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: January 26, 2010
FOR IMMEDIATE RELEASE
Washington Trust Announces Fourth Quarter 2009 Earnings
Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2009 net income of $4.7 million, or 30 cents per diluted share, compared to fourth quarter 2008 net income of $4.2 million, or 27 cents per diluted share. For the year ended December 31, 2009, net income amounted to $16.1 million, or $1.00 per diluted share, compared to $22.2 million, or $1.57 per diluted share, for 2008.
Earnings in the fourth quarter of 2009 were influenced by the following:
| · | Credit-related impairment losses of $679 thousand ($438 thousand after tax; 3 cents per diluted share) were charged to earnings in the fourth quarter of 2009 for an investment security deemed to be other-than-temporarily impaired. Impairment losses of $2.9 million ($1.9 million after tax; 12 cents per diluted share) were recognized in earnings in the fourth quarter of 2008. |
| · | The loan loss provision charged to earnings amounted to $2.0 million for the fourth quarter of 2009, compared to $1.9 million for the fourth quarter of 2008. |
| · | Federal Deposit Insurance Corp. (“FDIC”) deposit insurance premiums for the fourth quarter of 2009 were up by $523 thousand from the fourth quarter a year earlier, reflecting higher assessment rates. |
Selected Fourth Quarter 2009 developments:
| · | Wealth management revenues for the fourth quarter of 2009 increased by $321 thousand, or 5 percent, from the third quarter of 2009. These revenues were $196 thousand, or 3 percent, higher than fourth quarter 2008; the first year over year quarterly increase in 2009. Assets under administration increased by $167 million and $623 million, respectively, in the quarter and year ended December 31, 2009. |
| · | Net gains on loan sales and commissions on loans originated for others for the fourth quarter of 2009 were up by $574 thousand from the third quarter of 2009 and by $932 thousand from the fourth quarter a year ago, due to strong residential mortgage refinancing and sales activity. |
-M O R E-
Page Two, January 26, 2010
| · | Total loans increased by $13 million, or 1 percent, in the fourth quarter of 2009, with commercial loan growth of $8 million. Commercial loans have increased $104 million, or 12 percent, from the balance at December 31, 2008. |
| · | Total in-market deposits grew by $38 million, or 2 percent, in the fourth quarter of 2009, due to increases in money market and NOW account balances. In-market deposit growth was strong in 2009 with a total increase of $226 million, or 14 percent, during the year. |
| · | Nonperforming assets amounted to $30.5 million, or 1.06 % of total assets, at December 31, 2009 up from $27.9 million, or 0.97% of total assets, at September 30, 2009. Total loans 30 days or more past due stood at $30.7 million at December 31, 2009, up by $739 thousand in the fourth quarter. This was the smallest quarterly delinquency increase in 2009. |
“In 2009, Washington Trust achieved double-digit increases in commercial lending and wealth management assets under management, as well as excellent growth in both deposits and mortgage banking activity,” stated John C. Warren, Chairman and Chief Executive Officer. “Despite this solid performance, earnings continue to be affected by a weak economy.”
Net Interest Income
Net interest income for the fourth quarter of 2009 increased $220 thousand, or 1 percent, from the third quarter of 2009 and decreased $640 thousand, or 4 percent, from the fourth quarter a year ago. On a year-to-date basis, net interest income increased by $379 thousand, or 1 percent, from 2008. No dividend was received from the Federal Home Loan Bank of Boston (“FHLBB”) in 2009, compared to $264 thousand and $1.3 million, respectively, for the quarter and year ended December 31, 2008.
The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the fourth quarter of 2009 was 2.56%, up 5 basis points from the third quarter of 2009 primarily due to a 16 basis point decline in the effective rate paid on interest-bearing deposits. The quarterly net interest margin was 9 basis points lower than the fourth quarter of 2008. On a year-to-date basis, the net interest margin was 2.48%, down 16 basis points from 2008. The decreases in net interest margin from 2008 reflect the elimination of FHLBB dividend income and margin compression, in general, on core deposit rates, as well as the impact of higher levels of nonaccrual loans in 2009 compared to 2008.
- M O R E -
Washington Trust
Page Three, January 26, 2010
Noninterest Income
Wealth management revenues for the fourth quarter of 2009 increased by $321 thousand, or 5 percent, from the third quarter of 2009 and increased by $196 thousand, or 3 percent, from the fourth quarter a year ago. On a year-to-date basis, wealth management revenues were down $4.5 million, or 16 percent, from 2008. Assets under administration totaled $3.770 billion at December 31, 2009, up $167 million, or 5 percent, from September 30, 2009. This fourth quarter 2009 increase in assets under administration reflected net market value appreciation and income of $89 million and net client cash flows of $78 million. Assets under administration were 20 percent higher than the balance at December 31, 2008.
Residential mortgage refinancing and sales activity continued at a strong pace in the fourth quarter of 2009. Net gains on loan sales and commissions on loans originated for others for the fourth quarter of 2009 were up by $574 thousand from the third quarter of 2009 and up by $932 thousand from the fourth quarter a year ago. On a year-to-date basis, this revenue source increased by $3.0 million from 2008.
There were no net realized gains on sales of securities in the fourth quarter of 2009, compared to $315 thousand recognized in the fourth quarter a year earlier. On a year-to-date basis, net realized gains on sales of securities totaled $314 thousand in 2009 and $2.2 million in 2008.
Net unrealized gains on interest rate swap contracts amounted to $204 thousand and $697 thousand, respectively, for the quarter and year ended December 31, 2009. For the same periods in 2008, the Corporation recognized net unrealized losses of $663 thousand and $542 thousand, respectively.
Other-than-temporary impairment losses on investment securities amounted to $679 thousand in the fourth quarter of 2009, $467 thousand in the third quarter of 2009 and $2.9 million in the fourth quarter of 2008. On a year-to-date basis, impairment losses on investment securities totaled $3.1 million in 2009 and $5.9 million in 2008.
Noninterest Expenses
Noninterest expenses for the fourth quarter of 2009 remained essentially flat compared to the third quarter of 2009 and increased by $1.2 million, or 7 percent, from the fourth quarter of 2008. This year over year increase in fourth quarter noninterest expenses was largely due to higher FDIC deposit insurance costs and increases in staffing. On a year-to-date basis, total noninterest expenses increased by $5.4 million, or 8 percent, from 2008, which included a $3.4 million increase in FDIC deposit insurance costs.
- M O R E -
Page Four, January 26, 2010
Income tax expense amounted to $1.9 million and $6.3 million, respectively, for the quarter and year ended December 31, 2009, as compared to $167 thousand and $7.3 million, respectively, for the same periods in 2008. The effective tax rate for the fourth quarter and year ended December 31, 2009 was 28.7% and 28.3%, respectively, as compared to 3.8% and 24.8% for the same periods a year earlier. Non-core income tax benefits of $1.4 million (10 cents per diluted share) were recognized in the third and fourth quarters of 2008 resulting from changes in state income tax statutes and the resolution of certain tax positions. Excluding these non-core factors, the Corporation’s effective tax rate for 2008 was 29.6%.
Asset Quality
Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure) amounted to $30.5 million, or 1.06% of total assets, at December 31, 2009, compared to $27.9 million, or 0.97% of total assets, at September 30, 2009. Nonaccrual loans totaled $27.5 million at December 31, 2009, up by $2.3 million in the fourth quarter of 2009, reflecting net increases of $1.6 million in nonaccrual commercial loans and $725 thousand in nonaccrual residential mortgages. Property acquired through foreclosure or repossession amounted to $2.0 million at December 31, 2009, compared to $1.2 million at September 30, 2009.
At December 31, 2009, total loans 30 days or more past due amounted to $30.7 million, or 1.60% of total loans, up by $739 thousand from September 30, 2009 and by $13.1 million from December 31, 2008. The fourth quarter increase in delinquencies compares to average quarterly increases of $4.1 million in each of the previous three quarters. Commercial loan delinquencies amounted to $21.7 million, or 2.21% of total commercial loans, at December 31, 2009, down by $422 thousand in the fourth quarter of 2009. Total residential mortgage and consumer loan delinquencies amounted to $9.0 million, or 0.96% of these loans, at December 31, 2009, up by $1.2 million in the fourth quarter of 2009.
The loan loss provision charged to earnings amounted to $2.0 million for the fourth quarter of 2009, compared to $1.8 million for the third quarter of 2009 and $1.9 million for the fourth quarter of 2008. For the years ended December 31, 2009 and 2008, the loan loss provision totaled $8.5 million and $4.8 million, respectively. Net charge-offs amounted to $1.0 million in the fourth quarter of 2009, compared to $1.4 million in the third quarter of 2009. Net charge-offs were $756 thousand in the fourth quarter of 2008. On a year-to-date basis, net charge-offs totaled $4.8 million in 2009 and $1.4 million in 2008.
- M O R E -
Washington Trust
Page Five, January 26, 2010
We believe that the declining credit quality trend experienced in 2009 is primarily related to weakened national and regional economic conditions. These conditions, including high unemployment levels, 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 $27.4 million, or 1.43% of total loans, at December 31, 2009, compared to $23.7 million, or 1.29% of total loans, at December 31, 2008.
Loans
Total loans grew by $13 million in the fourth quarter of 2009, with the largest increase in commercial loans. The commercial real estate portfolio grew by $17 million in the fourth quarter, offset in part by a $9 million decline in other commercial loans. The residential mortgage portfolio balances were essentially flat in the fourth quarter 2009, while the consumer loan portfolio increased by $4 million. Total loans grew by $81 million, or 4 percent, from the balance at December 31, 2008, with commercial real estate loan growth of $112 million, or 24 percent.
Investment Securities
The investment securities portfolio amounted to $691 million at December 31, 2009, down by $41 million in the fourth quarter of 2009 and down by $175 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 December 31, 2009, the net unrealized gain position on the investment securities portfolio was $13.8 million, including gross unrealized losses of $14.7 million. Approximately 94% of the gross unrealized losses on the investment securities portfolio were concentrated in variable rate trust preferred securities issued by financial services companies. During the fourth quarter of 2009, net impairment losses of $679 thousand were charged to earnings on a pooled trust preferred debt security deemed to be other-than-temporarily impaired.
Deposits and Borrowings
Total deposits amounted to $1.923 billion at December 31, 2009, up by $29 million, or 2 percent, from September 30, 2009 and by $132 million, or 7 percent, from December 31, 2008. Excluding out-of-market brokered certificates of deposit, in-market deposits grew by $38 million, or 2 percent, during the fourth quarter of 2009. On a year-to-date basis, in-market deposits increased by $226 million, or 14 percent, in 2009 which included $42 million in wealth management client money market deposits previously held in outside money market funds.
– M O R E –
Washington Trust
Page Six, January 26, 2010
FHLBB advances totaled $607 million at December 31, 2009, down by $29 million from September 30, 2009 and down by $222 million from December 31, 2008.
Dividends Declared
The Board of Directors declared a quarterly dividend of 21 cents per share for the quarter ended December 31, 2009. The dividend was paid on January 14, 2010 to shareholders of record on January 5, 2010.
Conference Call
Washington Trust will host a conference call on Wednesday, January 27, 2010 at 8:30 a.m. (Eastern Time) to discuss its fourth 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 #: 436828. The replay will be available until 9:00 a.m. on February 11, 2010.
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, January 26, 2010
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) |
| | December 31, | December 31, |
| (Dollars in thousands) | 2009 | 2008 |
| Assets: | | |
| Cash and noninterest-bearing balances due from banks | $38,167 | $11,644 |
| Interest-bearing balances due from banks | 13,686 | 41,780 |
| Federal funds sold and securities purchased under resale agreements | – | 2,942 |
| Other short-term investments | 5,407 | 1,824 |
| Mortgage loans held for sale | 9,909 | 2,543 |
| Securities available for sale, at fair value; | | |
| amortized cost $677,676 in 2009 and $869,433 in 2008 | 691,484 | 866,219 |
| Federal Home Loan Bank stock, at cost | 42,008 | 42,008 |
| Loans: | | |
| Commercial and other | 984,550 | 880,313 |
| Residential real estate | 605,575 | 642,052 |
| Consumer | 329,543 | 316,789 |
| Total loans | 1,919,668 | 1,839,154 |
| Less allowance for loan losses | 27,400 | 23,725 |
| Net loans | 1,892,268 | 1,815,429 |
| Premises and equipment, net | 27,524 | 25,102 |
| Accrued interest receivable | 9,137 | 11,036 |
| Investment in bank-owned life insurance | 44,957 | 43,163 |
| Goodwill | 58,114 | 58,114 |
| Identifiable intangible assets, net | 8,943 | 10,152 |
| Property acquired through foreclosure or repossession, net | 1,974 | 392 |
| Other assets | 40,895 | 33,118 |
| Total assets | $2,884,473 | $2,965,466 |
| | | |
| Liabilities: | | |
| Deposits: | | |
| Demand deposits | $194,046 | $172,771 |
| NOW accounts | 202,367 | 171,306 |
| Money market accounts | 403,333 | 305,879 |
| Savings accounts | 191,580 | 173,485 |
| Time deposits | 931,684 | 967,427 |
| Total deposits | 1,923,010 | 1,790,868 |
| Dividends payable | 3,369 | 3,351 |
| Federal Home Loan Bank advances | 607,328 | 829,626 |
| Junior subordinated debentures | 32,991 | 32,991 |
| Other borrowings | 21,501 | 26,743 |
| Accrued expenses and other liabilities | 41,328 | 46,776 |
| Total liabilities | 2,629,527 | 2,730,355 |
| | | |
| Shareholders’ Equity: | | |
| Common stock of $.0625 par value; authorized 30,000,000 shares; | | |
| issued 16,061,748 shares in 2009 and 16,018,868 shares in 2008 | 1,004 | 1,001 |
| Paid-in capital | 82,592 | 82,095 |
| Retained earnings | 168,514 | 164,679 |
| Accumulated other comprehensive income (loss) | 3,337 | (10,458) |
| Treasury stock, at cost; 19,185 shares in 2009 and 84,191 in 2008 | (501) | (2,206) |
| Total shareholders’ equity | 254,946 | 235,111 |
| Total liabilities and shareholders’ equity | $2,884,473 | $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 | Twelve Months |
| Periods ended December 31, | 2009 | 2008 | 2009 | 2008 |
| Interest income: | | | | |
| Interest and fees on loans | $24,207 | $26,043 | $96,796 | $100,939 |
| Interest on securities: | | | | |
| Taxable | 6,358 | 9,160 | 29,423 | 34,382 |
| Nontaxable | 777 | 781 | 3,116 | 3,125 |
| Dividends on corporate stock and Federal Home Loan Bank stock | 55 | 366 | 245 | 1,882 |
| Other interest income | 11 | 16 | 50 | 334 |
| Total interest income | 31,408 | 36,366 | 129,630 | 140,662 |
| Interest expense: | | | | |
| Deposits | 7,033 | 10,164 | 32,638 | 41,195 |
| Federal Home Loan Bank advances | 6,739 | 7,790 | 28,172 | 30,894 |
| Junior subordinated debentures | 444 | 508 | 1,947 | 1,879 |
| Other interest expense | 246 | 318 | 981 | 1,181 |
| Total interest expense | 14,462 | 18,780 | 63,738 | 75,149 |
| Net interest income | 16,946 | 17,586 | 65,892 | 65,513 |
| Provision for loan losses | 2,000 | 1,850 | 8,500 | 4,800 |
| Net interest income after provision for loan losses | 14,946 | 15,736 | 57,392 | 60,713 |
| Noninterest income: | | | | |
| Wealth management services: | | | | |
| Trust and investment advisory fees | 4,887 | 4,415 | 18,128 | 20,316 |
| Mutual fund fees | 1,143 | 1,036 | 4,140 | 5,205 |
| Financial planning, commissions and other service fees | 340 | 723 | 1,518 | 2,752 |
| Wealth management services | 6,370 | 6,174 | 23,786 | 28,273 |
| Service charges on deposit accounts | 1,289 | 1,198 | 4,860 | 4,781 |
| Merchant processing fees | 1,790 | 1,493 | 7,844 | 6,900 |
| Income from bank-owned life insurance | 452 | 448 | 1,794 | 1,800 |
| Net gains on loan sales and commissions on loans originated for others | 1,165 | 233 | 4,352 | 1,396 |
| Net realized gains on securities | – | 315 | 314 | 2,224 |
| Net unrealized gains (losses) on interest rate swap contracts | 204 | (663) | 697 | (542) |
| Other income | 379 | 477 | 1,708 | 1,625 |
| Noninterest income, excluding other-than-temporary impairment losses | 11,649 | 9,675 | 45,355 | 46,457 |
| Total other-than-temporary impairment losses on securities | (113) | (2,948) | (6,650) | (5,937) |
| Portion of loss recognized in other comprehensive income (before taxes) | (566) | – | 3,513 | – |
| Net impairment losses recognized in earnings | (679) | (2,948) | (3,137) | (5,937) |
| Total noninterest income | 10,970 | 6,727 | 42,218 | 40,520 |
| Noninterest expense: | | | | |
| Salaries and employee benefits | 10,667 | 9,703 | 41,917 | 41,037 |
| Net occupancy | 1,210 | 1,211 | 4,790 | 4,536 |
| Equipment | 990 | 961 | 3,917 | 3,838 |
| Merchant processing costs | 1,516 | 1,246 | 6,652 | 5,769 |
| Outsourced services | 697 | 781 | 2,734 | 2,859 |
| Legal, audit and professional fees | 558 | 726 | 2,443 | 2,325 |
| FDIC deposit insurance costs | 795 | 272 | 4,397 | 1,044 |
| Advertising and promotion | 473 | 500 | 1,687 | 1,729 |
| Amortization of intangibles | 290 | 309 | 1,209 | 1,281 |
| Other expenses | 2,061 | 2,366 | 7,422 | 7,324 |
| Total noninterest expense | 19,257 | 18,075 | 77,168 | 71,742 |
| Income before income taxes | 6,659 | 4,388 | 22,442 | 29,491 |
| Income tax expense | 1,911 | 167 | 6,346 | 7,319 |
| Net income | $4,748 | $4,221 | $16,096 | $22,172 |
| | | | | |
| Weighted average shares outstanding – basic | 16,035.4 | 15,765.4 | 15,994.9 | 13,981.9 |
| Weighted average shares outstanding – diluted | 16,082.0 | 15,871.6 | 16,040.9 | 14,146.3 |
| Per share information: | | | | |
| Basic earnings per share | $0.30 | $0.27 | $1.01 | $1.59 |
| Diluted earnings per share | $0.30 | $0.27 | $1.00 | $1.57 |
| Cash dividends declared per share | $0.21 | $0.21 | $0.84 | $0.83 |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| |
| | At or for the Quarters Ended |
| | Dec. 31, | Sept. 30, | June 30, | Mar 31, | Dec. 31, |
| (Dollars in thousands, except per share amounts) | 2009 | 2009 | 2009 | 2009 | 2008 |
| Financial Data | | | | | |
| Total assets | $2,884,473 | $2,888,065 | $2,919,808 | $2,947,110 | $2,965,466 |
| Total loans | 1,919,668 | 1,906,565 | 1,891,254 | 1,865,954 | 1,839,154 |
| Total securities | 691,484 | 732,646 | 776,435 | 833,959 | 866,219 |
| Total deposits | 1,923,010 | 1,894,170 | 1,883,720 | 1,884,324 | 1,790,868 |
| Total shareholders’ equity | 254,946 | 252,146 | 242,293 | 238,727 | 235,111 |
| Net interest income | 16,946 | 16,726 | 16,261 | 15,959 | 17,586 |
| Provision for loan losses | 2,000 | 1,800 | 3,000 | 1,700 | 1,850 |
| Noninterest income, excluding other-than-temporary | | | | | |
| impairment losses | 11,649 | 11,504 | 12,303 | 9,899 | 9,675 |
| Net impairment losses recognized in earnings | (679) | (467) | - | (1,991) | (2,948) |
| Noninterest expenses | 19,257 | 19,192 | 20,329 | 18,390 | 18,075 |
| Income tax expense | 1,911 | 1,858 | 1,470 | 1,107 | 167 |
| Net income | 4,748 | 4,913 | 3,765 | 2,670 | 4,221 |
| | | | | | |
| Share Data | | | | | |
| Basic earnings per share | $0.30 | $0.31 | $0.24 | $0.17 | $0.27 |
| Diluted earnings per share | $0.30 | $0.31 | $0.23 | $0.17 | $0.27 |
| Dividends declared per share | $0.21 | $0.21 | $0.21 | $0.21 | $0.21 |
| Book value per share | $15.89 | $15.73 | $15.14 | $14.97 | $14.75 |
| Tangible book value per share – Non-GAAP* | $11.71 | $11.53 | $10.91 | $10.71 | $10.47 |
| Market value per share | $15.58 | $17.52 | $17.83 | $16.25 | $19.75 |
| | | | | | |
| Shares outstanding at end of period | 16,042.6 | 16,026.6 | 16,001.9 | 15,949.9 | 15,934.7 |
| Weighted average shares outstanding – basic | 16,035.4 | 16,016.8 | 15,983.6 | 15,942.7 | 15,765.4 |
| Weighted average shares outstanding – diluted | 16,082.0 | 16,074.5 | 16,037.4 | 15,997.8 | 15,871.6 |
| | | | | | |
| Key Ratios | | | | | |
| Return on average assets | 0.66% | 0.68% | 0.52% | 0.36% | 0.59% |
| Return on average tangible assets – Non-GAAP* | 0.67% | 0.69% | 0.53% | 0.37% | 0.60% |
| Return on average equity | 7.47% | 7.94% | 6.22% | 4.50% | 7.31% |
| Return on average tangible equity – Non-GAAP* | 10.16% | 10.91% | 8.63% | 6.30% | 10.25% |
| | | | | | |
| Capital Ratios | | | | | |
| Tier 1 risk-based capital | 11.14% (i) | 11.06% | 10.98% | 11.00% | 11.29% |
| Total risk-based capital | 12.40% (i) | 12.31% | 12.23% | 12.25% | 12.54% |
| Tier 1 leverage ratio | 7.82% (i) | 7.68% | 7.53% | 7.35% | 7.53% |
| Equity to assets | 8.84% | 8.73% | 8.30% | 8.10% | 7.93% |
| Tangible equity to tangible assets – Non-GAAP* | 6.67% | 6.55% | 6.12% | 5.93% | 5.76% |
| (i) – estimated | | | | | |
| | | | | | |
| Wealth Management Assets Under Administration | | | | | |
| Balance at beginning of period | $3,603,424 | $3,316,308 | $2,957,918 | $3,147,649 | $3,624,502 |
| Net investment (depreciation) appreciation & income | 88,690 | 295,257 | 313,999 | (150,855) | (466,461) |
| Net customer cash flows | 78,079 | (8,141) | 44,391 | (38,876) | (10,392) |
| Balance at end of period | $3,770,193 | $3,603,424 | $3,316,308 | $2,957,918 | $3,147,649 |
* - 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 Years Ended | |
| | Dec. 31, | Dec. 31, |
| (Dollars in thousands, except per share amounts) | 2009 | 2008 |
| Financial Data | | |
| Net interest income | $65,892 | $65,513 |
| Provision for loan losses | 8,500 | 4,800 |
| Noninterest income, excluding other-than-temporary impairment losses | 45,355 | 46,457 |
| Net impairment losses recognized in earnings | (3,137) | (5,937) |
| Noninterest expenses | 77,168 | 71,742 |
| Income tax expense | 6,346 | 7,319 |
| Net income | 16,096 | 22,172 |
| | | |
| Share Data | | |
| Basic earnings per share | $1.01 | $1.59 |
| Diluted earnings per share | $1.00 | $1.57 |
| Dividends declared per share | $0.84 | $0.83 |
| | | |
| Weighted average shares outstanding – basic | 15,994.9 | 13,981.9 |
| Weighted average shares outstanding – diluted | 16,040.9 | 14,146.3 |
| | | |
| Key Ratios | | |
| Return on average assets | 0.55% | 0.82% |
| Return on average tangible assets – Non-GAAP* | 0.56% | 0.84% |
| Return on average equity | 6.56% | 11.12% |
| Return on average tangible equity – Non-GAAP* | 9.05% | 16.22% |
| | | |
| Asset Quality Data | | |
| Allowance for Loan Losses | | |
| Balance at beginning of period | $23,725 | $20,277 |
| Provision charged to earnings | 8,500 | 4,800 |
| Charge-offs | (5,162) | (1,593) |
| Recoveries | 337 | 241 |
| Balance at end of period | $27,400 | $23,725 |
| | | |
| Net Loan Charge-Offs | | |
| Commercial: | | |
| Mortgages | $1,578 | $117 |
| Construction and development | - | - |
| Other | 2,656 | 996 |
| Residential: | | |
| Mortgages | 389 | 104 |
| Homeowner construction | - | - |
| Consumer | 202 | 135 |
| Total | $4,825 | $1,352 |
| | | |
| Net charge-offs to average loans (annualized) | 0.25% | 0.08% |
| | | |
| Wealth Management Assets Under Administration | | |
| Balance at beginning of period | $3,147,649 | $4,014,352 |
| Net investment (depreciation) appreciation & income | 547,091 | (980,909) |
| Net customer cash flows | 75,453 | 114,206 |
| Balance at end of period | $3,770,193 | $3,147,649 |
* - 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 |
| | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, |
| (Dollars in thousands, except per share amounts) | 2009 | 2009 | 2009 | 2009 | 2008 |
| Average Yields (taxable equivalent basis) | | | | | |
| Assets: | | | | | |
| Residential real estate loans | 5.17% | 5.22% | 5.38% | 5.47% | 5.50% |
| Commercial and other loans | 5.19% | 5.26% | 5.37% | 5.47% | 6.19% |
| Consumer loans | 4.06% | 4.15% | 4.19% | 4.29% | 5.00% |
| Total loans | 4.99% | 5.06% | 5.17% | 5.27% | 5.74% |
| Cash, federal funds sold | | | | | |
| and other short-term investments | 0.19% | 0.28% | 0.27% | 0.26% | 0.30% |
| FHLBB stock | 0.00% | 0.00% | 0.00% | 0.00% | 2.50% |
| Taxable debt securities | 4.10% | 4.19% | 4.21% | 4.45% | 4.87% |
| Nontaxable debt securities | 5.74% | 5.73% | 5.80% | 5.86% | 5.64% |
| Corporate stocks | 5.68% | 7.02% | 5.40% | 0.83% | 8.08% |
| Total securities | 4.30% | 4.38% | 4.37% | 4.26% | 4.97% |
| Total interest-earning assets | 4.70% | 4.76% | 4.83% | 4.93% | 5.41% |
| Liabilities: | | | | | |
| NOW accounts | 0.18% | 0.19% | 0.17% | 0.18% | 0.17% |
| Money market accounts | 0.82% | 0.91% | 0.98% | 1.55% | 1.91% |
| Savings accounts | 0.22% | 0.25% | 0.26% | 0.40% | 0.48% |
| Time deposits | 2.52% | 2.74% | 3.06% | 3.30% | 3.51% |
| FHLBB advances | 4.35% | 4.18% | 4.11% | 3.81% | 4.05% |
| Junior subordinated debentures | 5.33% | 6.56% | 5.82% | 5.89% | 6.13% |
| Other | 4.68% | 4.71% | 4.70% | 4.22% | 4.20% |
| Total interest-bearing liabilities | 2.40% | 2.54% | 2.66% | 2.83% | 3.09% |
| | | | | | |
| Interest rate spread (taxable equivalent basis) | 2.30% | 2.22% | 2.17% | 2.10% | 2.32% |
| Net interest margin (taxable equivalent basis) | 2.56% | 2.51% | 2.45% | 2.39% | 2.65% |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | |
| | Period End Balances At |
| (Dollars in thousands) | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 |
| Loans | | | | | |
| Commercial: | Commercial mortgages | $496,996 | $484,478 | $439,182 | $412,817 | $407,904 |
| | Construction and development | 72,293 | 68,069 | 64,504 | 49,215 | 49,599 |
| | Other | 415,261 | 423,775 | 443,552 | 446,251 | 422,810 |
| | Total commercial | 984,550 | 976,322 | 947,238 | 908,283 | 880,313 |
| Residential: | Mortgages | 593,981 | 595,270 | 606,324 | 621,141 | 626,663 |
| | Homeowner construction | 11,594 | 9,303 | 12,535 | 15,996 | 15,389 |
| | Total residential real estate | 605,575 | 604,573 | 618,859 | 637,137 | 642,052 |
| Consumer: | Home equity lines | 209,801 | 200,512 | 195,612 | 183,058 | 170,662 |
| | Home equity loans | 62,430 | 66,439 | 70,806 | 79,881 | 89,297 |
| | Other | 57,312 | 58,719 | 58,739 | 57,595 | 56,830 |
| | Total consumer | 329,543 | 325,670 | 325,157 | 320,534 | 316,789 |
| | Total loans | $1,919,668 | $1,906,565 | $1,891,254 | $1,865,954 | $1,839,154 |
| (Dollars in thousands) | |
| | At December 31, 2009 |
| Commercial Real Estate Loans by Property Location | Balance | % of Total |
| Rhode Island, Connecticut, Massachusetts | $512,748 | 90.1% |
| New York, New Jersey, Pennsylvania | 40,485 | 7.1% |
| New Hampshire, Maine | 14,342 | 2.5% |
| Other | 1,714 | 0.3% |
| Total commercial real estate loans (1) | $569,289 | 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 December 31, 2009 |
| Residential Mortgages by Property Location | Balance | % of Total |
| Rhode Island, Connecticut, Massachusetts | $555,455 | 91.8% |
| New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 18,908 | 3.1% |
| Ohio | 13,700 | 2.3% |
| California, Washington, Oregon | 8,140 | 1.3% |
| Colorado, Texas, New Mexico, Utah | 5,038 | 0.8% |
| Georgia | 2,519 | 0.4% |
| New Hampshire | 1,333 | 0.2% |
| Other | 482 | 0.1% |
| Total residential mortgages | $605,575 | 100.0% |
| | |
| | Period End Balances At |
| (Dollars in thousands) | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | 12/31/2008 |
| Deposits | | | | | |
| Demand deposits | $194,046 | $198,712 | $187,830 | $170,975 | $172,771 |
| NOW accounts | 202,367 | 185,772 | 187,014 | 179,903 | 171,306 |
| Money market accounts | 403,333 | 376,100 | 356,726 | 377,603 | 305,879 |
| Savings accounts | 191,580 | 190,707 | 192,484 | 186,152 | 173,485 |
| Time deposits | 931,684 | 942,879 | 959,666 | 969,691 | 967,427 |
| Total deposits | $1,923,010 | $1,894,170 | $1,883,720 | $1,884,324 | $1,790,868 |
| | | | | | |
| Out-of-market brokered certificates of deposits | | | | | |
| included in time deposits | $93,684 | $102,383 | $151,175 | $162,463 | $187,987 |
| | | | | | |
| In-market deposits, excluding out of market | | | | | |
| brokered certificates of deposit | $1,829,326 | $1,791,787 | $1,732,545 | $1,721,861 | $1,602,881 |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| |
| (Dollars in thousands) | At December 31, 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 | $41,565 | $3,675 | $ − | $45,240 |
| Mortgage-backed securities issued by U.S. government | | | | |
| agencies and U.S. government-sponsored enterprises | 503,115 | 20,808 | (477) | 523,446 |
| States and political subdivisions | 80,183 | 2,093 | (214) | 82,062 |
| Trust preferred securities: | | | | |
| Individual name issuers | 30,563 | − | (9,977) | 20,586 |
| Collateralized debt obligations | 4,966 | − | (3,901) | 1,065 |
| Corporate bonds | 13,272 | 1,434 | − | 14,706 |
| Common stocks | 658 | 111 | − | 769 |
| Perpetual preferred stocks | 3,354 | 396 | (140) | 3,610 |
| Total securities available for sale | $677,676 | $28,517 | $(14,709) | $691,484 |
| (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. |
The following is supplemental information concerning common and perpetual preferred stock investment securities:
| | At December 31, 2009 |
| | Amortized | Unrealized | Fair |
| (Dollars in thousands) | Cost (a) | Gains | Losses | Value |
| Common and perpetual preferred stocks | | | | |
| Common stock | $658 | $111 | $ – | $769 |
| Perpetual preferred stocks: | | | | |
| Financials | 2,354 | 396 | (27) | 2,723 |
| Utilities | 1,000 | – | (113) | 887 |
| Total perpetual preferred stocks | 3,354 | 396 | (140) | 3,610 |
| Total common and perpetual preferred stocks | $4,012 | $507 | $(140) | $4,379 |
| (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) |
The following is supplemental information concerning trust preferred investment securities:
| | At December 31, 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. | A2 | BBB+ | $9,714 | $ – | $(2,823) | $6,891 |
| Bank of America Corporation | Baa3 | BB | 5,726 | – | (1,668) | 4,058 |
| Wells Fargo & Company | Baa1/Baa2 | A- | 5,099 | – | (1,858) | 3,241 |
| SunTrust Banks, Inc. | Baa2 | BB+ | 4,163 | – | (1,556) | 2,607 |
| Northern Trust Corporation | A2 | A- | 1,979 | – | (646) | 1,333 |
| State Street Corporation | A2 | BBB+ | 1,967 | – | (334) | 1,633 |
| Huntington Bancshares Incorporated | Baa3 | B | 1,915 | – | (1,092) | 823 |
| Total individual name issuers | | | 30,563 | – | (9,977) | 20,586 |
| | | | | | | |
| Collateralized debt obligations (CDO): | | | | | | |
| Tropic CDO 1, tranche A4L (d) | Ca | | 3,620 | – | (2,642) | 978 |
Preferred Term Securities [PreTSL] XXV, tranche C1 (e) | Ca | | 1,346 | – | (1,259) | 87 |
| Total collateralized debt obligations | | | 4,966 | – | (3,901) | 1,065 |
| Total trust preferred securities | | | $35,529 | $ – | $(13,878) | $21,651 |
| (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 December 31, 2009, 15 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. During the quarter ended March 31, 2009, an adverse change occurred in the expected cash flows for this instrument indicating that, based on cash flow forecasts with regard to timing of deferrals and potential future recovery of deferred payments, default rates, and other matters, the Corporation will not receive all contractual amounts due under the instrument and will not recover the entire cost basis of the security. The Corporation had concluded that these conditions warranted a conclusion of other-than-temporary impairment for this holding as of March 31, 2009 and recognized credit-related impairment losses of $1.4 million in earnings in the first quarter of 2009. |
| (e) | This investment security is not rated by S&P. As of December 31, 2009, 20 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. During the quarter ended September 30, 2009, an adverse change occurred in the expected cash flows for this instrument indicating that, based on cash flow forecasts with regard to timing of deferrals and potential future recovery of deferred payments, default rates, and other matters, Washington Trust will not receive all contractual amounts due under the instrument and will not recover the entire cost basis of the security. The Corporation had concluded that these conditions warrant a conclusion of other-than-temporary impairment for this holding as of September 30, 2009 and recognized credit-related impairment losses of $467 thousand in earnings in the third quarter of 2009. During the quarter ended December 31, 2009, the Corporation recognized additional credit-related impairment losses on this security of $679 thousand. |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| |
| (Dollars in thousands) | For the Quarters Ended |
| | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, |
| Asset Quality Data | 2009 | 2009 | 2009 | 2009 | 2008 |
| Allowance for Loan Losses | | | | | |
| Balance at beginning of period | $26,431 | $26,051 | $24,498 | $23,725 | $22,631 |
| Provision charged to earnings | 2,000 | 1,800 | 3,000 | 1,700 | 1,850 |
| Charge-offs | (1,215) | (1,438) | (1,483) | (1,026) | (776) |
| Recoveries | 184 | 18 | 36 | 99 | 20 |
| Balance at end of period | $27,400 | $26,431 | $26,051 | $24,498 | $23,725 |
| | | | | | |
| Net Loan Charge-Offs | | | | | |
| Commercial: | | | | | |
| Mortgages | $333 | $(10) | $794 | $461 | $185 |
| Construction and development | – | – | – | – | – |
| Other | 627 | 1,165 | 515 | 349 | 497 |
| Residential: | | | | | |
| Mortgages | 29 | 201 | 127 | 32 | 62 |
| Homeowner construction | – | – | – | – | – |
| Consumer | 42 | 64 | 11 | 85 | 12 |
| Total | $1,031 | $1,420 | $1,447 | $927 | $756 |
| | | | | | |
| | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| |
| (Dollars in thousands) | |
| | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, |
| Asset Quality Data | 2009 | 2009 | 2009 | 2009 | 2008 |
| Past Due Loans | | | | | |
| Loans 30–59 Days Past Due | | | | | |
| Commercial real estate | $1,909 | $4,699 | $2,635 | $2,027 | $3,466 |
| Other commercial loans | 1,831 | 1,496 | 2,255 | 3,537 | 2,024 |
| Residential mortgages | 1,588 | 2,164 | 1,820 | 3,000 | 3,113 |
| Consumer loans | 1,258 | 593 | 1,042 | 419 | 76 |
| Loans 30–59 days past due | $6,586 | $8,952 | $7,752 | $8,983 | $8,679 |
| | | | | | |
| Loans 60–89 Days Past Due | | | | | |
| Commercial real estate | $1,648 | $400 | $3,537 | $194 | $6 |
| Other commercial loans | 292 | 609 | 514 | 461 | 785 |
| Residential mortgages | 1,383 | 569 | 1,324 | 165 | 1,452 |
| Consumer loans | 591 | 39 | 44 | – | 401 |
| Loans 60-89 days past due | $3,914 | $1,617 | $5,419 | $820 | $2,644 |
| | | | | | |
| Loans 90 Days or more Past Due | | | | | |
| Commercial real estate | $11,227 | $7,972 | $2,760 | $4,269 | $1,826 |
| Other commercial loans | 4,829 | 6,982 | 5,861 | 4,453 | 3,408 |
| Residential mortgages | 4,028 | 4,186 | 3,826 | 3,575 | 973 |
| Consumer loans | 164 | 300 | 2 | 7 | 77 |
| Loans 90 days or more past due | $20,248 | $19,440 | $12,449 | $12,304 | $6,284 |
| | | | | | |
| Total Past Due Loans | | | | | |
| Commercial real estate | $14,784 | $13,071 | $8,932 | $6,490 | $5,298 |
| Other commercial loans | 6,952 | 9,087 | 8,630 | 8,451 | 6,217 |
| Residential mortgages | 6,999 | 6,919 | 6,970 | 6,740 | 5,538 |
| Consumer loans | 2,013 | 932 | 1,088 | 426 | 554 |
| Total past due loans | $30,748 | $30,009 | $25,620 | $22,107 | $17,607 |
| | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| |
| (Dollars in thousands) | |
| | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, |
| Asset Quality Data | 2009 | 2009 | 2009 | 2009 | 2008 |
| Nonperforming Assets | | | | | |
| Commercial mortgages | $11,588 | $8,147 | $5,995 | $4,384 | $1,942 |
| Commercial construction and development | – | – | – | – | – |
| Other commercial | 9,075 | 10,903 | 10,948 | 6,433 | 3,845 |
| Residential real estate mortgages | 6,038 | 5,313 | 5,168 | 4,057 | 1,754 |
| Consumer | 769 | 850 | 556 | 564 | 236 |
| Total nonaccrual loans | $27,470 | $25,213 | $22,667 | $15,438 | $7,777 |
| Nonaccrual investment securities | 1,065 | 1,490 | 1,881 | 1,928 | 633 |
| Property acquired through foreclosure or repossession | 1,974 | 1,186 | 236 | 170 | 392 |
| Total nonperforming assets | $30,509 | $27,889 | $24,784 | $17,536 | $8,802 |
| | | | | | |
| Total past due loans to total loans | 1.60% | 1.57% | 1.35% | 1.18% | 0.96% |
| Nonperforming assets to total assets | 1.06% | 0.97% | 0.85% | 0.60% | 0.30% |
| Nonaccrual loans to total loans | 1.43% | 1.32% | 1.20% | 0.83% | 0.42% |
| Allowance for loan losses to nonaccrual loans | 99.75% | 104.83% | 114.93% | 158.69% | 305.07% |
| Allowance for loan losses to total loans | 1.43% | 1.39% | 1.38% | 1.31% | 1.29% |
| | | | | | |
| | | | | | |
| Troubled Debt Restructured Loans | | | | | |
| Accruing troubled debt restructured loans | | | | | |
| Commercial mortgages | $5,566 | $2,107 | $1,576 | $ – | $ – |
| Other commercial | 540 | 375 | 323 | 59 | – |
| Residential real estate mortgages | 2,736 | 3,520 | 2,190 | 262 | 263 |
| Consumer | 858 | 822 | 780 | 479 | 607 |
| Accruing troubled debt restructured loans | 9,700 | 6,824 | 4,869 | 800 | 870 |
| Nonaccrual troubled debt restructured loans | | | | | |
| Other commercial | 228 | 353 | 136 | 86 | – |
| Residential real estate mortgages | 336 | 336 | 367 | – | – |
| Consumer | 45 | 7 | – | 7 | – |
| Nonaccrual troubled debt restructured loans | 609 | 696 | 503 | 93 | – |
| Total troubled debt restructured loans | $10,309 | $7,520 | $5,372 | $893 | $870 |
| | | | | | |
The following tables present average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.
| Washington Trust Bancorp, Inc. and Subsidiaries |
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) |
| | |
| Three months ended December 31, | 2009 | 2008 |
| | Average | | Yield/ | Average | | Yield/ |
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate |
| Assets | | | | | | |
| Residential real estate loans | $616,184 | $8,035 | 5.17% | $634,048 | $8,771 | 5.50% |
| Commercial and other loans | 983,087 | 12,861 | 5.19% | 860,827 | 13,399 | 6.19% |
| Consumer loans | 328,020 | 3,359 | 4.06% | 312,127 | 3,922 | 5.00% |
| Total loans | 1,927,291 | 24,255 | 4.99% | 1,807,002 | 26,092 | 5.74% |
| Cash, federal funds sold | | | | | | |
| and other short-term investments | 22,222 | 11 | 0.19% | 21,542 | 16 | 0.30% |
| FHLBB stock | 42,008 | – | –% | 42,008 | 264 | 2.50% |
| | | | | | | |
| Taxable debt securities | 614,867 | 6,358 | 4.10% | 748,717 | 9,160 | 4.87% |
| Nontaxable debt securities | 80,501 | 1,164 | 5.74% | 80,682 | 1,143 | 5.64% |
| Corporate stocks | 5,352 | 77 | 5.68% | 6,949 | 142 | 8.08% |
| Total securities | 700,720 | 7,599 | 4.30% | 836,348 | 10,445 | 4.97% |
| Total interest-earning assets | 2,692,241 | 31,865 | 4.70% | 2,706,900 | 36,817 | 5.41% |
| Non interest-earning assets | 194,800 | | | 160,186 | | |
| Total assets | $2,887,041 | | | $2,867,086 | | |
| Liabilities and Shareholders’ Equity | | | | | | |
| NOW accounts | $189,185 | $85 | 0.18% | $165,267 | $70 | 0.17% |
| Money market accounts | 392,156 | 806 | 0.82% | 295,393 | 1,416 | 1.91% |
| Savings accounts | 190,770 | 108 | 0.22% | 172,098 | 206 | 0.48% |
| Time deposits | 948,544 | 6,034 | 2.52% | 959,459 | 8,472 | 3.51% |
| FHLBB advances | 614,909 | 6,739 | 4.35% | 764,367 | 7,790 | 4.05% |
| Junior subordinated debentures | 32,991 | 444 | 5.33% | 32,991 | 508 | 6.13% |
| Other | 20,879 | 246 | 4.68% | 30,199 | 318 | 4.20% |
| Total interest-bearing liabilities | 2,389,434 | 14,462 | 2.40% | 2,419,774 | 18,780 | 3.09% |
| Demand deposits | 197,327 | | | 183,163 | | |
| Other liabilities | 46,069 | | | 33,048 | | |
| Shareholders’ equity | 254,211 | | | 231,101 | | |
| Total liabilities and shareholders’ equity | $2,887,041 | | | $2,867,086 | | |
| Net interest income (FTE) | | $17,403 | | | $18,037 | |
| Interest rate spread | | | 2.30% | | | 2.32% |
| Net interest margin | | | 2.56% | | | 2.65% |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| (Dollars in thousands) | | |
| | | |
| Three months ended December 31, | 2009 | 2008 |
| Commercial and other loans | $48 | $49 |
| Nontaxable debt securities | 387 | 362 |
| Corporate stocks | 22 | 40 |
| Total | $457 | $451 |
| Washington Trust Bancorp, Inc. and Subsidiaries |
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) |
| | |
| Years ended December 31, | 2009 | 2008 |
| | Average | | Yield/ | Average | | Yield/ |
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate |
| Assets | | | | | | |
| Residential real estate loans | $629,035 | $33,410 | 5.31% | $613,367 | $33,954 | 5.54% |
| Commercial and other loans | 941,833 | 50,092 | 5.32% | 782,825 | 50,589 | 6.46% |
| Consumer loans | 323,576 | 13,494 | 4.17% | 301,653 | 16,584 | 5.50% |
| Total loans | 1,894,444 | 96,996 | 5.12% | 1,697,845 | 101,127 | 5.96% |
| Cash, federal funds sold | | | | | | |
| and other short-term investments | 20,201 | 50 | 0.25% | 21,515 | 334 | 1.55% |
| FHLBB stock | 42,008 | – | –% | 39,282 | 1,345 | 3.42% |
| | | | | | | |
| Taxable debt securities | 693,050 | 29,423 | 4.25% | 700,546 | 34,382 | 4.91% |
| Nontaxable debt securities | 80,629 | 4,662 | 5.78% | 81,046 | 4,583 | 5.65% |
| Corporate stocks | 5,618 | 339 | 6.05% | 9,426 | 740 | 7.85% |
| Total securities | 779,297 | 34,424 | 4.42% | 791,018 | 39,705 | 5.02% |
| Total interest-earning assets | 2,735,950 | 131,470 | 4.81% | 2,549,660 | 142,511 | 5.59% |
| Non interest-earning assets | 185,345 | | | 163,730 | | |
| Total assets | $2,921,295 | | | $2,713,390 | | |
| Liabilities and Shareholders’ Equity | | | | | | |
| NOW accounts | $181,171 | $327 | 0.18% | $165,479 | $306 | 0.18% |
| Money market accounts | 375,175 | 3,960 | 1.06% | 310,445 | 6,730 | 2.17% |
| Savings accounts | 187,862 | 530 | 0.28% | 173,840 | 1,059 | 0.61% |
| Time deposits | 957,449 | 27,821 | 2.91% | 861,814 | 33,100 | 3.84% |
| FHLBB advances | 687,210 | 28,172 | 4.10% | 737,830 | 30,894 | 4.19% |
| Junior subordinated debentures | 32,991 | 1,947 | 5.90% | 30,259 | 1,879 | 6.21% |
| Other | 21,476 | 981 | 4.57% | 26,678 | 1,181 | 4.43% |
| Total interest-bearing liabilities | 2,443,334 | 63,738 | 2.61% | 2,306,345 | 75,149 | 3.26% |
| Demand deposits | 187,800 | | | 177,032 | | |
| Other liabilities | 44,712 | | | 30,618 | | |
| Shareholders’ equity | 245,449 | | | 199,395 | | |
| Total liabilities and shareholders’ equity | $2,921,295 | | | $2,713,390 | | |
| Net interest income (FTE) | | $67,732 | | | $67,362 | |
| Interest rate spread | | | 2.20% | | | 2.33% |
| Net interest margin | | | 2.48% | | | 2.64% |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| (Dollars in thousands) | | |
| | | |
| Years ended December 31, | 2009 | 2008 |
| Commercial and other loans | $200 | $188 |
| Nontaxable debt securities | 1,546 | 1,458 |
| Corporate stocks | 94 | 203 |
| Total | $1,840 | $1,849 |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited) |
| |
| | At of for the Quarters Ended |
| | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, |
| (Dollars in thousands, except per share amounts) | 2009 | 2009 | 2009 | 2009 | 2008 |
| Calculation of tangible book value per share | | | | | |
| Total shareholders’ equity at end of period | $254,946 | $252,146 | $242,293 | $238,727 | $235,111 |
| Less: | | | | | |
| Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 |
| Identifiable intangible assets, net | 8,943 | 9,233 | 9,536 | 9,844 | 10,152 |
| Total tangible shareholders’ equity at end of period | $187,889 | $184,799 | $174,643 | $170,769 | $166,845 |
| | | | | | |
| Shares outstanding at end of period | 16,042.6 | 16,026.6 | 16,001.9 | 15,949.9 | 15,934.7 |
| | | | | | |
| Book value per share – GAAP | $15.89 | $15.73 | $15.14 | $14.97 | $14.75 |
| Tangible book value per share – Non-GAAP | $11.71 | $11.53 | $10.91 | $10.71 | $10.47 |
| | | | | | |
| | | | | | |
| Calculation of tangible equity to tangible assets | | | | | |
| Total tangible shareholders’ equity at end of period | $187,889 | $184,799 | $174,643 | $170,769 | $166,845 |
| | | | | | |
| Total assets at end of period | $2,884,473 | $2,888,065 | $2,919,808 | $2,947,110 | $2,965,466 |
| Less: | | | | | |
| Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 |
| Identifiable intangible assets, net | 8,943 | 9,233 | 9,536 | 9,844 | 10,152 |
| Total tangible assets at end of period | $2,817,416 | $2,820,718 | $2,852,158 | $2,879,152 | $2,897,200 |
| | | | | | |
| Equity to assets - GAAP | 8.84% | 8.73% | 8.30% | 8.10% | 7.93% |
| Tangible equity to tangible assets – Non-GAAP | 6.67% | 6.55% | 6.12% | 5.93% | 5.76% |
| | | | | | |
| | | | | | |
| Calculation of return on average tangible assets | | | | | |
| Net income | $4,748 | $4,913 | $3,765 | $2,670 | $4,221 |
| | | | | | |
| Total average assets | $2,887,041 | $2,911,110 | $2,924,002 | $2,963,985 | $2,867,086 |
| Less: | | | | | |
| Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 56,139 |
| Average identifiable intangible assets, net | 9,084 | 9,379 | 9,686 | 9,995 | 10,302 |
| Total average tangible assets | $2,819,843 | $2,843,617 | $2,856,202 | $2,895,876 | $2,800,645 |
| | | | | | |
| Return on average assets - GAAP | 0.66% | 0.68% | 0.52% | 0.36% | 0.59% |
| Return on average tangible assets – Non-GAAP | 0.67% | 0.69% | 0.53% | 0.37% | 0.60% |
| | | | | | |
| | | | | | |
| Calculation of return on average tangible equity | | | | | |
| Net income | $4,748 | $4,913 | $3,765 | $2,670 | $4,221 |
| | | | | | |
| Total average shareholders’ equity | $254,211 | $247,585 | $242,270 | $237,522 | $231,101 |
| Less: | | | | | |
| Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 56,139 |
| Average identifiable intangible assets, net | 9,084 | 9,379 | 9,686 | 9,995 | 10,302 |
| Total average tangible shareholders’ equity | $187,013 | $180,092 | $174,470 | $169,413 | $164,660 |
| | | | | | |
| Return on average shareholders’ equity - GAAP | 7.47% | 7.94% | 6.22% | 4.50% | 7.31% |
Return on average tangible shareholders’ equity – Non-GAAP | 10.16% | 10.91% | 8.63% | 6.30% | 10.25% |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited) |
| |
| | For the Years Ended |
| | Dec. 31, | Dec. 31, |
| (Dollars in thousands) | 2009 | 2008 |
| Calculation of return on average tangible assets | | |
| Net income | $16,096 | $22,172 |
| | | |
| Total average assets | $2,921,295 | $2,713,390 |
| Less: | | |
| Average goodwill | 58,114 | 51,917 |
| Average identifiable intangible assets, net | 9,533 | 10,779 |
| Total average tangible assets | $2,853,648 | $2,650,694 |
| | | |
| Return on average assets – GAAP | 0.55% | 0.82% |
| Return on average tangible assets – Non-GAAP | 0.56% | 0.84% |
| | | |
| | | |
| Calculation of return on average tangible equity | | |
| Net income | $16,096 | $22,172 |
| | | |
| Total average shareholders’ equity | $245,449 | $199,395 |
| Less: | | |
| Average goodwill | 58,114 | 51,917 |
| Average identifiable intangible assets, net | 9,533 | 10,779 |
| Total average tangible shareholders’ equity | $177,802 | $136,699 |
| | | |
| Return on average shareholders’ equity – GAAP | 6.56% | 11.12% |
| Return on average tangible shareholders’ equity – Non-GAAP | 9.05% | 16.22% |
