declared a quarterly dividend of 24 cents per share for
the quarter ended December 31, 2012. The dividend was paid on January 11, 2013
to shareholders of record on January 2, 2013.

Conference Call

Washington Trust will host a conference call on Thursday, January 31, 2013 at
8:30 a.m. Eastern Time to discuss fourth quarter results and business outlook.
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 1-866-250-8117. The international dial-in number is
1-412-317-6011 and the Canada dial-in number is 1-855-669-9657. 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 the replay, dial 1-877-344-7529. For
international access, dial 1-412-317-0088. The Conference Number for replay is
10023365. The replay will be available until 9:00 a.m. on February 15, 2013.

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 The NASDAQ Global Select® Stock
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:
continued weakness 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, 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, 2011, 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,        Dec 31,
                                                   2012           2011
Assets:                                                          
Cash and due from banks                            $73,474        $82,238
Short-term investments                             19,176         4,782
Mortgage loans held for sale, at fair value;
amortized cost $48,370 in 2012 and $19,624 in      50,056         20,340
2011
Securities:
Available for sale, at fair value; amortized       375,498        541,253
cost $363,408 in 2012 and $524,036 in 2011
Held to maturity, at cost; fair value $41,420 in   40,381         52,139      
2012 and $52,499 in 2011
Total securities                                   415,879        593,392
Federal Home Loan Bank stock, at cost              40,418         42,008
Loans:
Commercial and other                               1,252,419      1,124,628
Residential real estate                            717,681        700,414
Consumer                                           323,903        322,117     
Total loans                                        2,294,003      2,147,159
Less allowance for loan losses                     30,873         29,802      
Net loans                                          2,263,130      2,117,357
Premises and equipment, net                        27,232         26,028
Investment in bank-owned life insurance            54,823         53,783
Goodwill                                           58,114         58,114
Identifiable intangible assets, net                6,173          6,901
Other assets                                       63,409         59,155      
Total assets                                       $3,071,884     $3,064,098  
Liabilities:
Deposits:
Demand deposits                                    $379,889       $339,809
NOW accounts                                       291,174        257,031
Money market accounts                              496,402        406,777
Savings accounts                                   274,934        243,904
Time deposits                                      870,232        878,794     
Total deposits                                     2,312,631      2,126,315
Federal Home Loan Bank advances                    361,172        540,450
Junior subordinated debentures                     32,991         32,991
Other borrowings                                   1,212          19,758
Other liabilities                                  68,226         63,233      
Total liabilities                                  2,776,232      2,782,747   
Shareholders’ Equity:
Common stock of $.0625 par value; authorized
30,000,000 shares; issued and outstanding          1,024          1,018
16,379,771 shares in 2012 and 16,292,471 shares
in 2011
Paid-in capital                                    91,453         88,030
Retained earnings                                  213,674        194,198
Accumulated other comprehensive loss               (10,499    )   (1,895     )
Total shareholders’ equity                         295,652        281,351     
Total liabilities and shareholders’ equity         $3,071,884     $3,064,098  
                                                                              

 
Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
 
(Dollars and shares in
thousands, except per share     Three Months            Twelve Months
amounts)
Periods ended December 31,      2012        2011        2012         2011
Interest income:                                                    
Interest and                    $26,109     $25,284     $102,656     $99,319
fees on loans
Interest on     Taxable         3,241       4,422       15,359       18,704
securities:
                Nontaxable      664         727         2,699        3,001
Dividends on corporate stock
and Federal Home Loan Bank      49          57          256          253
stock
Other interest income           27          17          91           69       
Total interest income           30,090      30,507      121,061      121,346  
Interest expense:
Deposits                        3,380       3,652       13,590       15,692
Federal Home Loan Bank          3,148       4,202       14,957       18,158
advances
Junior subordinated             394         393         1,570        1,568
debentures
Other interest expense          4           245         248          973      
Total interest expense          6,926       8,492       30,365       36,391   
Net interest income             23,164      22,015      90,696       84,955
Provision for loan losses       600         1,000       2,700        4,700    
Net interest income after       22,564      21,015      87,996       80,255   
provision for loan losses
Noninterest income:
Wealth management services:
Trust and investment advisory   5,991       5,487       23,465       22,532
fees
Mutual fund fees                1,018       994         4,069        4,287
Financial planning,
commissions and other service   781         444         2,107        1,487    
fees
Wealth management services      7,790       6,925       29,641       28,306
Service charges on deposit      837         793         3,193        3,455
accounts
Merchant processing fees        2,232       2,056       10,159       9,905
Card interchange fees           636         584         2,480        2,249
Income from bank-owned life     479         493         2,448        1,939
insurance
Net gains on loan sales and
commissions on loans            4,476       2,935       14,092       5,074
originated for others
Net realized gains on           924         501         1,223        698
securities
Net gains on interest rate      168         12          255          6
swap contracts
Equity in earnings (losses)
of unconsolidated               82          220         196          (213    )
subsidiaries
Other income                    275         307         1,748        1,536    
Noninterest income, excluding
other-than-temporary            17,899      14,826      65,435       52,955
impairment losses
Total other-than-temporary
impairment losses on            57          —           (28      )   (54     )
securities
Portion of loss recognized in
other comprehensive income      (69     )   —           (193     )   (137    )
(before tax)
Net impairment losses           (12     )   —           (221     )   (191    )
recognized in earnings
Total noninterest income        17,887      14,826      65,214       52,764   
Noninterest expense:
Salaries and employee           15,661      13,957      59,786       51,095
benefits
Net occupancy                   1,518       1,376       6,039        5,295
Equipment                       1,222       1,133       4,640        4,344
Merchant processing costs       1,903       1,765       8,593        8,560
Outsourced services             900         920         3,560        3,530
FDIC deposit insurance costs    419         429         1,730        2,043
Legal, audit and professional   641         538         2,240        1,927
fees
Advertising and promotion       435         478         1,730        1,819
Amortization of intangibles     173         246         728          951
Foreclosed property costs       158         329         762          878
Debt prepayment penalties       1,774       473         3,908        694
Other expenses                  2,617       3,130       8,622        9,237    
Total noninterest expense       27,421      24,774      102,338      90,373   
Income before income taxes      13,030      11,067      50,872       42,646
Income tax expense              4,007       3,290       15,798       12,922   
Net income                      $9,023      $7,777      $35,074      $29,724  
                                                                      
Weighted average common         16,376      16,288      16,358       16,254
shares outstanding - basic
Weighted average common         16,425      16,326      16,401       16,284
shares outstanding - diluted
Per share       Basic
information:    earnings per    $0.55       $0.48       $2.13        $1.82
                common share
                Diluted
                earnings per    $0.55       $0.47       $2.13        $1.82
                common share
                Cash
                dividends       $0.24       $0.22       $0.94        $0.88
                declared per
                share
                                                                              

 
Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
                  At or for the Quarters Ended
(Dollars and
shares in         Dec 31,        Sep 30,        Jun 30,        Mar 31,        Dec 31,
thousands,        2012           2012           2012           2012           2011
except per
share amounts)
Financial Data:                                                              
Total assets      $3,071,884     $3,048,868     $3,041,050     $3,028,690     $3,064,098
Total loans       2,294,003      2,256,697      2,213,842      2,155,359      2,147,159
Total             415,879        483,858        516,193        558,284        593,392
securities
Total deposits    2,312,631      2,234,659      2,130,453      2,145,562      2,126,315
Total
shareholders'     295,652        298,394        292,734        287,935        281,351
equity
Net interest      23,164         22,736         22,411         22,385         22,015
income
Provision for     600            600            600            900            1,000
loan losses
Noninterest
income,           17,899         16,921         16,174         14,441         14,826
excluding OTTI
losses
Net OTTI losses
recognized in     (12        )   —              —              (209       )   —
earnings
Noninterest       27,421         26,290         25,228         23,399         24,774
expenses
Income tax        4,007          3,867          4,044          3,880          3,290
expense
Net income        9,023          8,900          8,713          8,438          7,777
                                                                               
Share Data:
Basic earnings
per common        $0.55          $0.54          $0.53          $0.51          $0.48
share
Diluted
earnings per      $0.55          $0.54          $0.53          $0.51          $0.47
common share
Dividends
declared per      $0.24          $0.24          $0.23          $0.23          $0.22
share
Book value per    $18.05         $18.23         $17.89         $17.61         $17.27
share
Tangible book
value per share   $14.13         $14.29         $13.94         $13.64         $13.28
- Non-GAAP (1)
Market value      $26.31         $26.27         $24.38         $24.14         $23.86
per share
Shares
outstanding at    16,380         16,371         16,359         16,354         16,292
end of period
Weighted
average common
shares            16,376         16,366         16,358         16,330         16,288
outstanding -
basic
Weighted
average common
shares            16,425         16,414         16,392         16,370         16,327
outstanding -
diluted
                                                                               
Key Ratios:
Return on         1.19       %   1.17       %   1.16       %   1.11       %   1.04       %
average assets
Return on
average           1.21       %   1.19       %   1.18       %   1.14       %   1.07       %
tangible assets
- Non-GAAP (1)
Return on         12.01      %   12.02      %   11.98      %   11.85      %   10.89      %
average equity
Return on
average           15.29      %   15.37      %   15.41      %   15.35      %   14.10      %
tangible equity
- Non-GAAP (1)
                                                                               
Capital Ratios:
Tier 1
risk-based        12.01% (i)     11.93      %   11.90      %   11.96      %   11.61      %
capital
Total
risk-based        13.26% (i)     13.18      %   13.15      %   13.22      %   12.86      %
capital
Tier 1 leverage   9.30% (i)      9.11       %   9.00       %   8.75       %   8.70       %
ratio
Equity to         9.62       %   9.79       %   9.63       %   9.51       %   9.18       %
assets
Tangible equity
to tangible       7.69       %   7.84       %   7.66       %   7.53       %   7.21       %
assets -
Non-GAAP (1)
(i) - estimated
                                                                               
Wealth
Management
Assets under
Administration:
Balance at
beginning of      $4,242,520     $4,079,913     $4,196,447     $3,900,061     $3,728,837
period
Net investment
(depreciation)    (5,887     )   155,427        (131,896   )   298,155        215,449
appreciation &
income
Net client cash   (36,993    )   7,180          15,362         (1,769     )   (36,815    )
flows
Other (2)         —              —              —              —              (7,410     )
Balance at end    $4,199,640     $4,242,520     $4,079,913     $4,196,447     $3,900,061  
of period

(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 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       Dec 31,        Dec 31,
share amounts)                                     2012           2011
Financial Data:                                                  
Net interest income                                $90,696        $84,955
Provision for loan losses                          2,700          4,700
Noninterest income, excluding OTTI losses          65,435         52,955
Net OTTI losses recognized in earnings             (221       )   (191       )
Noninterest expenses                               102,338        90,373
Income tax expense                                 15,798         12,922
Net income                                         35,074         29,724
                                                                   
Share Data:
Basic earnings per common share                    $2.13          $1.82
Diluted earnings per common share                  $2.13          $1.82
Dividends declared per share                       $0.94          $0.88
Weighted average common shares outstanding -       16,358         16,254
basic
Weighted average common shares outstanding -       16,401         16,284
diluted
                                                                   
Key Ratios:
Return on average assets                           1.16       %   1.02       %
Return on average tangible assets - Non-GAAP (1)   1.18       %   1.04       %
Return on average equity                           11.97      %   10.61      %
Return on average tangible equity - Non-GAAP (1)   15.35      %   13.85      %
                                                                   
Asset Quality Data:
Allowance for Loan Losses:
Balance at beginning of period                     $29,802        $28,583
Provision charged to earnings                      2,700          4,700
Charge-offs                                        (2,335     )   (3,834     )
Recoveries                                         706            353         
Balance at end of period                           $30,873        $29,802     
                                                                   
Net Loan Charge-Offs (Recoveries):
Commercial mortgages                               $43            $953
Other commercial                                   1,076          1,374
Residential real estate mortgages                  257            637
Consumer                                           253            517         
Total                                              $1,629         $3,481      
                                                                   
Net charge-offs to average loans (annualized)      0.07       %   0.17       %
                                                                   
Wealth Management Assets Under Administration:
Balance at beginning of period                     $3,900,061     $3,967,207
Net investment appreciation (depreciation) &       315,799        (12,324    )
income
Net client cash flows                              (16,220    )   (47,412    )
Other (2)                                          —              (7,410     )
Balance at end of period                           $4,199,640     $3,900,061  

(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 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,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
                               2012      2012      2012      2012      2011
Average Yield / Rate                                                  
(taxable equivalent basis):
Assets:
Commercial mortgages and       4.90  %   4.94  %   5.03  %   5.13  %   5.19  %
other commercial loans
Residential real estate
loans, including mortgage      4.23  %   4.32  %   4.40  %   4.51  %   4.46  %
loans held for sale
Consumer loans                 3.86  %   3.89  %   3.85  %   3.89  %   3.87  %
Total loans                    4.53  %   4.59  %   4.65  %   4.74  %   4.74  %
Cash, federal funds sold and   0.26  %   0.26  %   0.23  %   0.15  %   0.19  %
other short-term investments
FHLBB stock                    0.48  %   0.51  %   0.54  %   0.50  %   0.30  %
Taxable debt securities        3.49  %   3.50  %   3.63  %   3.62  %   3.58  %
Nontaxable debt securities     5.89  %   5.83  %   5.93  %   5.92  %   5.82  %
Corporate stocks               —         —         7.58  %   7.16  %   5.89  %
Total securities               3.86  %   3.83  %   3.95  %   3.93  %   3.88  %
Total interest-earning         4.31  %   4.34  %   4.41  %   4.43  %   4.44  %
assets
Liabilities:
NOW accounts                   0.07  %   0.06  %   0.06  %   0.08  %   0.10  %
Money market accounts          0.28  %   0.26  %   0.23  %   0.22  %   0.24  %
Savings accounts               0.09  %   0.11  %   0.11  %   0.11  %   0.12  %
Time deposits                  1.32  %   1.33  %   1.35  %   1.41  %   1.45  %
FHLBB advances                 3.27  %   3.18  %   3.25  %   3.14  %   3.44  %
Junior subordinated            4.75  %   4.74  %   4.77  %   4.78  %   4.73  %
debentures
Other                          5.51  %   6.33  %   2.07  %   4.98  %   4.59  %
Total interest-bearing         1.19  %   1.27  %   1.33  %   1.38  %   1.45  %
liabilities
                                                                        
Interest rate spread           3.12  %   3.07  %   3.08  %   3.05  %   2.99  %
(taxable equivalent basis)
Net interest margin (taxable   3.33  %   3.28  %   3.30  %   3.27  %   3.22  %
equivalent basis)

                              
                               At December 31, 2012
                               Amortized    Unrealized   Unrealized   Fair
(Dollars in thousands)         Cost (1)     Gains        Losses       Value
Securities Available for
Sale:
Obligations of U.S.
government-sponsored           $29,458      $2,212       $—           $31,670
enterprises
Mortgage-backed securities
issued by U.S. government
agencies and U.S.              217,136      14,097       —            231,233
government-sponsored
enterprises
States and political           68,196       4,424        —            72,620
subdivisions
Trust preferred securities:
Individual name issuers        30,677       —            (5,926   )   24,751
Collateralized debt            4,036        —            (3,193   )   843
obligations
Corporate bonds                13,905       476          —            14,381
Total securities available     363,408      21,209       (9,119   )   375,498
for sale
Held to Maturity:
Mortgage-backed securities
issued by U.S. government
agencies and U.S.              40,381       1,039        —            41,420
government-sponsored
enterprises
Total securities held to       40,381       1,039        —            41,420
maturity
Total securities               $403,789     $22,248      ($9,119  )   $416,918

(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,        Sep 30,        Jun 30,        Mar 31,        Dec 31,
                             2012           2012           2012           2012           2011
Loans:                                                                                  
Commercial:   Mortgages      $710,813       $693,221       $664,410       $642,012       $624,813
              Construction
              &              27,842         25,132         17,365         11,130         10,955
              development
              Other          513,764        500,974        510,220        486,258        488,860
              Total          1,252,419      1,219,327      1,191,995      1,139,400      1,124,628
              commercial
Residential
real          Mortgages      692,798        692,659        680,772        675,249        678,582
estate:
              Homeowner      24,883         22,753         21,247         21,708         21,832
              construction
              Total
              residential    717,681        715,412        702,019        696,957        700,414
              real estate
Consumer:     Home equity    226,861        227,549        224,550        223,311        223,430
              lines
              Home equity    39,329         39,452         40,690         40,793         43,121
              loans
              Other          57,713         54,957         54,588         54,898         55,566
              Total          323,903        321,958        319,828        319,002        322,117
              consumer
              Total loans    $2,294,003     $2,256,697     $2,213,842     $2,155,359     $2,147,159

                                                    
                                                     At December 31, 2012
(Dollars in thousands)                               Balance      % of Total
Commercial Real Estate Loans by Property Location:               
Rhode Island, Connecticut, Massachusetts             $707,068     95.7    %
New York                                             22,081       3.0     %
New Hampshire                                        9,290        1.3     %
Other                                                216          —        
Total commercial real estate loans (1)               $738,655     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, 2012
(Dollars in thousands)                                 Balance      % of Total
Residential Mortgages by Property Location:                        
Rhode Island, Connecticut, Massachusetts               $697,814     97.2    %
New York, Virginia, New Jersey, Maryland,              9,591        1.3     %
Pennsylvania, District of Columbia
New Hampshire                                          3,903        0.5     %
Ohio                                                   2,953        0.4     %
Washington, Oregon                                     1,379        0.2     %
Georgia                                                1,101        0.2     %
New Mexico                                             476          0.1     %
Other                                                  464          0.1     %
Total residential mortgages                            $717,681     100.0   %

               
                Period End Balances At
(Dollars in     Dec 31,        Sep 30,        Jun 30,        Mar 31,        Dec 31,
thousands)      2012           2012           2012           2012           2011
Deposits:                                                                  
Demand          $379,889       $352,330       $321,488       $333,833       $339,809
deposits
NOW accounts    291,174        267,495        263,124        258,986        257,031
Money market    496,402        459,671        388,686        400,396        406,777
accounts
Savings         274,934        268,191        264,772        257,495        243,904
accounts
Time deposits   870,232        886,972        892,383        894,852        878,794
Total           $2,312,631     $2,234,659     $2,130,453     $2,145,562     $2,126,315
deposits
                                                                             
Out-of-market
brokered
certificates    $102,636       $98,603        $102,661       $95,989        $90,073
of deposits
included in
time deposits
In-market
deposits,
excluding
out-of-market   $2,209,995     $2,136,056     $2,027,792     $2,049,573     $2,036,242
brokered
certificates
of deposit
                                                                             

 
Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
                     Period End Balances At
(Dollars in          Dec 31,     Sep 30,     Jun 30,     Mar 31,     Dec 31,
thousands)           2012        2012        2012        2012        2011
Asset Quality                                                       
Data:
Nonperforming
Assets:
Commercial           $10,681     $5,956      $2,597      $5,099      $5,709
mortgages
Commercial
construction and     —           —           —           —           —
development
Other commercial     4,412       3,201       3,405       4,200       3,708
Residential real     6,158       7,127       8,659       9,031       10,614
estate mortgages
Consumer             1,292       1,463       1,081       1,069       1,206    
Total nonaccrual     $22,543     $17,747     $15,742     $19,399     $21,237
loans
Nonaccrual
investment           843         929         767         750         887
securities
Property acquired
through              2,047       2,447       2,332       3,478       2,647    
foreclosure or
repossession
Total
nonperforming        $25,433     $21,123     $18,841     $23,627     $24,771  
assets
                                                                      
Total past due
loans to total       1.22    %   1.05    %   0.92    %   0.98    %   1.22    %
loans
Nonperforming
assets to total      0.83    %   0.69    %   0.62    %   0.78    %   0.81    %
assets
Nonaccrual loans     0.98    %   0.79    %   0.71    %   0.90    %   0.99    %
to total loans
Allowance for loan
losses to            136.95  %   173.28  %   193.42  %   154.88  %   140.33  %
nonaccrual loans
Allowance for loan
losses to total      1.35    %   1.36    %   1.38    %   1.39    %   1.39    %
loans
                                                                      
Troubled Debt
Restructured
Loans:
Accruing troubled
debt restructured
loans:
Commercial           $9,569      $9,131      $1,251      $1,059      $6,389
mortgages
Other commercial     6,577       6,880       6,916       7,329       6,625
Residential real     1,123       386         570         935         1,481
estate mortgages
Consumer             154         158         159         174         171      
Accruing troubled
debt restructured    17,423      16,555      8,896       9,497       14,666   
loans
Nonaccrual
troubled debt
restructured
loans:
Commercial           —           —           —           348         91
mortgages
Other commercial     2,063       2,306       2,317       2,361       2,154
Residential real     688         1,697       2,028       1,904       2,615
estate mortgages
Consumer             44          46          47          35          106      
Nonaccrual
troubled debt        2,795       4,049       4,392       4,648       4,966    
restructured loans
Total troubled
debt restructured    $20,218     $20,604     $13,288     $14,145     $19,632  
loans
                                                                              

 
Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
                       Period End Balances At
(Dollars in            Dec 31,     Sep 30,     Jun 30,     Mar 31,     Dec 31,
thousands)             2012        2012        2012        2012        2011
Past Due Loans:                                                       
Loans 30-59 Days
Past Due:
Commercial mortgages   $373        $3,978      $411        $104        $1,621
Other commercial       260         2,719       849         1,031       3,760
loans
Residential real       4,840       2,368       4,969       4,468       3,969
estate mortgages
Consumer loans         1,134       1,876       2,660       2,404       1,073
Loans 30-59 days       $6,607      $10,941     $8,889      $8,007      $10,423
past due
                                                                        
Loans 60-89 Days
Past Due:
Commercial mortgages   $408        $874        $233        $—          $315
Other commercial       296         1,169       434         33          982
loans
Residential real       1,951       821         1,600       488         1,505
estate mortgages
Consumer loans         385         1,213       677         219         263
Loans 60-89 days       $3,040      $4,077      $2,944      $740        $3,065
past due
                                                                        
Loans 90 Days or
more Past Due:
Commercial mortgages   $10,300     $2,495      $2,339      $4,676      $4,995
Other commercial       3,647       1,366       1,714       2,521       633
loans
Residential real       3,658       3,924       4,039       4,843       6,283
estate mortgages
Consumer loans         844         811         362         326         874
Loans 90 days or       $18,449     $8,596      $8,454      $12,366     $12,785
more past due
                                                                        
Total Past Due
Loans:
Commercial mortgages   $11,081     $7,347      $2,983      $4,780      $6,931
Other commercial       4,203       5,254       2,997       3,585       5,375
loans
Residential real       10,449      7,113       10,608      9,799       11,757
estate mortgages
Consumer loans         2,363       3,900       3,699       2,949       2,210
Total past due loans   $28,096     $23,614     $20,287     $21,113     $26,273
                                                                        
Nonaccrual loans
included in past due   $20,979     $14,471     $12,719     $14,747     $17,588
loans

                    
                     For the Quarters Ended
(Dollars in          Dec 31,     Sep 30,     Jun 30,     Mar 31,     Dec 31,
thousands)           2012        2012        2012        2012        2011
Allowance for Loan                                                  
Losses:
Balance at
beginning of         $30,752     $30,448     $30,045     $29,802     $29,641
period
Provision charged    600         600         600         900         1,000
to earnings
Charge-offs          (534    )   (424    )   (696    )   (681    )   (920    )
Recoveries           55          128         499         24          81       
Balance at end of    $30,873     $30,752     $30,448     $30,045     $29,802  
period
                                                                      
Net Loan
Charge-Offs
(Recoveries):
Commercial           $212        $212        ($388   )   $7          $249
mortgages
Other commercial     225         (22     )   549         324         39
Residential real     39          41          (47     )   224         273
estate mortgages
Consumer             3           65          83          102         278      
Total                $479        $296        $197        $657        $839     
                                                                              

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    2012                              2011
December 31,
                      Average                  Yield/   Average                   Yield/
(Dollars in           Balance      Interest    Rate     Balance        Interest   Rate
thousands)
Assets:                                                
Commercial
mortgages and other   $1,227,120   $15,121     4.90 %   $1,082,834     $14,159    5.19 %
commercial loans
Residential real
estate loans,         757,764      8,049       4.23 %   717,250        8,065      4.46 %
including mortgage
loans held for sale
Consumer loans        322,476      3,131       3.86 %   323,339        3,155      3.87 %
Total loans           2,307,360    26,301      4.53 %   2,123,423      25,379     4.74 %
Cash, federal funds
sold and short-term   42,056       27          0.26 %   35,429         17         0.19 %
investments
FHLBB stock           40,418       49          0.48 %   42,008         32         0.30 %
                                                                                   
Taxable debt          369,736      3,241       3.49 %   490,589        4,422      3.58 %
securities
Nontaxable debt       68,198       1,010       5.89 %   75,352         1,105      5.82 %
securities
Corporate stocks      —            —           —        2,291          34         5.89 %
Total securities      437,934      4,251       3.86 %   568,232        5,561      3.88 %
Total
interest-earning      2,827,768    30,628      4.31 %   2,769,092      30,989     4.44 %
assets
Noninterest-earning   216,996                           214,556                    
assets
Total assets          $3,044,764                        $2,983,648                 
Liabilities and
Shareholders'
Equity:
NOW accounts          $276,572     $49         0.07 %   $243,241       $63        0.10 %
Money market          473,747      338         0.28 %   402,652        245        0.24 %
accounts
Savings accounts      271,716      60          0.09 %   239,110        70         0.12 %
Time deposits         886,355      2,933       1.32 %   897,535        3,274      1.45 %
FHLBB advances        382,465      3,148       3.27 %   484,537        4,202      3.44 %
Junior subordinated   32,991       394         4.75 %   32,991         393        4.73 %
debentures
Other                 289          4           5.51 %   21,194         245        4.59 %
Total
interest-bearing      2,324,135    6,926       1.19 %   2,321,260      8,492      1.45 %
liabilities
Demand deposits       362,060                           330,027
Other liabilities     58,139                            46,654
Shareholders'         300,430                           285,707                    
equity
Total liabilities
and shareholders'     $3,044,764                        $2,983,648                 
equity
Net interest income                $23,702                             $22,497     
(FTE)
Interest rate                                  3.12 %                             2.99 %
spread
Net interest margin                            3.33 %                             3.22 %
                                                                                        

Interest income amounts presented in the preceding table include the following
adjustments for taxable equivalency:

(Dollars in thousands)                    
                                            
Three months ended December 31,   2012     2011
Commercial loans                  $192     $95
Nontaxable debt securities        346      376
Corporate stocks                  —        11
Total                             $538     $482
                                            

 
Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
 
Twelve months ended   2012                             2011
December 31,
                      Average                 Yield/   Average                 Yield/
(Dollars in           Balance      Interest   Rate     Balance      Interest   Rate
thousands)
Assets:                                               
Commercial
mortgages and other   $1,177,268   $58,823    5.00 %   $1,063,322   $55,592    5.23 %
commercial loans
Residential real
estate loans,         733,178      31,974     4.36 %   678,697      31,447     4.63 %
including mortgage
loans held for sale
Consumer loans        320,828      12,428     3.87 %   324,002      12,649     3.90 %
Total loans           2,231,274    103,225    4.63 %   2,066,021    99,688     4.83 %
Cash, federal funds
sold and short-term   41,359       91         0.22 %   35,625       69         0.19 %
investments
FHLBB stock           40,713       207        0.51 %   42,008       124        0.30 %
                                                                                
Taxable debt          431,024      15,359     3.56 %   489,210      18,704     3.82 %
securities
Nontaxable debt       69,838       4,115      5.89 %   77,634       4,555      5.87 %
securities
Corporate stocks      910          68         7.47 %   2,456        177        7.21 %
Total securities      501,772      19,542     3.89 %   569,300      23,436     4.12 %
Total
interest-earning      2,815,118    123,065    4.37 %   2,712,954    123,317    4.55 %
assets
Noninterest-earning   221,031                          214,214                  
assets
Total assets          $3,036,149                       $2,927,168               
Liabilities and
Shareholders'
Equity:
NOW accounts          $259,595     $175       0.07 %   $232,545     $242       0.10 %
Money market          430,262      1,078      0.25 %   392,002      1,051      0.27 %
accounts
Savings accounts      261,795      276        0.11 %   229,180      286        0.12 %
Time deposits         893,474      12,061     1.35 %   925,064      14,113     1.53 %
FHLBB advances        466,424      14,957     3.21 %   492,714      18,158     3.69 %
Junior subordinated   32,991       1,570      4.76 %   32,991       1,568      4.75 %
debentures
Other                 5,093        248        4.87 %   21,891       973        4.44 %
Total
interest-bearing      2,349,634    30,365     1.29 %   2,326,387    36,391     1.56 %
liabilities
Demand deposits       338,046                          278,120
Other liabilities     55,382                           42,554
Shareholders'         293,087                          280,107                  
equity
Total liabilities
and shareholders'     $3,036,149                       $2,927,168               
equity
Net interest income                $92,700                          $86,926     
(FTE)
Interest rate                                 3.08 %                           2.99 %
spread
Net interest margin                           3.29 %                           3.20 %
                                                                                     

Interest income amounts presented in the preceding table include the following
adjustments for taxable equivalency:

(Dollars in thousands)                       
                                               
Twelve months ended December 31,   2012       2011
Commercial loans                   $569       $369
Nontaxable debt securities         1,416      1,553
Corporate stocks                   19         49
Total                              $2,004     $1,971
                                               

 
Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
 
                At or for the Quarters Ended
(Dollars in
thousands,      Dec 31,        Sep 30,        Jun 30,        Mar 31,        Dec 31,
except per      2012           2012           2012           2012           2011
share
amounts)
Calculation
of Tangible                                                                
Book Value
per Share:
Total
shareholders'   $295,652       $298,394       $292,734       $287,935       $281,351
equity at end
of period
Less:
Goodwill        58,114         58,114         58,114         58,114         58,114
Identifiable
intangible      6,173          6,346          6,528          6,714          6,901       
assets, net
Total
tangible
shareholders'   $231,365       $233,934       $228,092       $223,107       $216,336    
equity at end
of period
                                                                             
Shares
outstanding     16,380         16,371         16,359         16,354         16,292      
at end of
period
                                                                             
Book value
per share -     $18.05         $18.23         $17.89         $17.61         $17.27      
GAAP
Tangible book
value per       $14.13         $14.29         $13.94         $13.64         $13.28      
share -
Non-GAAP
                                                                             
Calculation
of Tangible
Equity to
Tangible
Assets:
Total
tangible
shareholders'   $231,365       $233,934       $228,092       $223,107       $216,336    
equity at end
of period
                                                                             
Total assets
at end of       $3,071,884     $3,048,868     $3,041,050     $3,028,690     $3,064,098
period
Less:
Goodwill        58,114         58,114         58,114         58,114         58,114
Identifiable
intangible      6,173          6,346          6,528          6,714          6,901       
assets, net
Total
tangible        $3,007,597     $2,984,408     $2,976,408     $2,963,862     $2,999,083  
assets at end
of period
                                                                             
Equity to       9.62       %   9.79       %   9.63       %   9.51       %   9.18       %
assets - GAAP
Tangible
equity to
tangible        7.69       %   7.84       %   7.66       %   7.53       %   7.21       %
assets -
Non-GAAP
                                                                             
Calculation
of Return on
Average
Tangible
Assets:
Net income      $9,023         $8,900         $8,713         $8,438         $7,777      
                                                                             
Total average   $3,044,764     $3,045,203     $3,017,167     $3,037,270     $2,983,648
assets
Less:
Average         58,114         58,114         58,114         58,114         58,114
goodwill
Average
identifiable    6,257          6,434          6,619          6,805          7,025       
intangible
assets, net
Total average
tangible        $2,980,393     $2,980,655     $2,952,434     $2,972,351     $2,918,509  
assets
                                                                             
Return on
average         1.19       %   1.17       %   1.16       %   1.11       %   1.04       %
assets - GAAP
Return on
average
tangible        1.21       %   1.19       %   1.18       %   1.14       %   1.07       %
assets -
Non-GAAP
                                                                             
Calculation
of Return on
Average
Tangible
Equity:
Net income      $9,023         $8,900         $8,713         $8,438         $7,777      
                                                                             
Total average
shareholders'   $300,430       $296,150       $290,854       $284,801       $285,707
equity
Less:
Average         58,114         58,114         58,114         58,114         58,114
goodwill
Average
identifiable    6,257          6,434          6,619          6,805          7,025       
intangible
assets, net
Total average
tangible        $236,059       $231,602       $226,121       $219,882       $220,568    
shareholders'
equity
                                                                             
Return on
average         12.01      %   12.02      %   11.98      %   11.85      %   10.89      %
shareholders'
equity - GAAP
Return on
average
tangible        15.29      %   15.37      %   15.41      %   15.35      %   14.10      %
shareholders'
equity -
Non-GAAP
                                                                                        

 
Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
 
                                                   Twelve Months Ended
(Dollars in thousands)                             Dec 31,        Dec 31,
                                                   2012           2011
Calculation of Return on Average Tangible                        
Assets:
Net income                                         $35,074        $29,724     
                                                                   
Total average assets                               $3,036,149     $2,927,168
Less:
Average goodwill                                   58,114         58,114
Average identifiable intangible assets, net        6,528          7,374       
Total average tangible assets                      $2,971,507     $2,861,680  
                                                                   
Return on average assets - GAAP                    1.16       %   1.02       %
Return on average tangible assets - Non-GAAP       1.18       %   1.04       %
                                                                   
                                                                   
Calculation of Return on Average Tangible
Equity:
Net income                                         $35,074        $29,724     
                                                                   
Total average shareholders' equity                 $293,087       $280,107
Less:
Average goodwill                                   58,114         58,114
Average identifiable intangible assets, net        6,528          7,374       
Total average tangible shareholders' equity        $228,445       $214,619    
                                                                   
Return on average shareholders' equity - GAAP      11.97      %   10.61      %
Return on average tangible shareholders' equity    15.35      %   13.85      %
- Non-GAAP

Contact:

Washington Trust Bancorp, Inc.
Elizabeth B. Eckel, 401-348-1309
Senior Vice President, Marketing
ebeckel@washtrust.com
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