Exhibit 99.1
[Graphic Omitted]
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: July 21, 2009
FOR IMMEDIATE RELEASE
Washington Trust Announces Second Quarter 2009 Earnings
Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2009 net income of $3.8 million, or 23 cents per diluted share, compared to second quarter 2008 net income of $6.1 million, or 45 cents per diluted share. For the six months ended June 30, 2009, net income amounted to $6.4 million, or 40 cents per diluted share, compared to $11.9 million, or 88 cents per diluted share, for the same period in 2008.
Earnings in the second quarter of 2009 were influenced by the following:
| · | Federal Deposit Insurance Corp. (“FDIC”) deposit insurance premiums for the second quarter of 2009 were up by $1.9 million from the second quarter a year earlier. This increase included a special FDIC assessment of $1.35 million ($869 thousand, after tax; or 5 cents per diluted share). |
| · | The loan loss provision charged to earnings amounted to $3.0 million for the second quarter of 2009, compared to $1.4 million for the second quarter of 2008. The provision was based on management’s assessment of economic and credit conditions as well as growth in the loan portfolio. |
| · | No dividend was received from the Federal Home Loan Bank of Boston (FHLBB) in the second quarter of 2009. Dividend income on Washington Trust’s investment in FHLBB stock totaled $344 thousand in the second quarter of 2008. |
Selected Second Quarter 2009 developments:
| · | Wealth management revenues for the second quarter of 2009 were down by $1.7 million, or 22 percent, from the second quarter of 2008, primarily due to lower valuations in the financial markets. Assets under administration totaled $3.316 billion at June 30, 2009, down $607.3 million from the June 30, 2008 balance. |
| · | Net gains on loan sales and commissions on loans originated for others totaled $1.6 million for the second quarter of 2009, up by $1.1 million from the second quarter of 2008, due to strong residential mortgage refinancing and sales activity. |
-M O R E-
Washington Trust
Page Two, July 21, 2009
| · | Commercial loan growth continued at a good pace, amounting to $39.0 million, or 4 percent, in the second quarter of 2009. Commercial loans have increased $152.2 million, or 19 percent, from the balance at June 30, 2008. |
| · | Reflecting continued weak economic conditions, nonperforming assets amounted to $24.8 million, or 0.85% of total assets, at June 30, 2009 up from $17.5 million, or 0.60% of total assets, at March 31, 2009. Nonperforming assets were $8.8 million, or 0.30% of total assets, at December 31, 2008. |
John C. Warren, Washington Trust Bancorp, Inc.’s Chairman and Chief Executive Officer, stated “The economy remains challenged both locally and nationally. In this environment we will continue to maintain our focus and discipline.”
RESULTS OF OPERATIONS
Net interest income for the second quarter of 2009 increased $302 thousand, or 2 percent, from the first quarter of 2009 and remained essentially flat compared to the second quarter a year ago. On a year-to-date basis, net interest income increased $937 thousand, or 3 percent, from 2008. No dividend has been received from the FHLBB in 2009. Dividend income on Washington Trust’s investment in FHLBB stock totaled $445 thousand and $344 thousand in the first and second quarters of 2008, respectively.
The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the second quarter of 2009 was 2.45%, up 6 basis points from the first quarter of 2009 and down 26 basis points from the second quarter a year ago. For the six months ended June 30, 2009, the net interest margin was 2.42%, down 23 basis points from the same period a year earlier. The quarter and year-to-date decreases in net interest margin from 2008 reflect the elimination of FHLBB dividend income and margin compression, in general, on core deposit rates following the Federal Reserve’s actions to reduce short-term interest rates in late 2008 and early 2009.
Total noninterest income for the second quarter of 2009 increased $4.4 million, or 56 percent, from the first quarter of 2009 and increased $144 thousand, or 1 percent, from the second quarter of 2008. Included in noninterest income in the first quarter of 2009 were net impairment losses of $2.0 million for investment securities deemed to be other-than-temporarily impaired. There were no impairment losses recognized in the second quarter of 2009. On a year-to-date basis, total noninterest income decreased by $3.0 million, or 13 percent, from 2008, reflecting declines in wealth management revenues and lower net realized gains on securities, partially offset by higher net gains on loan sales and commissions on loans originated for others.
- M O R E -
Washington Trust
Page Three, July 21, 2009
Wealth management revenues for the second quarter of 2009 increased $541 thousand, or 10 percent, from the first quarter of 2009 and decreased $1.7 million, or 22 percent, from the second quarter a year ago. Second quarter 2009 amounts included seasonal tax preparation fee revenues of $339 thousand. For the six months ended June 30, 2009, wealth management revenues were down $3.5 million, or 24 percent, from the same period in 2008. Wealth management revenues are largely dependent on the value of assets under administration and are closely tied to the performance of the financial markets. Assets under administration totaled $3.316 billion at June 30, 2009, up $358.4 million, or 12 percent, from March 31, 2009 and up $168.7 million, or 5 percent, from December 31, 2008. Assets under administration were down $607.3 million, or 15 percent, from June 30, 2008. The decline in assets under administration was primarily due to lower valuations in the financial markets.
Due to strong residential mortgage refinancing and sales activity, net gains on loan sales and commissions on loans originated for others for the second quarter of 2009 increased by $508 thousand from the first quarter of 2009 and by $1.1 million from the second quarter of 2008. On a year-to-date basis, net gains on loan sales and commissions on loans originated for others increased by $1.7 million from the same period in 2008.
Net realized gains on securities amounted to $257 thousand in the second quarter of 2009, compared to net realized gains of $57 thousand in the first quarter of 2009 and $1.1 million in the second quarter of 2008. Also included in noninterest income were net unrealized gains on interest rate swap contracts of $341 thousand in the second quarter of 2009, compared to $60 thousand in the first quarter of 2009 and $26 thousand in the second quarter a year ago.
Noninterest expenses for the second quarter of 2009 increased by $1.9 million, or 11 percent, from the first quarter of 2009 and by $2.3 million, or 13 percent, from the second quarter of 2008. FDIC deposit insurance premiums for the second quarter of 2009 were up $1.5 million from the first quarter of 2009 and $1.9 million from the second quarter a year earlier. A special FDIC assessment of $1.35 million was recorded in the second quarter of 2009. On a year-to-date basis, total noninterest expenses increased by $3.5 million, or 10 percent, from 2008, which included a $2.3 million increase in FDIC deposit insurance costs. In addition to the special assessment, the year over year increase in FDIC deposit insurance costs also reflects higher assessment rates.
- M O R E -
Washington Trust
Page Four, July 21, 2009
Income tax expense amounted to $1.5 million for the three months ended June 30, 2009, as compared to $1.1 million for the first quarter of 2009 and $2.8 million for the second quarter of 2008. The effective tax rate for the second quarter of 2009 was 28.1%, as compared to 29.3% for the first quarter of 2009 and 31.6% for the second quarter of 2008.
ASSET QUALITY
Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure) amounted to $24.8 million, or 0.85% of total assets, at June 30, 2009, compared to $17.5 million, or 0.60% of total assets, at March 31, 2009. Nonperforming assets were $8.8 million, or 0.30% of total assets, at December 31, 2008 and $6.2 million, or 0.23% of total assets, at June 30, 2008. Nonaccrual loans totaled $22.7 million at June 30, 2009, up $7.2 million in the second quarter of 2009. Included in this increase was one relationship in the commercial real estate category totaling $3.2 million and two relationships in other commercial loans totaling $3.7 million. Total nonaccrual loans were $7.8 million at December 31, 2008 and $6.2 million at June 30, 2008.
At June 30, 2009, total 30 day+ delinquencies amounted to $25.6 million, or 1.35% of total loans, up $3.5 million in the second quarter of 2009 and up $8.0 million from the balance at December 31, 2008, with the largest increase in the commercial loan category. Commercial loan delinquencies amounted to $17.6 million, or 1.85% of total commercial loans, at June 30, 2009, up $2.6 million in the second quarter of 2009 and up $6.0 million from the balance at December 31, 2008.
Total residential mortgage and consumer loan 30 day+ delinquencies amounted to $8.1 million, or 0.85% of these loans, at June 30, 2009, up $892 thousand in the second quarter of 2009 and up $2.0 million from the balance at December 31, 2008. Total 90 day+ delinquencies in the residential mortgage and consumer loan categories amounted to $3.8 million (10 loans) and $2 thousand (2 loans), respectively, at June 30, 2009. Washington Trust has never offered a subprime residential loan program.
The loan loss provision charged to earnings amounted to $3.0 million for the second quarter of 2009, compared to $1.7 million for the first quarter of 2009 and $1.4 million for the second quarter of 2008. For the six months ended June 30, 2009 and 2008, the loan loss provision totaled $4.7 million and $1.85 million, respectively. The provision for loan losses was based on management’s assessment of economic and credit conditions, with particular emphasis on commercial and commercial real estate categories, as well as growth
- M O R E -
Washington Trust
Page Five, July 21, 2009
in the loan portfolio. Net charge-offs amounted to $1.4 million in the second quarter of 2009, as compared to net charge-offs of $927 thousand in the first quarter of 2009 and $161 thousand in the second quarter of 2008. For the six months ended June 30, 2009 and 2008, net charge-offs totaled $2.4 million and $164 thousand, respectively.
We believe that the declining credit quality trend is primarily related to a general weakening in national and regional economic conditions and that this trend may continue for the next few quarters. Management will continue to assess the adequacy of the allowance for loan losses in accordance with its established policies. The allowance for loan losses was $26.1 million, or 1.38% of total loans, at June 30, 2009, compared to $23.7 million, or 1.29% of total loans, at December 31, 2008 and $22.0 million, or 1.29% of total loans, at June 30, 2008.
FINANCIAL CONDITION
Total loans grew by $25.3 million, or 1.4 percent, in the second quarter of 2009, due to growth in the commercial loan portfolio. Commercial loans increased $39.0 million, or 4.3 percent, in the second quarter of 2009 due primarily to increases in commercial real estate loans. During the first six months of 2009, total loans grew by $52.1 million, or 2.8 percent, with commercial loan growth of $66.9 million, or 7.6 percent.
The investment securities portfolio amounted to $776.4 million at June 30, 2009, down by $57.5 million in the second quarter of 2009 and down by $89.8 million from the balance at December 31, 2008. The largest component of the investment securities portfolio is mortgage-backed securities, all of which are issued by U.S. Government agencies or U.S. Government-sponsored enterprises. At June 30, 2009, the net unrealized gain position on the investment securities portfolio was $4.2 million, including gross unrealized losses of $20.0 million. Approximately 90% of the gross unrealized losses on the investment securities portfolio were concentrated in variable rate trust preferred securities issued by financial services companies.
Total deposits amounted to $1.884 billion at June 30, 2009, essentially flat compared to March 31, 2009 and up by $92.9 million, or 5 percent, from December 31, 2008. Excluding out-of-market brokered certificates of deposit, in-market deposits grew by $10.7 million during the second quarter of 2009. Demand deposits and NOW account balances increased by $24.0 million, saving account balances grew by $6.3 million and money market account balances declined by $20.9 million during the second quarter of 2009. During the first six months of 2009, in-market deposits increased by $129.7 million, which included $45.4 million in wealth management client money market deposits previously held in outside money market funds.
– M O R E –
Washington Trust
Page Six, July 21, 2009
FHLBB advances totaled $688.4 million at June 30, 2009, down by $34.7 million from March 31, 2009 and down by $141.2 million from December 31, 2008.
DIVIDENDS DECLARED
The Board of Directors declared a quarterly dividend of 21 cents per share for the quarter ended June 30, 2009. The dividend was paid on July 10, 2009 to shareholders of record on June 30, 2009.
CONFERENCE CALL
Washington Trust Chairman and Chief Executive Officer John C. Warren, and David V. Devault, Executive Vice President, Chief Financial Officer and Secretary, will host a conference call on Wednesday, July 22, 2009 at 8:30 a.m. (Eastern Time) to discuss Washington Trust’s second quarter results. This call is being webcast by SNL IR Solutions and can be accessed through the Investor Relations section of the Washington Trust website, www.washtrust.com, or may be accessed by calling (800) 860-2442, or (412) 858-4600 for international callers. A replay of the call will be posted in this same location on the website shortly after the conclusion of the call. To listen to a replay of the conference call, dial (877) 344-7529 and enter Conference ID #: 431996. The replay will be available until 9:00 a.m. on July 30, 2009.
BACKGROUND
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a Rhode Island state-chartered bank founded in 1800. Washington Trust offers personal banking, business banking and wealth management services through its offices in Rhode Island, Massachusetts and southeastern Connecticut. Washington Trust Bancorp, Inc.’s common stock trades on the NASDAQ Global SelectÒ Market under the symbol “WASH.” Investor information is available on the Washington Trust’s web site: www.washtrust.com.
– M O R E –
Washington Trust
Page Seven, July 21, 2009
FORWARD-LOOKING STATEMENTS
This press release contains certain statements that may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including statements regarding our strategy, effectiveness of investment programs, evaluations of future interest rate trends and liquidity, expectations as to growth in assets, deposits and results of operations, success of acquisitions, future operations, market position, financial position, and prospects, plans, goals and objectives of management are forward-looking statements. The actual results, performance or achievements of Washington Trust could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits, reductions in the market value of wealth management assets under administration, changes in the value of securities and other assets, reductions in loan demand, changes in loan collectibility, default and charge-off rates, changes in the size and nature of the 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, 2008, as filed with the Securities and Exchange Commission, 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 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
Reported amounts are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). 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.
| Washington Trust Bancorp, Inc. and Subsidiaries | |
| CONSOLIDATED BALANCE SHEETS | |
| | | (unaudited) | |
| | | June 30, | | | December 31, | |
| (Dollars in thousands) | | 2009 | | | 2008 | |
| Assets: | | | | | | |
| Cash and noninterest-bearing balances due from banks | | $ | 29,355 | | | $ | 11,644 | |
| Interest-bearing balances due from banks | | | 17,875 | | | | 41,780 | |
| Federal funds sold and securities purchased under resale agreements | | | – | | | | 2,942 | |
| Other short-term investments | | | 3,031 | | | | 1,824 | |
| Mortgage loans held for sale | | | 6,139 | | | | 2,543 | |
| Securities available for sale, at fair value; | | | | | | | | |
| amortized cost $772,283 in 2009 and $869,433 in 2008 | | | 776,435 | | | | 866,219 | |
| Federal Home Loan Bank stock, at cost | | | 42,008 | | | | 42,008 | |
| Loans: | | | | | | | | |
| Commercial and other | | | 947,238 | | | | 880,313 | |
| Residential real estate | | | 618,859 | | | | 642,052 | |
| Consumer | | | 325,157 | | | | 316,789 | |
| Total loans | | | 1,891,254 | | | | 1,839,154 | |
| Less allowance for loan losses | | | 26,051 | | | | 23,725 | |
| Net loans | | | 1,865,203 | | | | 1,815,429 | |
| Premises and equipment, net | | | 25,520 | | | | 25,102 | |
| Accrued interest receivable | | | 9,883 | | | | 11,036 | |
| Investment in bank-owned life insurance | | | 44,053 | | | | 43,163 | |
| Goodwill | | | 58,114 | | | | 58,114 | |
| Identifiable intangible assets, net | | | 9,536 | | | | 10,152 | |
| Other assets | | | 32,656 | | | | 33,510 | |
| Total assets | | $ | 2,919,808 | | | $ | 2,965,466 | |
| | | | | | | | | |
| Liabilities: | | | | | | | | |
| Deposits: | | | | | | | | |
| Demand deposits | | $ | 187,830 | | | $ | 172,771 | |
| NOW accounts | | | 187,014 | | | | 171,306 | |
| Money market accounts | | | 356,726 | | | | 305,879 | |
| Savings accounts | | | 192,484 | | | | 173,485 | |
| Time deposits | | | 959,666 | | | | 967,427 | |
| Total deposits | | | 1,883,720 | | | | 1,790,868 | |
| Dividends payable | | | 3,365 | | | | 3,351 | |
| Federal Home Loan Bank advances | | | 688,431 | | | | 829,626 | |
| Junior subordinated debentures | | | 32,991 | | | | 32,991 | |
| Other borrowings | | | 22,039 | | | | 26,743 | |
| Accrued expenses and other liabilities | | | 46,969 | | | | 46,776 | |
| Total liabilities | | | 2,677,515 | | | | 2,730,355 | |
| | | | | | | | | |
| Shareholders’ Equity: | | | | | | | | |
| Common stock of $.0625 par value; authorized 30,000,000 shares; | | | | | | | | |
| issued 16,023,009 shares in 2009 and 16,018,868 shares in 2008 | | | 1,001 | | | | 1,001 | |
| Paid-in capital | | | 81,831 | | | | 82,095 | |
| Retained earnings | | | 165,591 | | | | 164,679 | |
| Accumulated other comprehensive loss | | | (5,579 | ) | | | (10,458 | ) |
| Treasury stock, at cost; 21,077 shares in 2009 and 84,191 in 2008 | | | (551 | ) | | | (2,206 | ) |
| Total shareholders’ equity | | | 242,293 | | | | 235,111 | |
| Total liabilities and shareholders’ equity | | $ | 2,919,808 | | | $ | 2,965,466 | |
| 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, | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Interest income: | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 24,147 | | | $ | 24,406 | | | $ | 48,286 | | | $ | 49,376 | |
| Interest on securities: | | | | | | | | | | | | | | | | |
| Taxable | | | 7,588 | | | | 8,302 | | | | 16,037 | | | | 16,718 | |
| Nontaxable | | | 778 | | | | 786 | | | | 1,558 | | | | 1,566 | |
| Dividends on corporate stock and Federal Home Loan Bank stock | | | 55 | | | | 489 | | | | 127 | | | | 1,109 | |
Other interest income | | | 9 | | | | 50 | | | | 26 | | | | 190 | |
| Total interest income | | | 32,577 | | | | 34,033 | | | | 66,034 | | | | 68,959 | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 8,481 | | | | 9,248 | | | | 18,028 | | | | 21,147 | |
| Federal Home Loan Bank advances | | | 7,112 | | | | 7,794 | | | | 14,339 | | | | 15,093 | |
| Junior subordinated debentures | | | 479 | | | | 509 | | | | 958 | | | | 847 | |
| Other interest expense | | | 244 | | | | 275 | | | | 489 | | | | 589 | |
| Total interest expense | | | 16,316 | | | | 17,826 | | | | 33,814 | | | | 37,676 | |
| Net interest income | | | 16,261 | | | | 16,207 | | | | 32,220 | | | | 31,283 | |
| Provision for loan losses | | | 3,000 | | | | 1,400 | | | | 4,700 | | | | 1,850 | |
| Net interest income after provision for loan losses | | | 13,261 | | | | 14,807 | | | | 27,520 | | | | 29,433 | |
| Noninterest income: | | | | | | | | | | | | | | | | |
| Wealth management services: | | | | | | | | | | | | | | | | |
| Trust and investment advisory fees | | | 4,402 | | | | 5,321 | | | | 8,524 | | | | 10,663 | |
| Mutual fund fees | | | 993 | | | | 1,445 | | | | 1,908 | | | | 2,786 | |
| Financial planning, commissions and other service fees | | | 559 | | | | 884 | | | | 935 | | | | 1,459 | |
| Wealth management services | | | 5,954 | | | | 7,650 | | | | 11,367 | | | | 14,908 | |
| Service charges on deposit accounts | | | 1,201 | | | | 1,208 | | | | 2,314 | | | | 2,368 | |
| Merchant processing fees | | | 2,086 | | | | 1,914 | | | | 3,435 | | | | 3,186 | |
| Income from bank-owned life insurance | | | 447 | | | | 453 | | | | 891 | | | | 900 | |
| Net gains on loan sales and commissions on loans originated for others | | | 1,552 | | | | 433 | | | | 2,596 | | | | 924 | |
| Net realized gains on securities | | | 257 | | | | 1,096 | | | | 314 | | | | 1,909 | |
| Net unrealized gains on interest rate swap contracts | | | 341 | | | | 26 | | | | 401 | | | | 145 | |
| Other income | | | 465 | | | | 528 | | | | 884 | | | | 870 | |
| Noninterest income, excluding other-than-temporary impairment losses | | | 12,303 | | | | 13,308 | | | | 22,202 | | | | 25,210 | |
| Total other-than-temporary impairment losses on securities | | | – | | | | (1,149 | ) | | | (4,244 | ) | | | (2,007 | ) |
| Portion of loss recognized in other comprehensive income (before taxes) | | | – | | | | – | | | | 2,253 | | | | – | |
| Net impairment losses recognized in earnings | | | – | | | | (1,149 | ) | | | (1,991 | ) | | | (2,007 | ) |
| Total noninterest income | | | 12,303 | | | | 12,159 | | | | 20,211 | | | | 23,203 | |
| Noninterest expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 10,359 | | | | 10,411 | | | | 20,834 | | | | 20,754 | |
| Net occupancy | | | 1,122 | | | | 1,064 | | | | 2,348 | | | | 2,202 | |
| Equipment | | | 1,036 | | | | 977 | | | | 2,011 | | | | 1,921 | |
| Merchant processing costs | | | 1,780 | | | | 1,598 | | | | 2,923 | | | | 2,666 | |
| Outsourced services | | | 568 | | | | 742 | | | | 1,354 | | | | 1,378 | |
| Legal, audit and professional fees | | | 664 | | | | 430 | | | | 1,339 | | | | 973 | |
| FDIC deposit insurance costs | | | 2,143 | | | | 251 | | | | 2,794 | | | | 507 | |
| Advertising and promotion | | | 491 | | | | 467 | | | | 792 | | | | 853 | |
| Amortization of intangibles | | | 308 | | | | 326 | | | | 616 | | | | 652 | |
| Other expenses | | | 1,858 | | | | 1,788 | | | | 3,708 | | | | 3,290 | |
| Total noninterest expense | | | 20,329 | | | | 18,054 | | | | 38,719 | | | | 35,196 | |
| Income before income taxes | | | 5,235 | | | | 8,912 | | | | 9,012 | | | | 17,440 | |
| Income tax expense | | | 1,470 | | | | 2,817 | | | | 2,577 | | | | 5,529 | |
| Net income | | $ | 3,765 | | | $ | 6,095 | | | $ | 6,435 | | | $ | 11,911 | |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding – basic | | | 15,983.6 | | | | 13,381.1 | | | | 15,963.2 | | | | 13,369.6 | |
| Weighted average shares outstanding – diluted | | | 16,037.4 | | | | 13,567.0 | | | | 16,009.1 | | | | 13,550.9 | |
| Per share information: | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.24 | | | $ | 0.45 | | | $ | 0.40 | | | $ | 0.89 | |
| Diluted earnings per share | | $ | 0.23 | | | $ | 0.45 | | | $ | 0.40 | | | $ | 0.88 | |
| Cash dividends declared per share | | $ | 0.21 | | | $ | 0.21 | | | $ | 0.42 | | | $ | 0.41 | |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | |
| | | At or for the Quarters Ended | |
| | | June 30, | | | Mar 31, | | | Dec. 31, | | | Sept. 30, | | | June 30, | |
| (Dollars in thousands, except per share amounts) | | 2009 | | | 2009 | | | 2008 | | | 2008 | | | 2008 | |
| Financial Data | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,919,808 | | | $ | 2,947,110 | | | $ | 2,965,466 | | | $ | 2,767,882 | | | $ | 2,732,989 | |
| Total loans | | | 1,891,254 | | | | 1,865,954 | | | | 1,839,154 | | | | 1,769,041 | | | | 1,705,650 | |
| Total securities | | | 776,435 | | | | 833,959 | | | | 866,219 | | | | 753,456 | | | | 790,064 | |
| Total deposits | | | 1,883,720 | | | | 1,884,324 | | | | 1,790,868 | | | | 1,737,251 | | | | 1,609,542 | |
| Total shareholders’ equity | | | 242,293 | | | | 238,727 | | | | 235,111 | | | | 184,762 | | | | 186,422 | |
| Net interest income | | | 16,261 | | | | 15,959 | | | | 17,586 | | | | 16,644 | | | | 16,207 | |
| Provision for loan losses | | | 3,000 | | | | 1,700 | | | | 1,850 | | | | 1,100 | | | | 1,400 | |
| Noninterest income, excluding other-than-temporary | | | | | | | | | | | | | | | | | | | | |
| impairment losses | | | 12,303 | | | | 9,899 | | | | 9,675 | | | | 11,572 | | | | 13,308 | |
| Net impairment losses recognized in earnings | | | - | | | | (1,991 | ) | | | (2,948 | ) | | | (982 | ) | | | (1,149 | ) |
| Noninterest expenses | | | 20,329 | | | | 18,390 | | | | 18,075 | | | | 18,471 | | | | 18,054 | |
| Income tax expense | | | 1,470 | | | | 1,107 | | | | 167 | | | | 1,623 | | | | 2,817 | |
| Net income | | | 3,765 | | | | 2,670 | | | | 4,221 | | | | 6,040 | | | | 6,095 | |
| | | | | | | | | | | | | | | | | | | | | |
| Share Data | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.24 | | | $ | 0.17 | | | $ | 0.27 | | | $ | 0.45 | | | $ | 0.45 | |
| Diluted earnings per share | | $ | 0.23 | | | $ | 0.17 | | | $ | 0.27 | | | $ | 0.44 | | | $ | 0.45 | |
| Dividends declared per share | | $ | 0.21 | | | $ | 0.21 | | | $ | 0.21 | | | $ | 0.21 | | | $ | 0.21 | |
| Book value per share | | $ | 15.14 | | | $ | 14.97 | | | $ | 14.75 | | | $ | 13.76 | | | $ | 13.91 | |
| Tangible book value per share – Non-GAAP* | | $ | 10.91 | | | $ | 10.71 | | | $ | 10.47 | | | $ | 8.80 | | | $ | 9.34 | |
| Market value per share | | $ | 17.83 | | | $ | 16.25 | | | $ | 19.75 | | | $ | 26.60 | | | $ | 19.70 | |
| | | | | | | | | | | | | | | | | | | | | |
| Shares outstanding at end of period | | | 16,001.9 | | | | 15,949.9 | | | | 15,934.7 | | | | 13,423.2 | | | | 13,398.2 | |
| Weighted average shares outstanding – basic | | | 15,983.6 | | | | 15,942.7 | | | | 15,765.4 | | | | 13,409.5 | | | | 13,381.1 | |
| Weighted average shares outstanding – diluted | | | 16,037.4 | | | | 15,997.8 | | | | 15,871.6 | | | | 13,588.3 | | | | 13,566.7 | |
| | | | | | | | | | | | | | | | | | | | | |
| Key Ratios | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.52 | % | | | 0.36 | % | | | 0.59 | % | | | 0.88 | % | | | 0.92 | % |
| Return on average tangible assets – Non-GAAP* | | | 0.53 | % | | | 0.37 | % | | | 0.60 | % | | | 0.90 | % | | | 0.94 | % |
| Return on average equity | | | 6.22 | % | | | 4.50 | % | | | 7.31 | % | | | 12.94 | % | | | 12.88 | % |
| Return on average tangible equity – Non-GAAP* | | | 8.63 | % | | | 6.30 | % | | | 10.25 | % | | | 19.25 | % | | | 19.07 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Capital Ratios | | | | | | | | | | | | | | | | | | | | |
| Tier 1 risk-based capital | | | 10.98 | % (i) | | | 11.00 | % | | | 11.29 | % | | | 9.20 | % | | | 9.44 | % |
| Total risk-based capital | | | 12.23 | % (i) | | | 12.25 | % | | | 12.54 | % | | | 10.45 | % | | | 10.69 | % |
| Tier 1 leverage ratio | | | 7.53 | % (i) | | | 7.35 | % | | | 7.53 | % | | | 6.10 | % | | | 6.32 | % |
| Equity to assets | | | 8.30 | % | | | 8.10 | % | | | 7.93 | % | | | 6.68 | % | | | 6.82 | % |
| Tangible equity to tangible assets – Non-GAAP* | | | 6.12 | % | | | 5.93 | % | | | 5.76 | % | | | 4.38 | % | | | 4.68 | % |
| (i) – estimated | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Wealth Management Assets Under Administration | | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 2,957,918 | | | $ | 3,147,649 | | | $ | 3,624,502 | | | $ | 3,923,595 | | | $ | 3,878,746 | |
| Net investment (depreciation) appreciation & income | | | 313,999 | | | | (150,855 | ) | | | (466,461 | ) | | | (322,953 | ) | | | 10,420 | |
| Net customer cash flows | | | 44,391 | | | | (38,876 | ) | | | (10,392 | ) | | | 23,860 | | | | 34,429 | |
| Balance at end of period | | $ | 3,316,308 | | | $ | 2,957,918 | | | $ | 3,147,649 | | | $ | 3,624,502 | | | $ | 3,923,595 | |
| | * - 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 | | |
| | | June 30, | | | June 30, |
| (Dollars in thousands, except per share amounts) | | 2009 | | | 2008 |
| Financial Data | | | | | |
| Net interest income | | $ | 32,220 | | | $ | 31,283 | |
| Provision for loan losses | | | 4,700 | | | | 1,850 | |
| Noninterest income, excluding other-than-temporary impairment losses | | | 22,202 | | | | 25,210 | |
| Net impairment losses recognized in earnings | | | (1,991 | ) | | | (2,007 | ) |
| Noninterest expenses | | | 38,719 | | | | 35,196 | |
| Income tax expense | | | 2,577 | | | | 5,529 | |
| Net income | | | 6,435 | | | | 11,911 | |
| | | | | | | | | | |
| Share Data | | | | | | | | | |
| Basic earnings per share | | $ | 0.40 | | | $ | 0.89 | |
| Diluted earnings per share | | $ | 0.40 | | | $ | 0.88 | |
| Dividends declared per share | | $ | 0.42 | | | $ | 0.41 | |
| | | | | | | | | | |
| Weighted average shares outstanding – basic | | | 15,963.2 | | | | 13,369.6 | |
| Weighted average shares outstanding – diluted | | | 16,009.1 | | | | 13,550.9 | |
| | | | | | | | | | |
| Key Ratios | | | | | | | | | |
| Return on average assets | | | 0.44 | % | | | 0.91 | % |
| Return on average tangible assets – Non-GAAP* | | | 0.45 | % | | | 0.93 | % |
| Return on average equity | | | 5.36 | % | | | 12.55 | % |
| Return on average tangible equity – Non-GAAP* | | | 7.48 | % | | | 18.58 | % |
| | | | | | | | | | |
| Asset Quality Data | | | | | | | | | |
| Allowance for Loan Losses | | | | | | | | | |
| Balance at beginning of period | | $ | 23,725 | | | $ | 20,277 | |
| Provision charged to earnings | | | 4,700 | | | | 1,850 | |
| Charge-offs | | | (2,509 | ) | | | (326 | ) |
| Recoveries | | | 135 | | | | 162 | |
| Balance at end of period | | $ | 26,051 | | | $ | 21,963 | |
| | | | | | | | | | |
| Net Loan Charge-Offs | | | | | | | | | |
| Commercial: | | | | | | | | | |
| Mortgages | | $ | 1,255 | | | $ | (68 | ) |
| Construction and development | | | - | | | | - | |
| Other | | | 864 | | | | 113 | |
| Residential: | | | | | | | | | |
| Mortgages | | | 159 | | | | 33 | |
| Homeowner construction | | | - | | | | - | |
| Consumer | | | 96 | | | | 86 | |
| Total | | $ | 2,374 | | | $ | 164 | |
| | | | | | | | | | |
| Net charge-offs to average loans (annualized) | | | 0.25 | % | | | 0.02 | % |
| | | | | | | | | | |
| Wealth Management Assets Under Administration | | | | | | | | | |
| Balance at beginning of period | | $ | 3,147,649 | | | $ | 4,014,352 | |
| Net investment (depreciation) appreciation & income | | | 163,144 | | | | (191,495 | ) |
| Net customer cash flows | | | 5,515 | | | | 100,738 | |
| Balance at end of period | | $ | 3,316,308 | | | $ | 3,923,595 | |
| | * - See the section labeled “Supplemental Information – Non-GAAP Financial Measures” at the end of this document. |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | |
| | | For the Quarters Ended | |
| | | June 30, | | | Mar. 31, | | | Dec. 31, | | | Sept. 30, | | | June 30, | |
| (Dollars in thousands, except per share amounts) | | 2009 | | | 2009 | | | 2008 | | | 2008 | | | 2008 | |
| Average Yields (taxable equivalent basis) | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | |
| Residential real estate loans | | | 5.38 | % | | | 5.47 | % | | | 5.50 | % | | | 5.54 | % | | | 5.55 | % |
| Commercial and other loans | | | 5.37 | % | | | 5.47 | % | | | 6.19 | % | | | 6.28 | % | | | 6.51 | % |
| Consumer loans | | | 4.19 | % | | | 4.29 | % | | | 5.00 | % | | | 5.38 | % | | | 5.48 | % |
| Total loans | | | 5.17 | % | | | 5.27 | % | | | 5.74 | % | | | 5.86 | % | | | 5.98 | % |
| Cash, federal funds sold | | | | | | | | | | | | | | | | | | | | |
| and other short-term investments | | | 0.27 | % | | | 0.26 | % | | | 0.30 | % | | | 1.63 | % | | | 1.64 | % |
| Taxable debt securities | | | 4.21 | % | | | 4.45 | % | | | 4.87 | % | | | 4.85 | % | | | 4.86 | % |
| Nontaxable debt securities | | | 5.80 | % | | | 5.86 | % | | | 5.64 | % | | | 5.63 | % | | | 5.67 | % |
| Corporate stocks and FHLBB stock | | | 0.64 | % | | | 0.83 | % | | | 3.29 | % | | | 3.58 | % | | | 4.46 | % |
| Total securities | | | 4.11 | % | | | 4.26 | % | | | 4.74 | % | | | 4.74 | % | | | 4.87 | % |
| Total interest-earning assets | | | 4.83 | % | | | 4.93 | % | | | 5.41 | % | | | 5.49 | % | | | 5.60 | % |
| Liabilities: | | | | | | | | | | | | | | | | | | | | |
| NOW accounts | | | 0.17 | % | | | 0.18 | % | | | 0.17 | % | | | 0.18 | % | | | 0.19 | % |
| Money market accounts | | | 0.98 | % | | | 1.55 | % | | | 1.91 | % | | | 1.79 | % | | | 1.79 | % |
| Savings accounts | | | 0.26 | % | | | 0.40 | % | | | 0.48 | % | | | 0.47 | % | | | 0.50 | % |
| Time deposits | | | 3.06 | % | | | 3.30 | % | | | 3.51 | % | | | 3.68 | % | | | 3.88 | % |
| FHLBB advances | | | 4.11 | % | | | 3.81 | % | | | 4.05 | % | | | 4.20 | % | | | 4.15 | % |
| Junior subordinated debentures | | | 5.82 | % | | | 5.89 | % | | | 6.13 | % | | | 6.31 | % | | | 6.34 | % |
| Other | | | 4.70 | % | | | 4.22 | % | | | 4.20 | % | | | 4.68 | % | | | 4.60 | % |
| Total interest-bearing liabilities | | | 2.66 | % | | | 2.83 | % | | | 3.09 | % | | | 3.16 | % | | | 3.18 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Interest rate spread (taxable equivalent basis) | | | 2.17 | % | | | 2.10 | % | | | 2.32 | % | | | 2.33 | % | | | 2.42 | % |
| Net interest margin (taxable equivalent basis) | | | 2.45 | % | | | 2.39 | % | | | 2.65 | % | | | 2.62 | % | | | 2.71 | % |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | | | |
| | | Period End Balances At | |
| (Dollars in thousands) | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | | | 6/30/2008 | |
| Loans | | | | | | | | | | | | | | | |
| Commercial: | Commercial mortgages | | $ | 439,182 | | | $ | 412,817 | | | $ | 407,904 | | | $ | 394,085 | | | $ | 361,623 | |
| | Construction and development | | | 64,504 | | | | 49,215 | | | | 49,599 | | | | 51,592 | | | | 60,606 | |
| | Other | | | 443,552 | | | | 446,251 | | | | 422,810 | | | | 396,161 | | | | 372,784 | |
| | Total commercial | | | 947,238 | | | | 908,283 | | | | 880,313 | | | | 841,838 | | | | 795,013 | |
| Residential: | Mortgages | | | 606,324 | | | | 621,141 | | | | 626,663 | | | | 604,205 | | | | 593,995 | |
| | Homeowner construction | | | 12,535 | | | | 15,996 | | | | 15,389 | | | | 14,124 | | | | 14,356 | |
| | Total residential real estate | | | 618,859 | | | | 637,137 | | | | 642,052 | | | | 618,329 | | | | 608,351 | |
| Consumer: | Home equity lines | | | 195,612 | | | | 183,058 | | | | 170,662 | | | | 158,837 | | | | 152,339 | |
| | Home equity loans | | | 70,806 | | | | 79,881 | | | | 89,297 | | | | 93,690 | | | | 94,316 | |
| | Other | | | 58,739 | | | | 57,595 | | | | 56,830 | | | | 56,347 | | | | 55,631 | |
| | Total consumer | | | 325,157 | | | | 320,534 | | | | 316,789 | | | | 308,874 | | | | 302,286 | |
| | Total loans | | $ | 1,891,254 | | | $ | 1,865,954 | | | $ | 1,839,154 | | | $ | 1,769,041 | | | $ | 1,705,650 | |
| (Dollars in thousands) | | | |
| | | At June 30, 2009 | |
| Commercial Real Estate Loans by Property Location | | Balance | | | % of Total |
| Rhode Island, Connecticut, Massachusetts | | $ | 448,163 | | | | 89.0 | % |
| New York, New Jersey, Pennsylvania | | | 40,254 | | | | 8.0 | % |
| New Hampshire, Maine | | | 13,628 | | | | 2.7 | % |
| Other | | | 1,641 | | | | 0.3 | % |
| Total commercial real estate loans (1) | | $ | 503,686 | | | | 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. |
| (Dollars in thousands) | | | | | | |
| | | At June 30, 2009 | |
| Residential Mortgages by Property Location | | Balance | | | % of Total |
| Rhode Island, Connecticut, Massachusetts | $ | 556,617 | | | | 89.9 | % |
| New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | | | 24,459 | | | | 4.0 | % |
| Ohio, Michigan | | | 16,615 | | | | 2.7 | % |
| California, Washington, Oregon | | | 11,625 | | | | 1.9 | % |
| Colorado, Texas, New Mexico, Utah | | | 5,066 | | | | 0.8 | % |
| Georgia | | | 2,529 | | | | 0.4 | % |
| New Hampshire, Vermont | | | 1,367 | | | | 0.2 | % |
| Other | | | 581 | | | | 0.1 | % |
| Total residential mortgages | | $ | 618,859 | | | | 100.0 | % |
| | | Period End Balances At | |
| (Dollars in thousands) | | 6/30/2009 | | | 3/31/2009 | | | 12/31/2008 | | | 9/30/2008 | | | 6/30/2008 | |
| Deposits | | | | | | | | | | | | | | | |
| Demand deposits | | $ | 187,830 | | | $ | 170,975 | | | $ | 172,771 | | | $ | 187,839 | | | $ | 187,865 | |
| NOW accounts | | | 187,014 | | | | 179,903 | | | | 171,306 | | | | 164,829 | | | | 170,733 | |
| Money market accounts | | | 356,726 | | | | 377,603 | | | | 305,879 | | | | 298,106 | | | | 305,860 | |
| Savings accounts | | | 192,484 | | | | 186,152 | | | | 173,485 | | | | 171,856 | | | | 177,490 | |
| Time deposits | | | 959,666 | | | | 969,691 | | | | 967,427 | | | | 914,621 | | | | 767,594 | |
| Total deposits | | $ | 1,883,720 | | | $ | 1,884,324 | | | $ | 1,790,868 | | | $ | 1,737,251 | | | $ | 1,609,542 | |
| | | | | | | | | | | | | | | | | | | | | |
| Out-of-market brokered certificates of deposits | | | | | | | | | | | | | | | | | | | | |
| included in time deposits | | $ | 151,175 | | | $ | 162,463 | | | $ | 187,987 | | | $ | 187,925 | | | $ | 113,725 | |
| | | | | | | | | | | | | | | | | | | | | |
| In-market deposits, excluding out of market | | | | | | | | | | | | | | | | | | | | |
| brokered certificates of deposit | | $ | 1,732,545 | | | $ | 1,721,861 | | | $ | 1,602,881 | | | $ | 1,549,326 | | | $ | 1,495,817 | |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | |
| (Dollars in thousands) | | At June 30, 2009 | |
| | | Amortized | | | Unrealized | | | Unrealized | | | Fair | |
| Securities Available for Sale | | Cost (1) | | | Gains | | | Losses | | | Value | |
| U.S. Treasury obligations and obligations of | | | | | | | | | | | | |
| U.S. government-sponsored agencies | | $ | 51,545 | | | $ | 3,817 | | | $ | − | | | $ | 55,362 | |
| Mortgage-backed securities issued by U.S. government | | | | | | | | | | | | | | | | |
| agencies and U.S. government-sponsored enterprises | | | 586,196 | | | | 18,116 | | | | (956 | ) | | | 603,356 | |
| States and political subdivisions | | | 80,669 | | | | 976 | | | | (554 | ) | | | 81,091 | |
| Trust preferred securities: | | | | | | | | | | | | | | | | |
| Individual name issuers | | | 30,544 | | | | − | | | | (13,640 | ) | | | 16,904 | |
| Collateralized debt obligations | | | 6,142 | | | | − | | | | (4,261 | ) | | | 1,881 | |
| Corporate bonds | | | 13,174 | | | | 1,223 | | | | − | | | | 14,397 | |
| Common stocks | | | 659 | | | | − | | | | (40 | ) | | | 619 | |
| Perpetual preferred stocks | | | 3,354 | | | | − | | | | (529 | ) | | | 2,825 | |
| Total securities available for sale | | $ | 772,283 | | | $ | 24,132 | | | $ | (19,980 | ) | | $ | 776,435 | |
| (1) | Net of other-than-temporary impairment losses recognized in earnings, other than such noncredit-related amounts reversed on January 1, 2009 in accordance with FASB Staff Position No. FAS 115-2 and FAS 124-2. |
| (Dollars in thousands) | | At December 31, 2008 | |
| | | Amortized | | | Unrealized | | | Unrealized | | | Fair | |
| Securities Available for Sale | | Cost (1) | | | Gains | | | Losses | | | Value | |
| U.S. Treasury obligations and obligations of | | | | | | | | | | | | |
| U.S. government-sponsored agencies | | $ | 59,022 | | | $ | 5,355 | | | $ | − | | | $ | 64,377 | |
| Mortgage-backed securities issued by U.S. government | | | | | | | | | | | | | | | | |
| agencies and U.S. government-sponsored enterprises | | | 675,159 | | | | 12,543 | | | | (4,083 | ) | | | 683,619 | |
| States and political subdivisions | | | 80,680 | | | | 1,348 | | | | (815 | ) | | | 81,213 | |
| Trust preferred securities: | | | | | | | | | | | | | | | | |
| Individual name issuers | | | 30,525 | | | | − | | | | (13,732 | ) | | | 16,793 | |
| Collateralized debt obligations | | | 5,633 | | | | − | | | | (3,693 | ) | | | 1,940 | |
| Corporate bonds | | | 12,973 | | | | 603 | | | | − | | | | 13,576 | |
| Common stocks | | | 942 | | | | 50 | | | | − | | | | 992 | |
| Perpetual preferred stocks | | | 4,499 | | | | 2 | | | | (792 | ) | | | 3,709 | |
| Total securities available for sale | | $ | 869,433 | | | $ | 19,901 | | | $ | (23,115 | ) | | $ | 866,219 | |
| (1) | Net of other-than-temporary impairment losses recognized in earnings. |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
The following is supplemental information concerning trust preferred investment securities:
| | At June 30, 2009 |
| | Credit Rating | Amortized | Unrealized | Fair |
| (Dollars in thousands) | Moody’s | S&P (b) | Cost (a) | Gains | Losses | Value |
| Trust preferred securities: | | | | | | |
| Individual name issuers (c): | | | | | | |
| JPMorgan Chase & Co. | A1 | BBB+ | $9,709 | $ – | $(4,334) | $5,375 |
| Bank of America Corporation | Baa3 | B | 5,721 | – | (2,605) | 3,116 |
| Wells Fargo & Company | A3 | A- | 5,095 | – | (2,387) | 2,708 |
| SunTrust Banks, Inc. | Baa2 | BB+ | 4,162 | – | (1,958) | 2,205 |
| Northern Trust Corporation | A2 | A- | 1,978 | – | (952) | 1,026 |
| State Street Corporation | A2 | BBB+ | 1,966 | – | (330) | 1,636 |
| Huntington Bancshares Incorporated | Baa3 | B | 1,913 | – | (1,074) | 838 |
| Total individual name issuers | | | 30,544 | – | (13,640) | 16,904 |
| | | | | | | |
| Collateralized debt obligations (CDO): | | | | | | |
| Tropic CDO 1, tranche A4L (d) | Caa3 | | 3,650 | – | (2,241) | 1,409 |
Preferred Term Securities [PreTSL] XXV, tranche C1 (e) | Ca | | 2,492 | – | (2,020) | 472 |
| Total collateralized debt obligations | | | 6,142 | – | (4,261) | 1,881 |
| Total trust preferred securities | | | $36,686 | $ – | $(17,901) | $18,785 |
| (a) | Net of other-than-temporary impairment losses recognized in earnings, other than such noncredit-related amounts reversed on January 1, 2009 in accordance with FASB Staff Position No. FAS 115-2 and FAS 124-2. |
| (b) | Standard & Poor’s (“S&P”). |
| (c) | Consists of various series of trust preferred securities issued by seven corporate financial institutions. |
| (d) | This investment security is not rated by S&P. As of June 30, 2009, 12 of the 38 pooled institutions have invoked their original contractual right to defer interest payments. This investment security was placed on nonaccrual status as of March 31, 2009. |
| (e) | This investment security is not rated by S&P. As of June 30, 2009, 11 of the 73 pooled institutions have invoked their original contractual right to defer interest payments. In the fourth quarter of 2008, the tranche held by Washington Trust began deferring interest payments until future periods. This investment security was placed on nonaccrual status as of December 31, 2008. |
The following is supplemental information concerning common and perpetual preferred stock investment securities:
| | | At June 30, 2009 | |
| | | Amortized | | | Unrealized | | | Fair | |
| (Dollars in thousands) | | Cost (a) | | | Gains | | | Losses | | | Value | |
| Common and perpetual preferred stocks | | | | | | | | | | | | |
| Common stock | | $ | 659 | | | $ | – | | | $ | (40 | ) | | $ | 619 | |
| Perpetual preferred stocks: | | | | | | | | | | | | | | | | |
| Financials | | | 2,354 | | | | – | | | | (298 | ) | | | 2,056 | |
| Utilities | | | 1,000 | | | | – | | | | (231 | ) | | | 769 | |
| Total perpetual preferred stocks | | | 3,354 | | | | – | | | | (529 | ) | | | 2,825 | |
| Total common and perpetual preferred stocks | | $ | 4,013 | | | $ | – | | | $ | (569 | ) | | $ | 3,444 | |
| (a) | Net of other-than-temporary impairment losses recognized in earnings in accordance with FASB Staff Position No. FAS 115-2 and FAS 124-2. |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | |
| (Dollars in thousands) | | For the Quarters Ended | |
| | | June 30, | | | Mar. 31, | | | Dec. 31, | | | Sept. 30, | | | June 30, | |
| Asset Quality Data | | 2009 | | | 2009 | | | 2008 | | | 2008 | | | 2008 | |
| Allowance for Loan Losses | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 24,498 | | | $ | 23,725 | | | $ | 22,631 | | | $ | 21,963 | | | $ | 20,724 | |
| Provision charged to earnings | | | 3,000 | | | | 1,700 | | | | 1,850 | | | | 1,100 | | | | 1,400 | |
| Charge-offs | | | (1,483 | ) | | | (1,026 | ) | | | (776 | ) | | | (492 | ) | | | (219 | ) |
| Recoveries | | | 36 | | | | 99 | | | | 20 | | | | 60 | | | | 58 | |
| Balance at end of period | | $ | 26,051 | | | $ | 24,498 | | | $ | 23,725 | | | $ | 22,631 | | | $ | 21,963 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Loan Charge-Offs | | | | | | | | | | | | | | | | | | | | |
| Commercial: | | | | | | | | | | | | | | | | | | | | |
| Mortgages | | $ | 794 | | | $ | 461 | | | $ | 185 | | | $ | – | | | $ | (43 | ) |
| Construction and development | | | – | | | | – | | | | – | | | | – | | | | – | |
| Other | | | 515 | | | | 349 | | | | 497 | | | | 386 | | | | 132 | |
| Residential: | | | | | | | | | | | | | | | | | | | | |
| Mortgages | | | 127 | | | | 32 | | | | 62 | | | | 9 | | | | 33 | |
| Homeowner construction | | | – | | | | – | | | | – | | | | – | | | | – | |
| Consumer | | | 11 | | | | 85 | | | | 12 | | | | 37 | | | | 39 | |
| Total | | $ | 1,447 | | | $ | 927 | | | $ | 756 | | | $ | 432 | | | $ | 161 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | |
| (Dollars in thousands) | | | |
| | | June 30, | | | Mar. 31, | | | Dec. 31, | | | Sept. 30, | | | June 30, | |
| Asset Quality Data | | 2009 | | | 2009 | | | 2008 | | | 2008 | | | 2008 | |
| Past Due Loans | | | | | | | | | | | | | | | |
| Loans 30–59 Days Past Due | | | | | | | | | | | | | | | |
| Commercial real estate | | $ | 2,635 | | | $ | 2,027 | | | $ | 3,466 | | | $ | 2,036 | | | $ | 5,300 | |
| Other commercial loans | | | 2,255 | | | | 3,537 | | | | 2,024 | | | | 1,524 | | | | 1,382 | |
| Residential mortgages | | | 1,820 | | | | 3,000 | | | | 3,113 | | | | 1,619 | | | | 1,624 | |
| Consumer loans | | | 1,042 | | | | 419 | | | | 76 | | | | 77 | | | | 476 | |
| Loans 30–59 days past due | | $ | 7,752 | | | $ | 8,983 | | | $ | 8,679 | | | $ | 5,256 | | | $ | 8,782 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans 60–89 Days Past Due | | | | | | | | | | | | | | | | | | | | |
| Commercial real estate | | $ | 3,537 | | | $ | 194 | | | $ | 6 | | | $ | 143 | | | $ | 1,078 | |
| Other commercial loans | | | 514 | | | | 461 | | | | 785 | | | | 114 | | | | 1,013 | |
| Residential mortgages | | | 1,324 | | | | 165 | | | | 1,452 | | | | 296 | | | | 1 | |
| Consumer loans | | | 44 | | | | – | | | | 401 | | | | – | | | | 87 | |
| Loans 60-89 days past due | | $ | 5,419 | | | $ | 820 | | | $ | 2,644 | | | $ | 553 | | | $ | 2,179 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans 90 Days or more Past Due | | | | | | | | | | | | | | | | | | | | |
| Commercial real estate | | $ | 2,760 | | | $ | 4,269 | | | $ | 1,826 | | | $ | 1,870 | | | $ | 981 | |
| Other commercial loans | | | 5,861 | | | | 4,453 | | | | 3,408 | | | | 3,264 | | | | 2,644 | |
| Residential mortgages | | | 3,826 | | | | 3,575 | | | | 973 | | | | 188 | | | | 408 | |
| Consumer loans | | | 2 | | | | 7 | | | | 77 | | | | 48 | | | | – | |
| Loans 90 days or more past due | | $ | 12,449 | | | $ | 12,304 | | | $ | 6,284 | | | $ | 5,370 | | | $ | 4,033 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Past Due Loans | | | | | | | | | | | | | | | | | | | | |
| Commercial real estate | | $ | 8,932 | | | $ | 6,490 | | | $ | 5,298 | | | $ | 4,049 | | | $ | 7,359 | |
| Other commercial loans | | | 8,630 | | | | 8,451 | | | | 6,217 | | | | 4,902 | | | | 5,039 | |
| Residential mortgages | | | 6,970 | | | | 6,740 | | | | 5,538 | | | | 2,103 | | | | 2,033 | |
| Consumer loans | | | 1,088 | | | | 426 | | | | 554 | | | | 125 | | | | 563 | |
| Total past due loans | | $ | 25,620 | | | $ | 22,107 | | | $ | 17,607 | | | $ | 11,179 | | | $ | 14,994 | |
| | | | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | |
| (Dollars in thousands) | | | |
| | | June 30, | | | Mar. 31, | | | Dec. 31, | | | Sept. 30, | | | June 30, | |
| Asset Quality Data | | 2009 | | | 2009 | | | 2008 | | | 2008 | | | 2008 | |
| Nonperforming Assets | | | | | | | | | | | | | | | |
| Commercial mortgages | | $ | 5,995 | | | $ | 4,384 | | | $ | 1,942 | | | $ | 1,986 | | | $ | 1,991 | |
| Commercial construction and development | | | – | | | | – | | | | – | | | | – | | | | – | |
| Other commercial | | | 10,948 | | | | 6,433 | | | | 3,845 | | | | 3,555 | | | | 2,948 | |
| Residential real estate mortgages | | | 5,168 | | | | 4,057 | | | | 1,754 | | | | 962 | | | | 1,072 | |
| Consumer | | | 556 | | | | 564 | | | | 236 | | | | 208 | | | | 170 | |
| Total nonaccrual loans | | $ | 22,667 | | | $ | 15,438 | | | $ | 7,777 | | | $ | 6,711 | | | $ | 6,181 | |
| Nonaccrual investment securities | | | 1,881 | | | | 1,928 | | | | 633 | | | | – | | | | – | |
| Property acquired through foreclosure or repossession | | | 236 | | | | 170 | | | | 392 | | | | 113 | | | | – | |
| Total nonperforming assets | | $ | 24,784 | | | $ | 17,536 | | | $ | 8,802 | | | $ | 6,824 | | | $ | 6,181 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total past due loans to total loans | | | 1.35 | % | | | 1.18 | % | | | 0.96 | % | | | 0.63 | % | | | 0.88 | % |
| Nonperforming assets to total assets | | | 0.85 | % | | | 0.60 | % | | | 0.30 | % | | | 0.25 | % | | | 0.23 | % |
| Nonaccrual loans to total loans | | | 1.20 | % | | | 0.83 | % | | | 0.42 | % | | | 0.38 | % | | | 0.36 | % |
| Allowance for loan losses to nonaccrual loans | | | 114.93 | % | | | 158.69 | % | | | 305.07 | % | | | 337.22 | % | | | 355.33 | % |
| Allowance for loan losses to total loans | | | 1.38 | % | | | 1.31 | % | | | 1.29 | % | | | 1.28 | % | | | 1.29 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Troubled Debt Restructured Loans | | | | | | | | | | | | | | | | | | | | |
| Accruing troubled debt restructured loans | | | | | | | | | | | | | | | | | | | | |
| Commercial mortgages | | $ | 1,576 | | | $ | – | | | $ | – | | | $ | – | | | $ | 1,673 | |
| Other commercial | | | 323 | | | | 59 | | | | – | | | | – | | | | – | |
| Residential real estate mortgages | | | 2,190 | | | | 262 | | | | 263 | | | | 264 | | | | 266 | |
| Consumer | | | 780 | | | | 479 | | | | 607 | | | | 216 | | | | 8 | |
| Accruing troubled debt restructured loans | | | 4,869 | | | | 800 | | | | 870 | | | | 480 | | | | 1,947 | |
| Nonaccrual troubled debt restructured loans | | | | | | | | | | | | | | | | | | | | |
| Other commercial | | | 136 | | | | 86 | | | | – | | | | – | | | | 13 | |
| Residential real estate mortgages | | | 367 | | | | | | | | | | | | | | | | | |
| Consumer | | | – | | | | 7 | | | | – | | | | – | | | | – | |
| Nonaccrual troubled debt restructured loans | | | 503 | | | | 93 | | | | – | | | | – | | | | – | |
| Total troubled debt restructured loans | | $ | 5,372 | | | $ | 893 | | | $ | 870 | | | $ | 480 | | | $ | 1,960 | |
| | | | | | | | | | | | | | | | | | | | | |
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, | | 2009 | | | 2008 | |
| | | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| (Dollars in thousands) | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| Assets | | | | | | | | | | | | | | | | | | |
| Residential real estate loans | | $ | 637,633 | | | $ | 8,550 | | | | 5.38 | % | | $ | 598,274 | | | $ | 8,257 | | | | 5.55 | % |
| Commercial and other loans | | | 916,329 | | | | 12,270 | | | | 5.37 | % | | | 749,468 | | | | 12,135 | | | | 6.51 | % |
| Consumer loans | | | 323,629 | | | | 3,378 | | | | 4.19 | % | | | 297,802 | | | | 4,059 | | | | 5.48 | % |
| Total loans | | | 1,877,591 | | | | 24,198 | | | | 5.17 | % | | | 1,645,544 | | | | 24,451 | | | | 5.98 | % |
| Cash, federal funds sold | | | | | | | | | | | | | | | | | | | | | | | | |
| and other short-term investments | | | 12,459 | | | | 9 | | | | 0.27 | % | | | 12,214 | | | | 50 | | | | 1.64 | % |
| Taxable debt securities | | | 723,199 | | | | 7,588 | | | | 4.21 | % | | | 687,461 | | | | 8,302 | | | | 4.86 | % |
| Nontaxable debt securities | | | 80,672 | | | | 1,166 | | | | 5.80 | % | | | 81,649 | | | | 1,152 | | | | 5.67 | % |
| Corporate stocks and FHLBB stock | | | 47,608 | | | | 75 | | | | 0.64 | % | | | 49,169 | | | | 545 | | | | 4.46 | % |
| Total securities | | | 863,938 | | | | 8,838 | | | | 4.10 | % | | | 830,493 | | | | 10,049 | | | | 4.87 | % |
| Total interest-earning assets | | | 2,741,529 | | | | 33,036 | | | | 4.83 | % | | | 2,476,037 | | | | 35,500 | | | | 5.60 | % |
| Non interest-earning assets | | | 182,473 | | | | | | | | | | | | 165,806 | | | | | | | | | |
| Total assets | | $ | 2,924,002 | | | | | | | | | | | $ | 2,641,843 | | | | | | | | | |
| Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 180,969 | | | $ | 78 | | | | 0.17 | % | | $ | 167,755 | | | $ | 81 | | | | 0.19 | % |
| Money market accounts | | | 376,559 | | | | 917 | | | | 0.98 | % | | | 315,075 | | | | 1,399 | | | | 1.79 | % |
| Savings accounts | | | 188,208 | | | | 123 | | | | 0.26 | % | | | 174,897 | | | | 218 | | | | 0.50 | % |
| Time deposits | | | 965,492 | | | | 7,363 | | | | 3.06 | % | | | 782,825 | | | | 7,550 | | | | 3.88 | % |
| FHLBB advances | | | 693,860 | | | | 7,112 | | | | 4.11 | % | | | 755,455 | | | | 7,794 | | | | 4.15 | % |
| Junior subordinated debentures | | | 32,991 | | | | 479 | | | | 5.82 | % | | | 32,311 | | | | 509 | | | | 6.34 | % |
| Other | | | 20,805 | | | | 244 | | | | 4.70 | % | | | 24,016 | | | | 275 | | | | 4.60 | % |
| Total interest-bearing liabilities | | | 2,458,884 | | | | 16,316 | | | | 2.66 | % | | | 2,252,334 | | | | 17,826 | | | | 3.18 | % |
| Demand deposits | | | 179,350 | | | | | | | | | | | | 171,613 | | | | | | | | | |
| Other liabilities | | | 43,498 | | | | | | | | | | | | 28,607 | | | | | | | | | |
| Shareholders’ equity | | | 242,270 | | | | | | | | | | | | 189,289 | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,924,002 | | | | | | | | | | | $ | 2,641,843 | | | | | | | | | |
| Net interest income (FTE) | | | | | | $ | 16,720 | | | | | | | | | | | $ | 16,674 | | | | | |
| Interest rate spread | | | | | | | | | | | 2.17 | % | | | | | | | | | | | 2.42 | % |
| Net interest margin | | | | | | | | | | | 2.45 | % | | | | | | | | | | | 2.71 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| (Dollars in thousands) | | | | | | |
| | | | | | | |
| Three months ended June 30, | | 2009 | | | 2008 | |
| Commercial and other loans | | $ | 51 | | | $ | 45 | |
| Nontaxable debt securities | | | 388 | | | | 366 | |
| Corporate stocks | | | 20 | | | | 56 | |
| Total | | $ | 459 | | | $ | 467 | |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | |
| | | | |
| Six months ended June 30, | | 2009 | | | 2008 | |
| | | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| (Dollars in thousands) | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| Assets | | | | | | | | | | | | | | | | | | |
| Residential real estate loans | | $ | 641,773 | | | $ | 17,262 | | | | 5.42 | % | | $ | 599,919 | | | $ | 16,554 | | | | 5.55 | % |
| Commercial and other loans | | | 906,946 | | | | 24,381 | | | | 5.42 | % | | | 728,270 | | | | 24,356 | | | | 6.73 | % |
| Consumer loans | | | 320,946 | | | | 6,745 | | | | 4.24 | % | | | 295,301 | | | | 8,556 | | | | 5.83 | % |
| Total loans | | | 1,869,665 | | | | 48,388 | | | | 5.22 | % | | | 1,623,490 | | | | 49,466 | | | | 6.13 | % |
| Cash, federal funds sold | | | | | | | | | | | | | | | | | | | | | | | | |
| and other short-term investments | | | 19,803 | | | | 26 | | | | 0.26 | % | | | 16,600 | | | | 190 | | | | 2.30 | % |
| Taxable debt securities | | | 747,087 | | | | 16,037 | | | | 4.33 | % | | | 678,081 | | | | 16,718 | | | | 4.96 | % |
| Nontaxable debt securities | | | 80,674 | | | | 2,332 | | | | 5.83 | % | | | 81,337 | | | | 2,295 | | | | 5.67 | % |
| Corporate stocks and FHLBB stock | | | 48,061 | | | | 174 | | | | 0.73 | % | | | 48,014 | | | | 1,232 | | | | 5.16 | % |
| Total securities | | | 895,625 | | | | 18,569 | | | | 4.18 | % | | | 824,032 | | | | 20,435 | | | | 4.99 | % |
| Total interest-earning assets | | | 2,765,290 | | | | 66,957 | | | | 4.88 | % | | | 2,447,522 | | | | 69,901 | | | | 5.74 | % |
| Non interest-earning assets | | | 178,593 | | | | | | | | | | | | 167,258 | | | | | | | | | |
| Total assets | | $ | 2,943,883 | | | | | | | | | | | $ | 2,614,780 | | | | | | | | | |
| Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 175,530 | | | $ | 154 | | | | 0.18 | % | | $ | 165,132 | | | $ | 159 | | | | 0.19 | % |
| Money market accounts | | | 370,846 | | | | 2,314 | | | | 1.26 | % | | | 321,476 | | | | 3,951 | | | | 2.47 | % |
| Savings accounts | | | 183,206 | | | | 300 | | | | 0.33 | % | | | 174,815 | | | | 650 | | | | 0.75 | % |
| Time deposits | | | 968,367 | | | | 15,260 | | | | 3.18 | % | | | 797,296 | | | | 16,387 | | | | 4.13 | % |
| FHLBB advances | | | 731,311 | | | | 14,339 | | | | 3.95 | % | | | 713,786 | | | | 15,093 | | | | 4.25 | % |
| Junior subordinated debentures | | | 32,991 | | | | 958 | | | | 5.86 | % | | | 27,496 | | | | 847 | | | | 6.20 | % |
| Other | | | 22,153 | | | | 489 | | | | 4.45 | % | | | 26,631 | | | | 589 | | | | 4.45 | % |
| Total interest-bearing liabilities | | | 2,484,404 | | | | 33,814 | | | | 2.74 | % | | | 2,226,632 | | | | 37,676 | | | | 3.40 | % |
| Demand deposits | | | 175,904 | | | | | | | | | | | | 168,773 | | | | | | | | | |
| Other liabilities | | | 43,666 | | | | | | | | | | | | 29,571 | | | | | | | | | |
| Shareholders’ equity | | | 239,909 | | | | | | | | | | | | 189,804 | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,943,883 | | | | | | | | | | | $ | 2,614,780 | | | | | | | | | |
| Net interest income (FTE) | | | | | | $ | 33,143 | | | | | | | | | | | $ | 32,225 | | | | | |
| Interest rate spread | | | | | | | | | | | 2.14 | % | | | | | | | | | | | 2.34 | % |
| Net interest margin | | | | | | | | | | | 2.42 | % | | | | | | | | | | | 2.65 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| (Dollars in thousands) | | | | | | |
| | | | | | | |
| Six months ended June 30, | | 2009 | | | 2008 | |
| Commercial and other loans | | $ | 102 | | | $ | 90 | |
| Nontaxable debt securities | | | 774 | | | | 729 | |
| Corporate stocks | | | 47 | | | | 123 | |
| Total | | $ | 923 | | | $ | 942 | |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited) | |
| | |
| | | At of for the Quarters Ended | |
| | | June 30, | | | Mar. 31, | | | Dec. 31, | | | Sept. 30, | | | June 30, | |
| (Dollars in thousands, except per share amounts) | | 2009 | | | 2009 | | | 2008 | | | 2008 | | | 2008 | |
| Calculation of tangible book value per share | | | | | | | | | | | | | | | |
| Total shareholders’ equity at end of period | | $ | 242,293 | | | $ | 238,727 | | | $ | 235,111 | | | $ | 184,762 | | | $ | 186,422 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | | 58,114 | | | | 58,114 | | | | 58,114 | | | | 56,117 | | | | 50,479 | |
| Identifiable intangible assets, net | | | 9,536 | | | | 9,844 | | | | 10,152 | | | | 10,461 | | | | 10,781 | |
| Total tangible shareholders’ equity at end of period | | $ | 174,643 | | | $ | 170,769 | | | $ | 166,845 | | | $ | 118,184 | | | $ | 125,162 | |
| | | | | | | | | | | | | | | | | | | | | |
| Shares outstanding at end of period | | | 16,001.9 | | | | 15,949.9 | | | | 15,934.7 | | | | 13,423.2 | | | | 13,398.2 | |
| | | | | | | | | | | | | | | | | | | | | |
| Book value per share – GAAP | | $ | 15.14 | | | $ | 14.97 | | | $ | 14.75 | | | $ | 13.76 | | | $ | 13.91 | |
| Tangible book value per share – Non-GAAP | | $ | 10.91 | | | $ | 10.71 | | | $ | 10.47 | | | $ | 8.80 | | | $ | 9.34 | |
| | | | | | | | | | | | | | | | | | | | | |
| Calculation of tangible equity to tangible assets | | | | | | | | | | | | | | | | | | | | |
| Total tangible shareholders’ equity at end of period | | $ | 174,643 | | | $ | 170,769 | | | $ | 166,845 | | | $ | 118,184 | | | $ | 125,162 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total assets at end of period | | $ | 2,919,808 | | | $ | 2,947,110 | | | $ | 2,965,466 | | | $ | 2,767,882 | | | $ | 2,732,989 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | | 58,114 | | | | 58,114 | | | | 58,114 | | | | 56,117 | | | | 50,479 | |
| Identifiable intangible assets, net | | | 9,536 | | | | 9,844 | | | | 10,152 | | | | 10,461 | | | | 10,781 | |
| Total tangible assets at end of period | | $ | 2,852,158 | | | $ | 2,879,152 | | | $ | 2,897,200 | | | $ | 2,701,304 | | | $ | 2,671,729 | |
| | | | | | | | | | | | | | | | | | | | | |
| Equity to assets - GAAP | | | 8.30 | % | | | 8.10 | % | | | 7.93 | % | | | 6.68 | % | | | 6.82 | % |
| Tangible equity to tangible assets – Non-GAAP | | | 6.12 | % | | | 5.93 | % | | | 5.76 | % | | | 4.38 | % | | | 4.68 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Calculation of return on average tangible assets | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,765 | | | $ | 2,670 | | | $ | 4,221 | | | $ | 6,040 | | | $ | 6,095 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total average assets | | $ | 2,924,002 | | | $ | 2,963,985 | | | $ | 2,867,086 | | | $ | 2,754,769 | | | $ | 2,641,843 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Average goodwill | | | 58,114 | | | | 58,114 | | | | 56,139 | | | | 50,540 | | | | 50,479 | |
| Average identifiable intangible assets, net | | | 9,686 | | | | 9,995 | | | | 10,302 | | | | 10,615 | | | | 10,940 | |
| Total average tangible assets | | $ | 2,856,202 | | | $ | 2,895,876 | | | $ | 2,800,645 | | | $ | 2,693,614 | | | $ | 2,580,424 | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average assets - GAAP | | | 0.52 | % | | | 0.36 | % | | | 0.59 | % | | | 0.88 | % | | | 0.92 | % |
| Return on average tangible assets – Non-GAAP | | | 0.53 | % | | | 0.37 | % | | | 0.60 | % | | | 0.90 | % | | | 0.94 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Calculation of return on average tangible equity | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 3,765 | | | $ | 2,670 | | | $ | 4,221 | | | $ | 6,040 | | | $ | 6,095 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total average shareholders’ equity | | $ | 242,270 | | | $ | 237,522 | | | $ | 231,101 | | | $ | 186,664 | | | $ | 189,289 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Average goodwill | | | 58,114 | | | | 58,114 | | | | 56,139 | | | | 50,540 | | | | 50,479 | |
| Average identifiable intangible assets, net | | | 9,686 | | | | 9,995 | | | | 10,302 | | | | 10,615 | | | | 10,940 | |
| Total average tangible shareholders’ equity | | $ | 174,470 | | | $ | 169,413 | | | $ | 164,660 | | | $ | 125,509 | | | $ | 127,870 | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average shareholders’ equity - GAAP | | | 6.22 | % | | | 4.50 | % | | | 7.31 | % | | | 12.94 | % | | | 12.88 | % |
Return on average tangible shareholders’ equity – Non-GAAP | | | 8.63 | % | | | 6.30 | % | | | 10.25 | % | | | 19.25 | % | | | 19.07 | % |
| Washington Trust Bancorp, Inc. and Subsidiaries | |
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited) | |
| | |
| | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| (Dollars in thousands) | | 2009 | | | 2008 | |
| Calculation of return on average tangible assets | | | | | | |
| Net income | | $ | 6,435 | | | $ | 11,911 | |
| | | | | | | | | |
| Total average assets | | $ | 2,943,883 | | | $ | 2,614,780 | |
| Less: | | | | | | | | |
| Average goodwill | | | 58,114 | | | | 50,479 | |
| Average identifiable intangible assets, net | | | 9,840 | | | | 11,103 | |
| Total average tangible assets | | $ | 2,875,929 | | | $ | 2,553,198 | |
| | | | | | | | | |
| Return on average assets - GAAP | | | 0.44 | % | | | 0.91 | % |
| Return on average tangible assets – Non-GAAP | | | 0.45 | % | | | 0.93 | % |
| | | | | | | | | |
| | | | | | | | | |
| Calculation of return on average tangible equity | | | | | | | | |
| Net income | | $ | 6,435 | | | $ | 11,911 | |
| | | | | | | | | |
| Total average shareholders’ equity | | $ | 239,909 | | | $ | 189,804 | |
| Less: | | | | | | | | |
| Average goodwill | | | 58,114 | | | | 50,479 | |
| Average identifiable intangible assets, net | | | 9,840 | | | | 11,103 | |
| Total average tangible shareholders’ equity | | $ | 171,955 | | | $ | 128,222 | |
| | | | | | | | | |
| Return on average shareholders’ equity - GAAP | | | 5.36 | % | | | 12.55 | % |
| Return on average tangible shareholders’ equity – Non-GAAP | | | 7.48 | % | | | 18.58 | % |
