Exhibit 99.1
Washington Trust's Assets Top $2 Billion; First Quarter Earnings Increase 4%
WESTERLY, R.I.--(BUSINESS WIRE)--April 15, 2004--Washington Trust Bancorp,
Inc. (Nasdaq National Market; symbol: WASH), parent company of The Washington
Trust Company, today reported first quarter 2004 net income of $5.0 million, or
37 cents per diluted share, up 4 percent from $4.7 million, or 36 cents per
diluted share, for the first quarter of 2003. The returns on average assets and
average equity for the three months ended March 31, 2004 were 1.00% and 13.90%,
respectively, compared to 1.07% and 14.56%, respectively, for the three months
ended March 31, 2003.
"Washington Trust had a very strong first quarter and surpassed $2 billion
in assets for the first time in the Corporation's 204-year history," stated John
C. Warren, Washington Trust Chairman and CEO. He continued, "We had good growth
in both commercial and consumer loans. In addition, our trust and asset
management revenues were up by 21% over the same quarter last year."
Net interest income for the first quarter of 2004 amounted to $13.1
million, up 10 percent from $11.9 million for the same quarter a year ago. The
increase in net interest income was due to a 12% increase in average
interest-earning assets. The net interest margin for the first quarter of 2004
was 2.87%, unchanged from the fourth quarter of 2003, but lower than the 2.97%
level reported for the first quarter of 2003. The year-to-year decrease in the
net interest margin reflects a decline in yields on loans and securities offset
somewhat by lower funding costs of interest-bearing deposits and Federal Home
Loan Bank ("FHLB") advances.
Noninterest income (excluding net realized gains on securities) amounted to
$5.9 million for the quarter ended March 31, 2004, up from $5.8 million for the
same quarter a year ago. Increases were recognized in trust and investment
management income, service charges on deposits, merchant processing fees and
other income. Revenue from trust and investment management income, the largest
component of noninterest income, totaled $3.1 million for the quarter ended
March 31, 2004, up 21 percent from the comparable quarter in 2003. Trust assets
under administration amounted to $1.782 billion at March 31, 2004, compared to
$1.742 billion at December 31, 2003. Meanwhile, gains on loan sales declined
from $1.2 million in the first quarter of 2003 to $349 thousand in the first
quarter of 2004, primarily due to a drop off in mortgage origination activity.
For the first quarter of 2004, noninterest expenses totaled $11.7 million,
up 6 percent from the first quarter of 2003. The increase in noninterest
expenses occurred primarily in the category of salaries and benefits, the
largest component of total noninterest expense.
Total assets amounted to $2.054 billion at March 31, 2004, up by $80.4
million, or 4 percent, from the December 31, 2003 balance of $1.974 billion.
In the first quarter of 2004, total loans increased $43.4 million to $1.0
billion, with the largest increase in consumer loans. Consumer loans increased
$19.7 million, or 12 percent, from the balance at December 31, 2003 primarily
due to growth in home equity lines and loans. Commercial loans increased $13.0
million, or 3 percent, to $421.4 million at March 31, 2004. Residential real
estate loans amounted to $400.6 million, up $10.7 million from the balance at
December 31, 2003. The Corporation purchased a total of $13.2 million of
adjustable rate residential mortgages from other financial institutions in the
first quarter of 2004.
Total securities were $884.6 million at March 31, 2004, up $45.2 million
from the balance at December 31, 2003. The increase was mainly due to purchases
of mortgage-backed securities.
Total deposits at March 31, 2004 amounted to $1.245 billion, up $38.6
million, or 3 percent, from the December 31, 2003 balance of $1.206 billion.
Savings deposits, including money market deposits, amounted to $522.5 million at
March 31, 2004, up $28.6 million from the December 31, 2003 balance. Time
deposits amounted to $542.8 million at March 31, 2004, up $24.7 million from the
December 31, 2003 balance, primarily due to increases in consumer accounts as
well as brokered certificates of deposit. Total consumer certificates of deposit
amounted to $402.1 million at March 31, 2004, up $16.9 million from the balance
at December 31, 2003. Brokered certificates of deposit increased $8.0 million
during the first quarter of 2004 and totaled $126.2 million at March 31, 2004.
Demand deposits decreased $14.7 million in the first three months of 2004 and
totaled $179.5 million at March 31, 2004, however, demand deposits at December
31, 2003 included a temporary placement of approximately $18.6 million in funds
on deposit that were withdrawn in January 2004. In the first quarter of 2004,
FHLB advances increased $37.1 million to $644.2 million at March 31, 2004.
Asset quality, as measured by the level of nonperforming assets, continues
to be strong in 2004. Nonaccrual loans as a percentage of total loans at March
31, 2004 were .29%, unchanged from December 31, 2003. Similarly, nonperforming
assets (nonaccrual loans and property acquired through foreclosure) as a percent
of total assets at March 31, 2004 and December 31, 2003 amounted to .14%. The
Corporation benefited from favorable loan loss experience in the first quarter
of 2004 as indicated by a $140 thousand excess of loan loss recoveries over
charge-offs. In the first quarter of 2003, charge-offs, net of recoveries,
amounted to $92 thousand.
Total shareholders' equity amounted to $144.6 million at March 31, 2004, up
from $138.1 million at December 31, 2003. Book value per share as of March 31,
2004 and December 31, 2003 amounted to $10.95 and $10.46, respectively.
Washington Trust Bancorp, Inc. Chairman and Chief Executive Officer, John
C. Warren, and David V. Devault, Executive Vice President, Treasurer, and Chief
Financial Officer will host a conference call on Thursday, April 15, at 4:15
p.m. (Eastern Daylight Time) to discuss the Corporation's first quarter results.
Access to the call is available in a listen-only mode on Washington Trust's web
site, http://investorrelations.washtrust.com. A replay of the call will be
posted in this same section of the web site shortly after the conclusion of the
call.
Washington Trust Bancorp, Inc. is the parent of The Washington Trust
Company, a Rhode Island state-chartered bank founded in 1800. The Bank offers a
full range of financial services, including trust and investment management,
through its offices in Rhode Island and southeastern Connecticut. Washington
Trust Bancorp, Inc.'s common stock trades on The Nasdaq Stock Market(R) under
the symbol WASH. Investor information is available on the Corporation's web
site: www.washtrust.com.
This report 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. The Corporation's actual results, performance or achievements could
differ materially from those projected in the forward-looking statements as a
result, among other factors, of changes in general national or regional economic
conditions, changes in interest rates, reductions in the market value of trust
and investment assets under management, reductions in loan demand, reductions in
deposit levels necessitating increased borrowing to fund loans and investments,
changes in loan default and charge-off rates, changes in the size and nature of
the Corporation's competition, changes in legislation or regulation and
accounting principles, policies and guidelines and changes in the assumptions
used in making such forward-looking statements.
Washington Trust Bancorp, Inc. and Subsidiary
FINANCIAL SUMMARY
THREE MONTHS ENDED
(Dollars and shares in thousands, MAR. 31, MAR. 31, DEC. 31,
except per share amounts) 2004 2003 2003
OPERATING RESULTS
Net interest income $13,083 $11,929 $12,861
Provision for loan losses 120 100 100
Net realized gains on securities - 230 -
Other noninterest income 5,940 5,803 5,900
Noninterest expenses 11,680 10,978 11,616
Income tax expense 2,268 2,134 2,186
Net income 4,955 4,750 4,859
PER SHARE
Basic earnings $0.38 $0.36 $0.37
Diluted earnings $0.37 $0.36 $0.36
Dividends declared $0.17 $0.15 $0.16
SHARES OUTSTANDING
Weighted Average: Basic 13,202.6 13,059.3 13,172.3
Diluted 13,513.3 13,230.2 13,538.9
AVERAGE BALANCE SHEET
Federal funds sold and other
short-term investments $11,155 $14,946 $10,804
Taxable debt securities 809,505 764,975 789,173
Nontaxable debt securities 14,235 17,462 14,783
Corporate stocks and Federal Home
Loan Bank stock 54,518 48,025 53,743
Loans: Commercial 412,642 389,545 405,710
Residential 390,834 292,276 380,913
Consumer 170,589 133,050 155,382
Total loans 974,065 814,871 942,005
Earning assets 1,863,478 1,660,279 1,810,508
Total assets 1,988,142 1,778,338 1,933,259
Deposits: Demand 170,289 155,944 180,858
Savings 497,033 459,777 490,866
Time 527,531 481,766 501,852
Total deposits 1,194,853 1,097,487 1,173,576
Federal Home Loan Bank advances 633,195 532,698 606,806
Shareholders' equity 142,582 130,506 136,964
KEY RATIOS
Return on average assets 1.00% 1.07% 1.01%
Return on average equity 13.90% 14.56% 14.19%
Interest rate spread
(taxable equivalent basis) 2.62% 2.68% 2.61%
Net interest margin
(taxable equivalent basis) 2.87% 2.97% 2.87%
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $15,914 $15,487 $15,813
Provision charged to earnings 120 100 100
Net (charge-offs) recoveries 140 (92) 1
Balance at end of period $16,174 $15,495 $15,914
Washington Trust Bancorp, Inc. and Subsidiary
FINANCIAL SUMMARY
(Dollars and shares in thousands, MAR. 31, MAR. 31, DEC. 31,
except per share amounts) 2004 2003 2003
PERIOD END BALANCE SHEET
Assets $2,054,232 $1,815,627 $1,973,807
Total securities 884,592 842,307 839,421
Loans: Commercial 421,440 391,158 408,477
Residential 400,564 285,689 389,855
Consumer 182,344 134,285 162,649
Total loans 1,004,348 811,132 960,981
Deposits: Demand 179,468 169,636 194,144
Savings 522,477 467,027 493,878
Time 542,814 484,183 518,119
Total deposits 1,244,759 1,120,846 1,206,141
Federal Home Loan Bank advances 644,203 544,387 607,104
Shareholders' equity 144,571 131,010 138,055
CAPITAL RATIOS
Tier 1 risk-based capital 9.84% 10.00% 10.00%
Total risk-based capital 11.42% 11.41% 11.57%
Tier 1 leverage ratio 5.66% 5.59% 5.65%
SHARE INFORMATION
Shares outstanding at end of period 13,206.9 13,071.0 13,194.6
Book value per share $10.95 $10.02 $10.46
Tangible book value per share $9.10 $8.10 $8.60
Market value per share $26.40 $20.21 $26.20
CREDIT QUALITY
Nonaccrual loans $2,920 $4,034 $2,743
Other real estate owned, net 11 4 11
Nonperforming assets to total assets 0.14% 0.22% 0.14%
Nonaccrual loans to total loans 0.29% 0.50% 0.29%
Allowance for loan losses
to nonaccrual loans 553.90% 384.11% 580.17%
Allowance for loan losses
to total loans 1.61% 1.91% 1.66%
ASSETS UNDER MANAGEMENT
Market value $1,782,153 $1,478,748 $1,741,948
Washington Trust Bancorp, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
March 31, December 31,
2004 2003
Assets:
Cash and due from banks $35,303 $40,710
Federal funds sold and other
short-term investments 17,630 20,400
Mortgage loans held for sale 2,405 2,486
Securities:
Available for sale, at fair value;
amortized cost $722,247 in 2004
and $663,529 in 2003 737,985 673,845
Held to maturity, at cost; fair value
$150,834 in 2004 and $169,401 in 2003 146,607 165,576
Total securities 884,592 839,421
Federal Home Loan Bank stock, at cost 32,789 31,464
Loans 1,004,348 960,981
Less allowance for loan losses 16,174 15,914
Net loans 988,174 945,067
Premises and equipment, net 25,014 24,941
Accrued interest receivable 8,282 7,911
Goodwill 22,591 22,591
Identifiable intangible assets 1,792 1,953
Other assets 35,660 36,863
Total assets $2,054,232 $1,973,807
Liabilities:
Deposits:
Demand $179,468 $194,144
Savings 522,477 493,878
Time 542,814 518,119
Total deposits 1,244,759 1,206,141
Dividends payable 2,247 2,113
Federal Home Loan Bank advances 644,203 607,104
Other borrowings 1,625 2,311
Accrued expenses and other liabilities 16,827 18,083
Total liabilities 1,909,661 1,835,752
Shareholders' Equity:
Common stock of $.0625 par value; authorized
30 million shares; issued 13,219,949 shares
in 2004 and 13,204,024 shares in 2003 826 825
Paid-in capital 30,090 29,868
Retained earnings 104,200 101,492
Unamortized employee restricted stock (16) (22)
Accumulated other comprehensive income 9,773 6,101
Treasury stock, at cost; 13,052 shares
in 2004 and 9,463 in 2003 (302) (209)
Total shareholders' equity 144,571 138,055
Total liabilities and
shareholders' equity $2,054,232 $1,973,807
Washington Trust Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share amounts)
(Unaudited)
Three months ended March 31, 2004 2003
Interest income:
Interest and fees on loans $13,641 $12,646
Interest on securities 8,255 8,555
Dividends on corporate stock and
Federal Home Loan Bank stock 474 487
Interest on federal funds sold and other
short-term investments 20 37
Total interest income 22,390 21,725
Interest expense:
Savings deposits 729 950
Time deposits 4,018 3,934
Federal Home Loan Bank advances 4,545 4,893
Other 15 19
Total interest expense 9,307 9,796
Net interest income 13,083 11,929
Provision for loan losses 120 100
Net interest income after provision
for loan losses 12,963 11,829
Noninterest income:
Trust and investment management 3,055 2,533
Service charges on deposit accounts 1,170 1,100
Net gains on loan sales 349 1,238
Merchant processing fees 597 457
Income from bank-owned life insurance 299 284
Net realized gains on securities - 230
Other income 470 191
Total noninterest income 5,940 6,033
Noninterest expense:
Salaries and employee benefits 6,977 6,534
Net occupancy 816 762
Equipment 770 837
Merchant processing costs 466 362
Legal, audit and professional fees 258 305
Advertising and promotion 466 270
Outsourced services 376 371
Amortization of intangibles 161 180
Other 1,390 1,357
Total noninterest expense 11,680 10,978
Income before income taxes 7,223 6,884
Income tax expense 2,268 2,134
Net income $4,955 $4,750
Weighted average shares outstanding - basic 13,202.6 13,059.3
Weighted average shares outstanding - diluted 13,513.3 13,230.2
Per share information:
Basic earnings per share $.38 $.36
Diluted earnings per share $.37 $.36
Cash dividends declared per share $.17 $.15
CONTACT: Washington Trust Bancorp, Inc.
Elizabeth B. Eckel, 401-348-1309
ebeckel@washtrust.com