Attached files

file filename
8-K - WASHINGTON TRUST BANCORP, INC. FORM 8-K - WASHINGTON TRUST BANCORP INCform8-k20130130.htm
Exhibit 99.1

NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: January 30, 2013
FOR IMMEDIATE RELEASE

Washington Trust Announces Record Earnings for Fourth Quarter and Full Year 2012
Diluted Earnings Per Share up 17% over 2011

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

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

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

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


-M O R E-


Washington Trust
Page 2, January 30, 2013




The following transactions were included in the results for fourth quarter of 2012:
Balance sheet management transactions were conducted in the quarter and were comprised of:
The sale of mortgage-backed securities with an amortized cost of $33.1 million, resulting in fourth quarter 2012 net realized gains of $924 thousand.
The prepayment of Federal Home Loan Bank of Boston (“FHLBB”) advances totaling $38.8 million, resulting in debt prepayment penalty expense of $1.8 million in the quarter.
The modification of terms of $33.2 million of FHLBB advances with a weighted average maturity of 43 months into longer-term advances with a weighted average maturity of 78 months.
These transactions resulted in net interest income enhancement of approximately $45 thousand in the fourth quarter of 2012 and are expected to result in net interest income enhancement of approximately $577 thousand in 2013, with continuing benefits in future years.
A relatively large commercial loan prepayment penalty fee of $357 thousand was received and included in net interest income.
Two significant insurance commission fees totaling $462 thousand were received in the quarter and reported in wealth management revenues.
The Corporation made a $400 thousand contribution to its charitable foundation, which was classified in other noninterest expenses.
The net impact of these transactions was a reduction in earnings of 2 cents per diluted share in the fourth quarter of 2012.

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

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

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

Noninterest Income
Noninterest income for the fourth quarter of 2012 totaled $17.9 million, up by $966 thousand, or 6%, from the previous quarter and up by $3.1 million, or 21%, from the fourth quarter of 2011. Included in noninterest income were:
Fourth quarter 2012 wealth management insurance commission fees of $462 thousand mentioned above;
Net realized gains on sales of securities of $924 thousand in the fourth quarter of 2012;
A $528 thousand non-taxable gain related to the receipt of BOLI proceeds in the third quarter of 2012; and
$501 thousand of net realized gains on sales of securities recognized in the fourth quarter of 2011.


-M O R E-


Washington Trust
Page 3, January 30, 2013




Excluding these items, noninterest income for the fourth quarter of 2012 increased by $108 thousand, or 1%, from the previous quarter and up by $2.2 million, or 15%, from the fourth quarter of 2011. Significant changes in noninterest income, on this basis, included the following:
Mortgage banking revenues increased by $972 thousand, or 28%, from the third quarter of 2012 and by $1.5 million, or 53%, from the fourth quarter of 2011, due to a record quarter of mortgage origination and sales activity.
Fourth quarter 2012 wealth management revenues were $7.8 million. Excluding the above mentioned insurance commission fees, these revenues were up by $135 thousand, or 2%, on a linked quarter basis and up by $403 thousand, or 6%, compared to the fourth quarter of 2011.
Merchant processing fees totaled $2.2 million for the fourth quarter of 2012, down by $975 thousand, or 30%, on a linked quarter basis and up by $176 thousand, or 9%, compared to the fourth quarter of 2011. On a linked quarter basis, the decline reflects a seasonal decrease in the volume of transactions processed for customers. See discussion on the corresponding linked quarter decrease in merchant processing costs under the caption “Noninterest Expenses.”

Noninterest Expenses
Noninterest expenses totaled $27.4 million for the fourth quarter of 2012, up by $1.1 million, or 4%, from the previous quarter and up by $2.6 million, or 11%, from the fourth quarter of 2011. Included in noninterest expenses were:
Debt prepayment penalties of $1.8 million in the fourth quarter of 2012, $1.2 million in third quarter of 2012 and $473 thousand in the fourth quarter of 2011; and
Charitable contribution expense of $400 thousand in the fourth quarter of 2012 and $990 thousand in the fourth quarter of 2011.

Excluding these items, noninterest expenses for the fourth quarter of 2012 increased by $130 thousand, or 1%, from the previous quarter and up by $1.9 million, or 8%, from the fourth quarter of 2011. Significant changes in noninterest expenses, on this basis, included the following:
Salaries and employee benefit costs amounted to $15.7 million in the fourth quarter of 2012, an increase of $447 thousand, or 3%, from the previous quarter and up by $1.7 million, or 12%, from the fourth quarter of 2011, reflecting higher staffing levels to support growth and higher levels of business development based compensation primarily in mortgage banking.
Merchant processing costs totaled $1.9 million in the fourth quarter of 2012, down by $804 thousand, or 30%, on a linked quarter basis and up by $138 thousand, or 8%, compared to the fourth quarter of 2011. See the discussion above regarding the corresponding linked quarter decrease in merchant processing fee income.

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



-M O R E-


Washington Trust
Page 4, January 30, 2013



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

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

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

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

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

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

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

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



-M O R E-


Washington Trust
Page 5, January 30, 2013



Capital Management
Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.26% at December 31, 2012, compared to 12.86% at December 31, 2011. Total shareholder's equity was $295.7 million at December 31, 2012, down by $2.7 million from the balance at September 30, 2012 and up by $14.3 million from the balance at December 31, 2011. A charge of $6.1 million to the accumulated other comprehensive income component of shareholders' equity was recorded at December 31, 2012, associated with the periodic remeasurement of the value of defined benefit pension liabilities. This charge was largely due to a decline in the discount rates used to measure the present value of pension liabilities as a result of a reduction in market rates of interest.

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

Conference Call
Washington Trust will host a conference call on Thursday, January 31, 2013 at 8:30 a.m. Eastern Time to discuss fourth quarter results and business outlook. This call is being webcast and can be accessed through the Investor Relations section of the Washington Trust web site, www.washtrust.com. Individuals may dial in to the call at 1-866-250-8117. The international dial-in number is 1-412-317-6011 and the Canada dial-in number is 1-855-669-9657. A replay of the call will be posted in this same location on the web site shortly after the conclusion of the call. To listen to the replay, dial 1-877-344-7529. For international access, dial 1-412-317-0088. The Conference Number for replay is 10023365. The replay will be available until 9:00 a.m. on February 15, 2013.




-M O R E-


Washington Trust
Page 6, January 30, 2013




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

Forward-Looking Statements
This press release contains certain statements that are “forward-looking statements”. We may also make written or oral forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Washington Trust. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following: continued weakness in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits, reductions in the market value of wealth management assets under administration, changes in the value of securities and other assets, reductions in loan demand, changes in loan collectibility, default and charge-off rates, changes in the size and nature of Washington Trust's competition, changes in legislation or regulation and accounting principles, policies and guidelines, and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the Securities and Exchange Commission and as updated by our Quarterly Reports on Form 10-Q, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this press release, and Washington Trust assumes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.







Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS (unaudited)
(Dollars in thousands, except par value)
 
Dec 31,
2012
 
Dec 31,
2011
Assets:
 
 
 
 
Cash and due from banks
 

$73,474

 

$82,238

Short-term investments
 
19,176

 
4,782

Mortgage loans held for sale, at fair value; amortized cost $48,370 in 2012 and $19,624 in 2011
 
50,056

 
20,340

Securities:
 
 
 
 
Available for sale, at fair value; amortized cost $363,408 in 2012 and $524,036 in 2011
 
375,498

 
541,253

Held to maturity, at cost; fair value $41,420 in 2012 and $52,499 in 2011
 
40,381

 
52,139

Total securities
 
415,879

 
593,392

Federal Home Loan Bank stock, at cost
 
40,418

 
42,008

Loans:
 
 
 
 
Commercial and other
 
1,252,419

 
1,124,628

Residential real estate
 
717,681

 
700,414

Consumer
 
323,903

 
322,117

Total loans
 
2,294,003

 
2,147,159

Less allowance for loan losses
 
30,873

 
29,802

Net loans
 
2,263,130

 
2,117,357

Premises and equipment, net
 
27,232

 
26,028

Investment in bank-owned life insurance
 
54,823

 
53,783

Goodwill
 
58,114

 
58,114

Identifiable intangible assets, net
 
6,173

 
6,901

Other assets
 
63,409

 
59,155

Total assets
 

$3,071,884

 

$3,064,098

Liabilities:
 
 
 
 
Deposits:
 
 
 
 
Demand deposits
 

$379,889

 

$339,809

NOW accounts
 
291,174

 
257,031

Money market accounts
 
496,402

 
406,777

Savings accounts
 
274,934

 
243,904

Time deposits
 
870,232

 
878,794

Total deposits
 
2,312,631

 
2,126,315

Federal Home Loan Bank advances
 
361,172

 
540,450

Junior subordinated debentures
 
32,991

 
32,991

Other borrowings
 
1,212

 
19,758

Other liabilities
 
68,226

 
63,233

Total liabilities
 
2,776,232

 
2,782,747

Shareholders’ Equity:
 
 
 
 
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,379,771 shares in 2012 and 16,292,471 shares in 2011
 
1,024

 
1,018

Paid-in capital
 
91,453

 
88,030

Retained earnings
 
213,674

 
194,198

Accumulated other comprehensive loss
 
(10,499
)
 
(1,895
)
Total shareholders’ equity
 
295,652

 
281,351

Total liabilities and shareholders’ equity
 

$3,071,884

 

$3,064,098








Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(Dollars and shares in thousands, except per share amounts)
Three Months
 
 
Twelve Months
Periods ended December 31,
2012

 
2011

 
2012
 
2011
Interest income:
 
 
 
 
 
 
 
Interest and fees on loans
 

$26,109

 

$25,284

 

$102,656

 

$99,319

Interest on securities:
Taxable
3,241

 
4,422

 
15,359

 
18,704

 
Nontaxable
664

 
727

 
2,699

 
3,001

Dividends on corporate stock and Federal Home Loan Bank stock
49

 
57

 
256

 
253

Other interest income
27

 
17

 
91

 
69

Total interest income
30,090

 
30,507

 
121,061

 
121,346

Interest expense:


 


 


 


Deposits
3,380

 
3,652

 
13,590

 
15,692

Federal Home Loan Bank advances
3,148

 
4,202

 
14,957

 
18,158

Junior subordinated debentures
394

 
393

 
1,570

 
1,568

Other interest expense
4

 
245

 
248

 
973

Total interest expense
6,926

 
8,492

 
30,365

 
36,391

Net interest income
23,164

 
22,015

 
90,696

 
84,955

Provision for loan losses
600

 
1,000

 
2,700

 
4,700

Net interest income after provision for loan losses
22,564

 
21,015

 
87,996

 
80,255

Noninterest income:


 


 


 


Wealth management services:
 

 
 

 
 

 
 

Trust and investment advisory fees
5,991

 
5,487

 
23,465

 
22,532

Mutual fund fees
1,018

 
994

 
4,069

 
4,287

Financial planning, commissions and other service fees
781

 
444

 
2,107

 
1,487

Wealth management services
7,790

 
6,925

 
29,641

 
28,306

Service charges on deposit accounts
837

 
793

 
3,193

 
3,455

Merchant processing fees
2,232

 
2,056

 
10,159

 
9,905

Card interchange fees
636

 
584

 
2,480

 
2,249

Income from bank-owned life insurance
479

 
493

 
2,448

 
1,939

Net gains on loan sales and commissions on loans originated for others
4,476

 
2,935

 
14,092

 
5,074

Net realized gains on securities
924

 
501

 
1,223

 
698

Net gains on interest rate swap contracts
168

 
12

 
255

 
6

Equity in earnings (losses) of unconsolidated subsidiaries
82

 
220

 
196

 
(213
)
Other income
275

 
307

 
1,748

 
1,536

Noninterest income, excluding other-than-temporary impairment losses
17,899

 
14,826

 
65,435

 
52,955

Total other-than-temporary impairment losses on securities
57

 

 
(28
)
 
(54
)
Portion of loss recognized in other comprehensive income (before tax)
(69
)
 

 
(193
)
 
(137
)
Net impairment losses recognized in earnings
(12
)
 

 
(221
)
 
(191
)
Total noninterest income
17,887

 
14,826

 
65,214

 
52,764

Noninterest expense:


 


 


 


Salaries and employee benefits
15,661

 
13,957

 
59,786

 
51,095

Net occupancy
1,518

 
1,376

 
6,039

 
5,295

Equipment
1,222

 
1,133

 
4,640

 
4,344

Merchant processing costs
1,903

 
1,765

 
8,593

 
8,560

Outsourced services
900

 
920

 
3,560

 
3,530

FDIC deposit insurance costs
419

 
429

 
1,730

 
2,043

Legal, audit and professional fees
641

 
538

 
2,240

 
1,927

Advertising and promotion
435

 
478

 
1,730

 
1,819

Amortization of intangibles
173

 
246

 
728

 
951

Foreclosed property costs
158

 
329

 
762

 
878

Debt prepayment penalties
1,774

 
473

 
3,908

 
694

Other expenses
2,617

 
3,130

 
8,622

 
9,237

Total noninterest expense
27,421

 
24,774

 
102,338

 
90,373

Income before income taxes
13,030

 
11,067

 
50,872

 
42,646

Income tax expense
4,007

 
3,290

 
15,798

 
12,922

Net income

$9,023

 

$7,777

 

$35,074

 

$29,724

 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
16,376

 
16,288

 
16,358

 
16,254

Weighted average common shares outstanding - diluted
16,425

 
16,326

 
16,401

 
16,284

Per share information:
Basic earnings per common share

$0.55

 

$0.48

 

$2.13

 

$1.82

 
Diluted earnings per common share

$0.55

 

$0.47

 

$2.13

 

$1.82

 
Cash dividends declared per share

$0.24

 

$0.22

 

$0.94

 

$0.88







Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
At or for the Quarters Ended
(Dollars and shares in thousands, except per share amounts)
Dec 31,
2012
Sep 30,
2012
Jun 30,
2012
Mar 31,
2012
Dec 31,
2011
Financial Data:
 
 
 
 
 
Total assets

$3,071,884


$3,048,868


$3,041,050


$3,028,690


$3,064,098

Total loans
2,294,003

2,256,697

2,213,842

2,155,359

2,147,159

Total securities
415,879

483,858

516,193

558,284

593,392

Total deposits
2,312,631

2,234,659

2,130,453

2,145,562

2,126,315

Total shareholders' equity
295,652

298,394

292,734

287,935

281,351

Net interest income
23,164

22,736

22,411

22,385

22,015

Provision for loan losses
600

600

600

900

1,000

Noninterest income, excluding OTTI losses
17,899

16,921

16,174

14,441

14,826

Net OTTI losses recognized in earnings
(12
)


(209
)

Noninterest expenses
27,421

26,290

25,228

23,399

24,774

Income tax expense
4,007

3,867

4,044

3,880

3,290

Net income
9,023

8,900

8,713

8,438

7,777

 
 
 
 
 
 
Share Data:
 
 
 
 
 
Basic earnings per common share

$0.55


$0.54


$0.53


$0.51


$0.48

Diluted earnings per common share

$0.55


$0.54


$0.53


$0.51


$0.47

Dividends declared per share

$0.24


$0.24


$0.23


$0.23


$0.22

Book value per share

$18.05


$18.23


$17.89


$17.61


$17.27

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

$14.13


$14.29


$13.94


$13.64


$13.28

Market value per share

$26.31


$26.27


$24.38


$24.14


$23.86

Shares outstanding at end of period
16,380

16,371

16,359

16,354

16,292

Weighted average common shares outstanding - basic
16,376

16,366

16,358

16,330

16,288

Weighted average common shares outstanding - diluted
16,425

16,414

16,392

16,370

16,327

 
 
 
 
 
 
Key Ratios:
 
 
 
 
 
Return on average assets
1.19
%
1.17
%
1.16
%
1.11
%
1.04
%
Return on average tangible assets - Non-GAAP (1)
1.21
%
1.19
%
1.18
%
1.14
%
1.07
%
Return on average equity
12.01
%
12.02
%
11.98
%
11.85
%
10.89
%
Return on average tangible equity - Non-GAAP (1)
15.29
%
15.37
%
15.41
%
15.35
%
14.10
%
 
 
 
 
 
 
Capital Ratios:
 
 
 
 
 
Tier 1 risk-based capital
12.01% (i)

11.93
%
11.90
%
11.96
%
11.61
%
Total risk-based capital
13.26% (i)

13.18
%
13.15
%
13.22
%
12.86
%
Tier 1 leverage ratio
9.30% (i)

9.11
%
9.00
%
8.75
%
8.70
%
Equity to assets
9.62
%
9.79
%
9.63
%
9.51
%
9.18
%
Tangible equity to tangible assets - Non-GAAP (1)
7.69
%
7.84
%
7.66
%
7.53
%
7.21
%
(i) - estimated
 
 
 
 
 
 
 
 
 
 
 
Wealth Management Assets under Administration:
 
 
 
 
 
Balance at beginning of period

$4,242,520


$4,079,913


$4,196,447


$3,900,061


$3,728,837

Net investment (depreciation) appreciation & income
(5,887
)
155,427

(131,896
)
298,155

215,449

Net client cash flows
(36,993
)
7,180

15,362

(1,769
)
(36,815
)
Other (2)




(7,410
)
Balance at end of period

$4,199,640


$4,242,520


$4,079,913


$4,196,447


$3,900,061

(1)
See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
(2)
Represents declassifications of largely low fee-paying assets from assets under administration due to a change in the scope and/or frequency of services provided by Washington Trust. The impact of this change on wealth management revenues was minimal.





Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
Twelve Months Ended
(Dollars and shares in thousands, except per share amounts)
Dec 31,
2012
 
Dec 31,
2011
Financial Data:
 
 
 
Net interest income

$90,696

 

$84,955

Provision for loan losses
2,700

 
4,700

Noninterest income, excluding OTTI losses
65,435

 
52,955

Net OTTI losses recognized in earnings
(221
)
 
(191
)
Noninterest expenses
102,338

 
90,373

Income tax expense
15,798

 
12,922

Net income
35,074

 
29,724

 
 
 
 
Share Data:
 
 
 
Basic earnings per common share

$2.13

 

$1.82

Diluted earnings per common share

$2.13

 

$1.82

Dividends declared per share

$0.94

 

$0.88

Weighted average common shares outstanding - basic
16,358

 
16,254

Weighted average common shares outstanding - diluted
16,401

 
16,284

 
 
 
 
Key Ratios:
 
 
 
Return on average assets
1.16
%
 
1.02
%
Return on average tangible assets - Non-GAAP (1)
1.18
%
 
1.04
%
Return on average equity
11.97
%
 
10.61
%
Return on average tangible equity - Non-GAAP (1)
15.35
%
 
13.85
%
 
 
 
 
Asset Quality Data:
 
 
 
Allowance for Loan Losses:
 
 
 
Balance at beginning of period

$29,802

 

$28,583

Provision charged to earnings
2,700

 
4,700

Charge-offs
(2,335
)
 
(3,834
)
Recoveries
706

 
353

Balance at end of period

$30,873

 

$29,802

 
 
 
 
Net Loan Charge-Offs (Recoveries):
 
 
 
Commercial mortgages

$43

 

$953

Other commercial
1,076

 
1,374

Residential real estate mortgages
257

 
637

Consumer
253

 
517

Total

$1,629

 

$3,481

 
 
 
 
Net charge-offs to average loans (annualized)
0.07
%
 
0.17
%
 
 
 
 
Wealth Management Assets Under Administration: 
 
 
 
Balance at beginning of period

$3,900,061

 

$3,967,207

Net investment appreciation (depreciation) & income
315,799

 
(12,324
)
Net client cash flows
(16,220
)
 
(47,412
)
Other (2)

 
(7,410
)
Balance at end of period

$4,199,640

 

$3,900,061

(1)
See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
(2)
Represents declassifications of largely low fee-paying assets from assets under administration due to a change in the scope and/or frequency of services provided by Washington Trust. The impact of this change on wealth management revenues was minimal.





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

 
 
At December 31, 2012
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
(Dollars in thousands)
 
Cost (1)
 
Gains
 
Losses
 
Value
Securities Available for Sale:
 
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises
 

$29,458

 

$2,212

 

$—

 

$31,670

Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
 
217,136

 
14,097

 

 
231,233

States and political subdivisions
 
68,196

 
4,424

 

 
72,620

Trust preferred securities:
 
 
 
 
 
 
 
 
Individual name issuers
 
30,677

 

 
(5,926
)
 
24,751

Collateralized debt obligations
 
4,036

 

 
(3,193
)
 
843

Corporate bonds
 
13,905

 
476

 

 
14,381

Total securities available for sale
 
363,408

 
21,209

 
(9,119
)
 
375,498

Held to Maturity:
 
 
 
 
 
 
 
 
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
 
40,381

 
1,039

 

 
41,420

Total securities held to maturity
 
40,381

 
1,039

 

 
41,420

Total securities
 

$403,789

 

$22,248

 

($9,119
)
 

$416,918

(1)
Net of other-than-temporary impairment losses recognized in earnings.






Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
Period End Balances At
(Dollars in thousands)
Dec 31,
2012
Sep 30,
2012
Jun 30,
2012
Mar 31,
2012
Dec 31,
2011
Loans:
 
 
 
 
 
Commercial:
Mortgages

$710,813


$693,221


$664,410


$642,012


$624,813

 
Construction & development
27,842

25,132

17,365

11,130

10,955

 
Other
513,764

500,974

510,220

486,258

488,860

 
Total commercial
1,252,419

1,219,327

1,191,995

1,139,400

1,124,628

Residential real estate:
Mortgages
692,798

692,659

680,772

675,249

678,582

 
Homeowner construction
24,883

22,753

21,247

21,708

21,832

 
Total residential real estate
717,681

715,412

702,019

696,957

700,414

Consumer:
Home equity lines
226,861

227,549

224,550

223,311

223,430

 
Home equity loans
39,329

39,452

40,690

40,793

43,121

 
Other
57,713

54,957

54,588

54,898

55,566

 
Total consumer
323,903

321,958

319,828

319,002

322,117

 
Total loans

$2,294,003


$2,256,697


$2,213,842


$2,155,359


$2,147,159

 
At December 31, 2012
(Dollars in thousands)
Balance

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

$707,068

95.7
%
New York
22,081

3.0
%
New Hampshire
9,290

1.3
%
Other
216

%
Total commercial real estate loans (1)

$738,655

100.0
%
(1)
Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.
 
At December 31, 2012
(Dollars in thousands)
Balance
% of Total
Residential Mortgages by Property Location:
 
 
Rhode Island, Connecticut, Massachusetts

$697,814

97.2
%
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia
9,591

1.3
%
New Hampshire
3,903

0.5
%
Ohio
2,953

0.4
%
Washington, Oregon
1,379

0.2
%
Georgia
1,101

0.2
%
New Mexico
476

0.1
%
Other
464

0.1
%
Total residential mortgages

$717,681

100.0
%
 
 
Period End Balances At
(Dollars in thousands)
 
Dec 31,
2012
Sep 30,
2012
Jun 30,
2012
Mar 31,
2012
Dec 31,
2011
Deposits:
 
 
 
 
 
 
Demand deposits
 

$379,889


$352,330


$321,488


$333,833


$339,809

NOW accounts
 
291,174

267,495

263,124

258,986

257,031

Money market accounts
 
496,402

459,671

388,686

400,396

406,777

Savings accounts
 
274,934

268,191

264,772

257,495

243,904

Time deposits
 
870,232

886,972

892,383

894,852

878,794

Total deposits
 

$2,312,631


$2,234,659


$2,130,453


$2,145,562


$2,126,315

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

$102,636


$98,603


$102,661


$95,989


$90,073

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

$2,209,995


$2,136,056


$2,027,792


$2,049,573


$2,036,242







Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
Period End Balances At
(Dollars in thousands)
Dec 31,
2012
 
Sep 30,
2012
 
Jun 30,
2012
 
Mar 31,
2012
 
Dec 31,
2011
Asset Quality Data:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$10,681

 

$5,956

 

$2,597

 

$5,099

 

$5,709

Commercial construction and development

 

 

 

 

Other commercial
4,412

 
3,201

 
3,405

 
4,200

 
3,708

Residential real estate mortgages
6,158

 
7,127

 
8,659

 
9,031

 
10,614

Consumer
1,292

 
1,463

 
1,081

 
1,069

 
1,206

Total nonaccrual loans

$22,543

 

$17,747

 

$15,742

 

$19,399

 

$21,237

Nonaccrual investment securities
843

 
929

 
767

 
750

 
887

Property acquired through foreclosure or repossession
2,047

 
2,447

 
2,332

 
3,478

 
2,647

Total nonperforming assets

$25,433

 

$21,123

 

$18,841

 

$23,627

 

$24,771

 
 
 
 
 
 
 
 
 
 
Total past due loans to total loans
1.22
%
 
1.05
%
 
0.92
%
 
0.98
%
 
1.22
%
Nonperforming assets to total assets
0.83
%
 
0.69
%
 
0.62
%
 
0.78
%
 
0.81
%
Nonaccrual loans to total loans
0.98
%
 
0.79
%
 
0.71
%
 
0.90
%
 
0.99
%
Allowance for loan losses to nonaccrual loans
136.95
%
 
173.28
%
 
193.42
%
 
154.88
%
 
140.33
%
Allowance for loan losses to total loans
1.35
%
 
1.36
%
 
1.38
%
 
1.39
%
 
1.39
%
 
 
 
 
 
 
 
 
 
 
Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
 
 
Accruing troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$9,569

 

$9,131

 

$1,251

 

$1,059

 

$6,389

Other commercial
6,577

 
6,880

 
6,916

 
7,329

 
6,625

Residential real estate mortgages
1,123

 
386

 
570

 
935

 
1,481

Consumer
154

 
158

 
159

 
174

 
171

Accruing troubled debt restructured loans
17,423

 
16,555

 
8,896

 
9,497

 
14,666

Nonaccrual troubled debt restructured loans:
 
 
 
 
 
 
 
 
 
Commercial mortgages

 

 

 
348

 
91

Other commercial
2,063

 
2,306

 
2,317

 
2,361

 
2,154

Residential real estate mortgages
688

 
1,697

 
2,028

 
1,904

 
2,615

Consumer
44

 
46

 
47

 
35

 
106

Nonaccrual troubled debt restructured loans
2,795

 
4,049

 
4,392

 
4,648

 
4,966

Total troubled debt restructured loans

$20,218

 

$20,604

 

$13,288

 

$14,145

 

$19,632








Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
 
Period End Balances At
(Dollars in thousands)
Dec 31,
2012
 
Sep 30,
2012
 
Jun 30,
2012
 
Mar 31,
2012
 
Dec 31,
2011
Past Due Loans:
 
 
 
 
 
 
 
 
 
Loans 30-59 Days Past Due:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$373

 

$3,978

 

$411

 

$104

 

$1,621

Other commercial loans
260

 
2,719

 
849

 
1,031

 
3,760

Residential real estate mortgages
4,840

 
2,368

 
4,969

 
4,468

 
3,969

Consumer loans
1,134

 
1,876

 
2,660

 
2,404

 
1,073

Loans 30-59 days past due

$6,607

 

$10,941

 

$8,889

 

$8,007

 

$10,423

 
 
 
 
 
 
 
 
 
 
Loans 60-89 Days Past Due:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$408

 

$874

 

$233

 

$—

 

$315

Other commercial loans
296

 
1,169

 
434

 
33

 
982

Residential real estate mortgages
1,951

 
821

 
1,600

 
488

 
1,505

Consumer loans
385

 
1,213

 
677

 
219

 
263

Loans 60-89 days past due

$3,040

 

$4,077

 

$2,944

 

$740

 

$3,065

 
 
 
 
 
 
 
 
 
 
Loans 90 Days or more Past Due:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$10,300

 

$2,495

 

$2,339

 

$4,676

 

$4,995

Other commercial loans
3,647

 
1,366

 
1,714

 
2,521

 
633

Residential real estate mortgages
3,658

 
3,924

 
4,039

 
4,843

 
6,283

Consumer loans
844

 
811

 
362

 
326

 
874

Loans 90 days or more past due

$18,449

 

$8,596

 

$8,454

 

$12,366

 

$12,785

 
 
 
 
 
 
 
 
 
 
Total Past Due Loans:
 
 
 
 
 
 
 
 
 
Commercial mortgages

$11,081

 

$7,347

 

$2,983

 

$4,780

 

$6,931

Other commercial loans
4,203

 
5,254

 
2,997

 
3,585

 
5,375

Residential real estate mortgages
10,449

 
7,113

 
10,608

 
9,799

 
11,757

Consumer loans
2,363

 
3,900

 
3,699

 
2,949

 
2,210

Total past due loans

$28,096

 

$23,614

 

$20,287

 

$21,113

 

$26,273

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans included in past due loans

$20,979

 

$14,471

 

$12,719

 

$14,747

 

$17,588


 
For the Quarters Ended
(Dollars in thousands)
Dec 31,
2012
 
Sep 30,
2012
 
Jun 30,
2012
 
Mar 31,
2012
 
Dec 31,
2011
Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
Balance at beginning of period

$30,752

 

$30,448

 

$30,045

 

$29,802

 

$29,641

Provision charged to earnings
600

 
600

 
600

 
900

 
1,000

Charge-offs
(534
)
 
(424
)
 
(696
)
 
(681
)
 
(920
)
Recoveries
55

 
128

 
499

 
24

 
81

Balance at end of period

$30,873

 

$30,752

 

$30,448

 

$30,045

 

$29,802

 
 
 
 
 
 
 
 
 
 
Net Loan Charge-Offs (Recoveries):
 
 
 
 
 
 
 
 
 
Commercial mortgages

$212

 

$212

 

($388
)
 

$7

 

$249

Other commercial
225

 
(22
)
 
549

 
324

 
39

Residential real estate mortgages
39

 
41

 
(47
)
 
224

 
273

Consumer
3

 
65

 
83

 
102

 
278

Total

$479

 

$296

 

$197

 

$657

 

$839







The following tables present average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes, net of the related federal tax benefit. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Three months ended December 31,
 
2012
 
2011
 
 
Average Balance
Interest
Yield/
Rate
 
Average Balance
Interest
Yield/
 Rate
(Dollars in thousands)
 
Assets:
 
 
 
 
 
 
 
 
Commercial mortgages and other commercial loans
 

$1,227,120


$15,121

4.90
%
 

$1,082,834


$14,159

5.19
%
Residential real estate loans, including mortgage loans held for sale
 
757,764

8,049

4.23
%
 
717,250

8,065

4.46
%
Consumer loans
 
322,476

3,131

3.86
%
 
323,339

3,155

3.87
%
Total loans
 
2,307,360

26,301

4.53
%
 
2,123,423

25,379

4.74
%
Cash, federal funds sold and short-term investments
 
42,056

27

0.26
%
 
35,429

17

0.19
%
FHLBB stock
 
40,418

49

0.48
%
 
42,008

32

0.30
%
 
 
 
 
 
 
 
 
 
Taxable debt securities
 
369,736

3,241

3.49
%
 
490,589

4,422

3.58
%
Nontaxable debt securities
 
68,198

1,010

5.89
%
 
75,352

1,105

5.82
%
Corporate stocks
 


%
 
2,291

34

5.89
%
Total securities
 
437,934

4,251

3.86
%
 
568,232

5,561

3.88
%
Total interest-earning assets
 
2,827,768

30,628

4.31
%
 
2,769,092

30,989

4.44
%
Noninterest-earning assets
 
216,996

 
 
 
214,556

 
 
Total assets
 

$3,044,764

 
 
 

$2,983,648

 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
 
 
NOW accounts
 

$276,572


$49

0.07
%
 

$243,241


$63

0.10
%
Money market accounts
 
473,747

338

0.28
%
 
402,652

245

0.24
%
Savings accounts
 
271,716

60

0.09
%
 
239,110

70

0.12
%
Time deposits
 
886,355

2,933

1.32
%
 
897,535

3,274

1.45
%
FHLBB advances
 
382,465

3,148

3.27
%
 
484,537

4,202

3.44
%
Junior subordinated debentures
 
32,991

394

4.75
%
 
32,991

393

4.73
%
Other
 
289

4

5.51
%
 
21,194

245

4.59
%
Total interest-bearing liabilities
 
2,324,135

6,926

1.19
%
 
2,321,260

8,492

1.45
%
Demand deposits
 
362,060

 
 
 
330,027

 
 
Other liabilities
 
58,139

 
 
 
46,654

 
 
Shareholders' equity
 
300,430

 
 
 
285,707

 
 
Total liabilities and shareholders' equity
 

$3,044,764

 
 
 

$2,983,648

 
 
Net interest income (FTE)
 
 

$23,702

 
 
 

$22,497

 
Interest rate spread
 
 
 
3.12
%
 
 
 
2.99
%
Net interest margin
 
 
 
3.33
%
 
 
 
3.22
%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands)
 
 
 
Three months ended December 31,
2012

 
2011

Commercial loans

$192

 

$95

Nontaxable debt securities
346

 
376

Corporate stocks

 
11

Total

$538

 

$482







Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Twelve months ended December 31,
 
2012
 
2011
 
 
Average Balance
Interest
Yield/
Rate
 
Average Balance
Interest
Yield/
 Rate
(Dollars in thousands)
 
Assets:
 
 
 
 
 
 
 
 
Commercial mortgages and other commercial loans
 

$1,177,268


$58,823

5.00
%
 

$1,063,322


$55,592

5.23
%
Residential real estate loans, including mortgage loans held for sale
 
733,178

31,974

4.36
%
 
678,697

31,447

4.63
%
Consumer loans
 
320,828

12,428

3.87
%
 
324,002

12,649

3.90
%
Total loans
 
2,231,274

103,225

4.63
%
 
2,066,021

99,688

4.83
%
Cash, federal funds sold and short-term investments
 
41,359

91

0.22
%
 
35,625

69

0.19
%
FHLBB stock
 
40,713

207

0.51
%
 
42,008

124

0.30
%
 
 
 
 
 
 
 
 
 
Taxable debt securities
 
431,024

15,359

3.56
%
 
489,210

18,704

3.82
%
Nontaxable debt securities
 
69,838

4,115

5.89
%
 
77,634

4,555

5.87
%
Corporate stocks
 
910

68

7.47
%
 
2,456

177

7.21
%
Total securities
 
501,772

19,542

3.89
%
 
569,300

23,436

4.12
%
Total interest-earning assets
 
2,815,118

123,065

4.37
%
 
2,712,954

123,317

4.55
%
Noninterest-earning assets
 
221,031

 
 
 
214,214

 
 
Total assets
 

$3,036,149

 
 
 

$2,927,168

 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
 
 
NOW accounts
 

$259,595


$175

0.07
%
 

$232,545


$242

0.10
%
Money market accounts
 
430,262

1,078

0.25
%
 
392,002

1,051

0.27
%
Savings accounts
 
261,795

276

0.11
%
 
229,180

286

0.12
%
Time deposits
 
893,474

12,061

1.35
%
 
925,064

14,113

1.53
%
FHLBB advances
 
466,424

14,957

3.21
%
 
492,714

18,158

3.69
%
Junior subordinated debentures
 
32,991

1,570

4.76
%
 
32,991

1,568

4.75
%
Other
 
5,093

248

4.87
%
 
21,891

973

4.44
%
Total interest-bearing liabilities
 
2,349,634

30,365

1.29
%
 
2,326,387

36,391

1.56
%
Demand deposits
 
338,046

 
 
 
278,120

 
 
Other liabilities
 
55,382

 
 
 
42,554

 
 
Shareholders' equity
 
293,087

 
 
 
280,107

 
 
Total liabilities and shareholders' equity
 

$3,036,149

 
 
 

$2,927,168

 
 
Net interest income (FTE)
 
 

$92,700

 
 
 

$86,926

 
Interest rate spread
 
 
 
3.08
%
 
 
 
2.99
%
Net interest margin
 
 
 
3.29
%
 
 
 
3.20
%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands)
 
 
 
Twelve months ended December 31,
2012

 
2011

Commercial loans

$569

 

$369

Nontaxable debt securities
1,416

 
1,553

Corporate stocks
19

 
49

Total

$2,004

 

$1,971









Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
 
At or for the Quarters Ended
(Dollars in thousands, except per share amounts)
Dec 31,
2012
Sep 30,
2012
Jun 30,
2012
Mar 31,
2012
Dec 31,
2011
Calculation of Tangible Book Value per Share:
 
 
 
 
 
Total shareholders' equity at end of period

$295,652


$298,394


$292,734


$287,935


$281,351

Less:
 
 
 
 
 
Goodwill
58,114

58,114

58,114

58,114

58,114

Identifiable intangible assets, net
6,173

6,346

6,528

6,714

6,901

Total tangible shareholders' equity at end of period

$231,365


$233,934


$228,092


$223,107


$216,336

 
 
 
 
 
 
Shares outstanding at end of period
16,380

16,371

16,359

16,354

16,292

 
 
 
 
 
 
Book value per share - GAAP

$18.05


$18.23


$17.89


$17.61


$17.27

Tangible book value per share - Non-GAAP

$14.13


$14.29


$13.94


$13.64


$13.28

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

$231,365


$233,934


$228,092


$223,107


$216,336

 
 
 
 
 
 
Total assets at end of period

$3,071,884


$3,048,868


$3,041,050


$3,028,690


$3,064,098

Less:
 
 
 
 
 
Goodwill
58,114

58,114

58,114

58,114

58,114

Identifiable intangible assets, net
6,173

6,346

6,528

6,714

6,901

Total tangible assets at end of period

$3,007,597


$2,984,408


$2,976,408


$2,963,862


$2,999,083

 
 
 
 
 
 
Equity to assets - GAAP
9.62
%
9.79
%
9.63
%
9.51
%
9.18
%
Tangible equity to tangible assets - Non-GAAP
7.69
%
7.84
%
7.66
%
7.53
%
7.21
%
 
 
 
 
 
 
Calculation of Return on Average Tangible Assets:
 
 
 
 
 
Net income

$9,023


$8,900


$8,713


$8,438


$7,777

 
 
 
 
 
 
Total average assets

$3,044,764


$3,045,203


$3,017,167


$3,037,270


$2,983,648

Less:
 
 
 
 
 
Average goodwill
58,114

58,114

58,114

58,114

58,114

Average identifiable intangible assets, net
6,257

6,434

6,619

6,805

7,025

Total average tangible assets

$2,980,393


$2,980,655


$2,952,434


$2,972,351


$2,918,509

 
 
 
 
 
 
Return on average assets - GAAP
1.19
%
1.17
%
1.16
%
1.11
%
1.04
%
Return on average tangible assets - Non-GAAP
1.21
%
1.19
%
1.18
%
1.14
%
1.07
%
 
 
 
 
 
 
Calculation of Return on Average Tangible Equity:
 
 
 
 
 
Net income

$9,023


$8,900


$8,713


$8,438


$7,777

 
 
 
 
 
 
Total average shareholders' equity

$300,430


$296,150


$290,854


$284,801


$285,707

Less:
 
 
 
 
 
Average goodwill
58,114

58,114

58,114

58,114

58,114

Average identifiable intangible assets, net
6,257

6,434

6,619

6,805

7,025

Total average tangible shareholders' equity

$236,059


$231,602


$226,121


$219,882


$220,568

 
 
 
 
 
 
Return on average shareholders' equity - GAAP
12.01
%
12.02
%
11.98
%
11.85
%
10.89
%
Return on average tangible shareholders' equity - Non-GAAP
15.29
%
15.37
%
15.41
%
15.35
%
14.10
%






Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
 
Twelve Months Ended
(Dollars in thousands)
Dec 31,
2012
Dec 31,
2011
Calculation of Return on Average Tangible Assets:
 
 
Net income

$35,074


$29,724

 
 
 
Total average assets

$3,036,149


$2,927,168

Less:
 
 
Average goodwill
58,114

58,114

Average identifiable intangible assets, net
6,528

7,374

Total average tangible assets

$2,971,507


$2,861,680

 
 
 
Return on average assets - GAAP
1.16
%
1.02
%
Return on average tangible assets - Non-GAAP
1.18
%
1.04
%
 
 
 
 
 
 
Calculation of Return on Average Tangible Equity:
 
 
Net income

$35,074


$29,724

 
 
 
Total average shareholders' equity

$293,087


$280,107

Less:
 
 
Average goodwill
58,114

58,114

Average identifiable intangible assets, net
6,528

7,374

Total average tangible shareholders' equity

$228,445


$214,619

 
 
 
Return on average shareholders' equity - GAAP
11.97
%
10.61
%
Return on average tangible shareholders' equity - Non-GAAP
15.35
%
13.85
%