WESTERLY, R.I., Jan. 26, 2016 (GLOBE NEWSWIRE) -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $10.7 million, or 62 cents per diluted share, for the fourth quarter of 2015.  Net income was up by 5% from the $10.2 million, or 60 cents per diluted share, reported for the third quarter of 2015. 

For the year ended December 31, 2015, net income totaled $43.5 million, or $2.54 per diluted share.  Full-year net income increased by 6%, from the $40.8 million, or $2.41 per diluted share, reported for 2014.  Returns on average equity and average assets in 2015 were 12.00% and 1.19%, respectively, compared to 11.87% and 1.23%, respectively, for the same period in 2014.

"Washington Trust marked its 215^th year of service on a positive note, as solid fourth quarter results led to all-time record earnings for 2015," stated Joseph J. MarcAurele, Washington Trust Chairman and CEO.  "Our 2015 performance once again reflects Washington Trust’s ability to achieve continued growth and profitability in a challenging and competitive environment."

Selected highlights for the fourth quarter of 2015 include:

• Total loans rose by 2.1%, led by a solid increase of $75 million, or 4.7%, in commercial loan balances.  Total loans rose by $154 million, or 5.4% in the year 2015.
• Total deposits grew by $98 million, or 3.5%, in the quarter, including a $77 million, or 8.8%, increase in demand and NOW deposits.  Total deposit growth for the year 2015 amounted to $179 million, or 6.5%.

Net Interest Income

Net interest income totaled $26.3 million for the fourth quarter of 2015, up by $258 thousand from the third quarter of 2015.   The net interest margin was 3.08% for the fourth quarter of 2015, up 1 basis point from the previous quarter.  Changes compared to the third quarter included:

• Average interest-earning assets increased by $22 million, reflecting growth in average balances of commercial loans and investment securities.  The yield on interest-earning assets was 3.68% for the fourth quarter, compared to 3.70% in the third quarter.
• Average interest-bearing liabilities rose by $11 million, reflecting growth in average in-market interest-bearing deposits, partially offset by a decrease in wholesale funding balances.  The cost of funds was reduced by 5 basis points from the previous quarter.

Noninterest Income

Noninterest income totaled $15.1 million for the fourth quarter of 2015, up by $1.2 million, or 9%, from the third quarter of 2015.  Significant linked quarter changes included:

• Wealth management revenues totaled $9.2 million for the fourth quarter, up by $265 thousand, or 3%, from the previous quarter.  Wealth management assets under administration amounted to $5.8 billion at December 31, 2015, up by $130 million, or 2%, in the fourth quarter, largely due to financial market appreciation following declines in the previous quarter.  Managed assets represented approximately 93% of total wealth management assets at December 31, 2015.
  
  Total wealth management revenues in 2015 amounted to $35.4 million, an all-time high level for Washington Trust.

• Mortgage banking revenues, including gains and commissions on loan sales and mortgage servicing fee income, totaled $2.6 million for the fourth quarter, up by $592 thousand, or 30%, on a linked quarter basis, reflecting a higher yield on loan sales sold to the secondary market.  Residential mortgage loans sold to the secondary market amounted to $127.4 million in the fourth quarter, compared to $132.4 million in the previous quarter.
  
  Total mortgage banking revenues for the year 2015 amounted to $9.9 million, up $2.7 million, or 38%, over the prior year.

• Loan related derivative income amounted to $752 thousand in the fourth quarter, up by $425 thousand from the prior quarter.

Noninterest Expenses

Noninterest expenses totaled $24.6 million for the fourth quarter of 2015, compared to $24.5 million for the third quarter of 2015.  Included in noninterest expenses were costs associated with the third quarter acquisition of Halsey Associates, Inc. amounting to $52 thousand in the fourth quarter and $504 thousand in the third quarter.  Excluding the acquisition related expenses, noninterest expenses rose by $475 thousand, or 2%, on a linked quarter basis.  This included an increase of $195 thousand in legal, audit and professional fees, primarily associated with non-routine matters.

Income tax expense amounted to $5.3 million for the fourth quarter of 2015, up by $382 thousand from the amount recognized in the previous quarter.  The effective tax rate for the fourth quarter of 2015 was 33.2%, compared to 32.7% for the third quarter of 2015.  Based on the current federal and applicable state income tax statutes, the Corporation currently expects the 2016 effective tax rate will be approximately 33.0%.

Loans

Total loans amounted to $3.0 billion at December 31, 2015, up by $63 million, or 2.1%, from the balance at the end of the third quarter and up by $154 million, or 5.4%, during the last twelve months.  Significant changes included:

• Total commercial loans increased by $75 million, or 4.7%, in the quarter, including growth of $59 million in commercial real estate and construction loans and $16 million in commercial and industrial loans.  Total commercial loans were up by $119 million, or 7.8%, in 2015.
• The residential real estate loan portfolio declined by $11 million, or 1.0%, in the quarter.  The residential portfolio grew by $28 million, or 2.9%, in the last twelve months.
• Consumer loans decreased modestly in the fourth quarter.  Total consumer portfolio balances increased by $7 million, or 2.0%, during 2015.

Investment Securities

The securities portfolio amounted to $395 million at December 31, 2015, up by $50 million, or 14.5%, from the balance at September 30, 2015 and up by $12 million, or 3.2%, from a year ago.  The increase reflects purchases of government agency and agency mortgage-backed debt securities, partially offset by calls of securities and routine principal pay-downs on mortgage-backed securities.

Deposits and Borrowings

Total deposits amounted to $2.9 billion at December 31, 2015, up by $98 million, or 3.5%, in the fourth quarter and up by $179 million, or 6.5%, in the last twelve months.  Excluding wholesale brokered time deposits, in-market deposits increased by $63 million, or 2.5%, in the quarter and by $176 million, or 7.2%, from a year ago.  Deposit growth was led by significant increases in the combined amounts of demand and NOW accounts, which rose by $77 million, or 8.8%, in the fourth quarter and $164 million, or 20.8%, in the last twelve months.

FHLBB advances amounted to $379 million at December 31, 2015, down by $3 million, from September 30, 2015 and down by $27 million from December 31, 2014.

Asset Quality

Total past due loans amounted to $18 million, or 0.58% of total loans, at December 31, 2015, down from $22 million, or 0.74% of total loans, at September 30, 2015.  Total nonaccrual loans amounted to $21 million, or 0.70% of total loans, at December 31, 2015, compared to $17 million, or 0.57%, at September 30, 2015.  The increase in nonaccrual loans reflects the classification into nonaccrual status of two commercial loans with a carrying value of $2.9 million.

A loan loss provision totaling $750 thousand was charged to earnings in the fourth quarter of 2015, compared to a loan loss provision of $200 thousand recognized in the third quarter of 2015.  The increase in the quarterly provision was largely attributable to loan portfolio growth and changes in specific loss allocations on nonaccrual loans.  Net charge-offs amounted to $842 thousand in the fourth quarter of 2015, compared to $626 thousand in the third quarter of 2015.  The allowance for loan losses was $27.1 million, or 0.90% of total loans, at December 31, 2015, compared to $27.2 million, or 0.92% of total loans, at September 30, 2015.  Net charge-offs for the year 2015 amounted to $2.0 million, or 0.07% of total average loans, compared to $1.7 million, or 0.07%, for the year 2014.

Capital and Dividends

Total shareholder's equity was $375 million at December 31, 2015, up by $5 million from September 30, 2015.  Capital levels at December 31, 2015 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.58% at December 31, 2015, compared to 12.80% at September 30, 2015.

The Board of Directors declared a quarterly dividend of 34 cents per share for the quarter ended December 31, 2015.  The dividend was paid on January 14, 2016 to shareholders of record on January 4, 2016.

Conference Call

Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Wednesday, January 27, 2016 at 8:30 a.m. (Eastern Time).  Individuals may dial in to the call at 1-877-407-0784.  An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-870-5176 and entering the Replay PIN Number 13627947; the audio replay will be available through February 6, 2016.  Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrustbancorp.com, and will be available through March 31, 2016.

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 NASDAQ OMX® under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrustbancorp.com.

Forward-Looking Statements

This press release contains statements that are “forward-looking statements”.  We may also make forward-looking statements in other documents we file with the SEC, 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: weakness in national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; additional 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 our competition; changes in legislation or regulation and accounting principles, policies and guidelines; the ability to fully realize the expected cost savings and revenues from the Halsey acquisition; 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, 2014, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, 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 report, and we assume 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,  2015						Dec 31,  2014
Assets:
Cash and due from banks								$	93,222					$	76,386
Short-term investments									4,409						3,964
Mortgage loans held for sale (including $33,969 in 2015 and $30,321 in 2014 measured at fair value)									38,554						45,693
Securities:
Available for sale, at fair value									375,044						357,662
Held to maturity, at amortized cost (fair value $20,516 in 2015 and $26,008 in 2014)									20,023						25,222
Total securities									395,067						382,884
Federal Home Loan Bank stock, at cost									24,316						37,730
Loans:
Commercial									1,654,547						1,535,488
Residential real estate									1,013,555						985,415
Consumer									345,025						338,373
Total loans									3,013,127						2,859,276
Less allowance for loan losses									27,069						28,023
Net loans									2,986,058						2,831,253
Premises and equipment, net									29,593						27,495
Investment in bank-owned life insurance									65,501						63,519
Goodwill									64,059						58,114
Identifiable intangible assets, net									11,460						4,849
Other assets									59,365						54,987
Total assets								$	3,771,604					$	3,586,874
Liabilities:
Deposits:
Demand deposits								$	537,298					$	459,852
NOW accounts									412,602						326,375
Money market accounts									823,490						802,764
Savings accounts									326,967						291,725
Time deposits									833,898						874,102
Total deposits									2,934,255						2,754,818
Federal Home Loan Bank advances									378,973						406,297
Junior subordinated debentures									22,681						22,681
Other liabilities									60,307						56,799
Total liabilities									3,396,216						3,240,595
Shareholders’ Equity:
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 17,019,578 shares in 2015 and 16,746,363 shares in 2014									1,064						1,047
Paid-in capital									110,949						101,204
Retained earnings									273,074						252,837
Accumulated other comprehensive loss									(9,699		)				(8,809		)
Total shareholders’ equity									375,388						346,279
Total liabilities and shareholders’ equity								$	3,771,604					$	3,586,874

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 30,														2015									2014						2015									2014
Interest income:
Interest and fees on loans														$	28,511								$	28,845					$	114,229								$	107,842
Interest on securities:													Taxable		2,262									2,399						8,875									10,437
													Nontaxable		352									491						1,555									2,149
Dividends on Federal Home Loan Bank stock															315									141						953									561
Other interest income															37									29						138									128
Total interest and dividend income															31,477									31,905						125,750									121,117
Interest expense:
Deposits															3,097									3,531						13,142									12,937
Federal Home Loan Bank advances															1,966									1,867						7,746									7,698
Junior subordinated debentures															157									241						871									964
Other interest expense															2									3						9									13
Total interest expense															5,222									5,642						21,768									21,612
Net interest income															26,255									26,263						103,982									99,505
Provision for loan losses															750									500						1,050									1,850
Net interest income after provision for loan losses															25,505									25,763						102,932									97,655
Noninterest income:
Wealth management revenues															9,167									8,409						35,416									33,378
Merchant processing fees															—									—						—									1,291
Mortgage banking revenues (1)															2,582									2,196						9,901									7,152
Service charges on deposit accounts															971									936						3,865									3,395
Card interchange fees															810									793						3,199									3,057
Income from bank-owned life insurance															502									492						1,982									1,846
Loan related derivative income															752									574						2,441									1,136
Equity in earnings (losses) of unconsolidated subsidiaries															(69					)				(63		)				(293					)				(276		)
Gain on sale of business line															—									—						—									6,265
Other income (1)															431									369						1,829									1,771
Total noninterest income															15,146									13,706						58,340									59,015
Noninterest expense:
Salaries and employee benefits															16,053									14,685						63,024									58,530
Net occupancy															1,724									1,640						7,000									6,312
Equipment															1,393									1,221						5,533									4,903
Merchant processing costs															—									—						—									1,050
Outsourced services															1,337									1,286						5,111									4,483
Legal, audit and professional fees															825									626						2,741									2,336
FDIC deposit insurance costs															470									467						1,846									1,762
Advertising and promotion															325									406						1,526									1,546
Amortization of intangibles															333									155						904									644
Debt prepayment penalties															—									—						—									6,294
Acquisition related expenses															52									—						989									—
Other expenses															2,049									2,574						8,255									8,987
Total noninterest expense															24,561									23,060						96,929									96,847
Income before income taxes															16,090									16,409						64,343									59,823
Income tax expense															5,346									5,218						20,878									18,999
Net income														$	10,744								$	11,191					$	43,465								$	40,824
Weighted average common shares outstanding - basic															17,004									16,735						16,879									16,689
Weighted average common shares outstanding - diluted															17,167									16,911						17,067									16,872
Per share information:													Basic earnings per common share	$	0.63								$	0.67					$	2.57								$	2.44
													Diluted earnings per common share	$	0.62								$	0.66					$	2.54								$	2.41
													Cash dividends declared per share	$	0.34								$	0.32					$	1.36								$	1.22
(1) Mortgage banking revenues include gains and commissions on loan sales and mortgage servicing fee income.  Previously, mortgage servicing fee income was included in Other income.  Prior period amounts have been reclassified to conform to current period presentation.

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,  2015																		Sep 30,  2015						Jun 30,  2015						Mar 31,  2015						Dec 31,  2014
Financial Data:
Total assets															$	3,771,604																	$	3,674,836					$	3,644,477					$	3,602,514					$	3,586,874
Total loans																3,013,127																		2,949,918						2,928,584						2,880,592						2,859,276
Total securities																395,067																		344,935						373,901						364,967						382,884
Total deposits																2,934,255																		2,836,280						2,739,119						2,783,143						2,754,818
Total shareholders' equity																375,388																		370,527						359,167						353,879						346,279
Net interest income																26,255																		25,997						26,028						25,702						26,263
Provision for loan losses																750																		200						100						—						500
Noninterest income																15,146																		13,913						15,261						14,020						13,706
Noninterest expense																24,561																		24,538						24,299						23,531						23,060
Income tax expense																5,346																		4,964						5,387						5,181						5,218
Net income																10,744																		10,208						11,503						11,010						11,191
Share Data:
Basic earnings per common share															$	0.63																	$	0.60					$	0.68					$	0.65					$	0.67
Diluted earnings per common share															$	0.62																	$	0.60					$	0.68					$	0.65					$	0.66
Dividends declared per share															$	0.34																	$	0.34					$	0.34					$	0.34					$	0.32
Book value per share															$	22.06																	$	21.82					$	21.34					$	21.10					$	20.68
Tangible book value per share - Non-GAAP (1)															$	17.62																	$	17.36					$	17.61					$	17.35					$	16.92
Market value per share															$	39.52																	$	38.45					$	39.48					$	38.19					$	40.18
Shares outstanding at end of period																17,020																		16,985						16,834						16,773						16,746
Weighted average common shares outstanding - basic																17,004																		16,939						16,811						16,759						16,735
Weighted average common shares outstanding - diluted																17,167																		17,102						16,989						16,939						16,911
Key Ratios:
Return on average assets																1.16															%			1.11			%			1.27			%			1.23			%			1.27			%
Return on average tangible assets - Non-GAAP (1)																1.19															%			1.13			%			1.29			%			1.25			%			1.29			%
Return on average equity																11.52															%			11.13			%			12.88			%			12.54			%			12.68			%
Return on average tangible equity - Non-GAAP (1)																14.45															%			13.82			%			15.62			%			15.27			%			15.44			%
Tier 1 risk-based capital															11.64% (i)																			11.83			%			11.79			%			11.78			%			11.52			%
Total risk-based capital															12.58% (i)																			12.80			%			12.78			%			12.80			%			12.56			%
Tier 1 leverage ratio															9.37% (i)																			9.26			%			9.31			%			9.21			%			9.14			%
Tier 1 common equity (2)															10.89% (i)																			11.05			%			11.00			%			10.98			%			N/A
Equity to assets																9.95															%			10.08			%			9.86			%			9.82			%			9.65			%
Tangible equity to tangible assets - Non-GAAP (1)																8.11															%			8.18			%			8.28			%			8.22			%			8.04			%
(i) - estimated
Wealth Management Revenues:
Trust and investment management fees															$	8,001																	$	7,768					$	7,238					$	7,142					$	7,059
Mutual fund fees																952																		989						1,032						1,036						1,068
Asset-based revenues																8,953																		8,757						8,270						8,178						8,127
Transaction-based revenues																214																		145						642						257						282
Total wealth management revenues															$	9,167																	$	8,902					$	8,912					$	8,435					$	8,409
Wealth Management Assets Under Administration:
Balance at beginning of period															$	5,714,201																	$	5,211,548					$	5,159,663					$	5,069,966					$	4,983,464
Acquisition of Halsey Associates, Inc. (Aug. 1, 2015)																—																		839,994						—						—						—
Net investment appreciation (depreciation) & income																153,953																		(316,121		)				(13,932		)				80,872						111,715
Net client cash flows																(23,518														)				(21,220		)				65,817		)				8,825						(25,213		)
Balance at end of period															$	5,844,636																	$	5,714,201					$	5,211,548					$	5,159,663					$	5,069,966
(1) See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
(2) New capital ratio effective January 1, 2015 under the Basel III capital requirements.

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
						Twelve Months Ended
(Dollars in thousands)						Dec 31,  2015									Dec 31,  2014
Key Ratios:
Return on average assets							1.19					%				1.23		%
Return on average tangible assets - Non-GAAP (1)							1.21					%				1.25		%
Return on average equity							12.00					%				11.87		%
Return on average tangible equity - Non-GAAP (1)							14.79					%				14.55		%
Allowance for Loan Losses:
Balance at beginning of period						$	28,023								$	27,886
Provision charged to earnings							1,050									1,850
Charge-offs							(2,305					)				(1,949		)
Recoveries							301									236
Balance at end of period						$	27,069								$	28,023
Net Loan Charge-Offs (Recoveries):
Commercial mortgages						$	717								$	953
Commercial & industrial							584									472
Residential real estate mortgages							179									81
Consumer							524									207
Total						$	2,004								$	1,713
Net charge-offs to average loans (annualized)							0.07					%				0.07		%
Wealth Management Revenues:
Trust and investment management fees						$	30,149								$	27,554
Mutual fund fees							4,009									4,335
Asset-based revenues							34,158									31,889
Transaction-based revenues							1,258									1,489
Total wealth management revenues						$	35,416								$	33,378
Wealth Management Assets Under Administration:
Balance at beginning of period						$	5,069,966								$	4,781,958
Acquisition of Halsey Associates, Inc. (Aug. 1, 2015)							839,994									—
Net investment appreciation & income							(95,228					)				258,120
Net client cash flows							29,904									29,888
Balance at end of period						$	5,844,636								$	5,069,966
(1) 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,  2015																Sep 30,  2015				Jun 30,  2015				Mar 31,  2015				Dec 31,  2014
Average Yield / Rate (taxable equivalent basis):
Assets:
Commercial loans															3.82														%		3.91		%		4.06		%		4.02		%		4.23		%
Residential real estate loans, including mortgage loans held for sale															3.91														%		3.90		%		3.95		%		4.06		%		4.06		%
Consumer loans															3.74														%		3.79		%		3.77		%		3.82		%		3.79		%
Total loans															3.84														%		3.89		%		3.99		%		4.01		%		4.12		%
Cash, federal funds sold and other short-term investments															0.20														%		0.21		%		0.18		%		0.20		%		0.18		%
FHLBB stock															5.14														%		3.25		%		1.74		%		1.77		%		1.48		%
Taxable debt securities															2.63														%		2.73		%		2.72		%		2.84		%		2.83		%
Nontaxable debt securities															6.10														%		5.95		%		6.15		%		6.03		%		5.87		%
Total securities															2.96														%		3.08		%		3.11		%		3.23		%		3.22		%
Total interest-earning assets															3.68														%		3.70		%		3.80		%		3.84		%		3.91		%
Liabilities:
Interest-bearing demand deposits															0.10														%		0.07		%		0.03		%		0.09		%		—		%
NOW accounts															0.06														%		0.06		%		0.06		%		0.06		%		0.06		%
Money market accounts															0.33														%		0.46		%		0.46		%		0.45		%		0.43		%
Savings accounts															0.06														%		0.07		%		0.07		%		0.06		%		0.06		%
Time deposits (in-market)															0.99														%		0.98		%		1.00		%		1.05		%		1.14		%
Wholesale brokered time deposits															1.35														%		1.29		%		1.28		%		1.29		%		1.23		%
FHLBB advances															2.09														%		1.85		%		1.94		%		1.91		%		2.28		%
Junior subordinated debentures															2.75														%		4.06		%		4.26		%		4.31		%		4.22		%
Other															8.62														%		7.63		%		6.92		%		9.51		%		8.50		%
Total interest-bearing liabilities															0.74														%		0.79		%		0.79		%		0.82		%		0.84		%
Interest rate spread (taxable equivalent basis)															2.94														%		2.91		%		3.01		%		3.02		%		3.07		%
Net interest margin (taxable equivalent basis)															3.08														%		3.07		%		3.15		%		3.18		%		3.23		%

		At December 31, 2015
		Amortized															Unrealized						Unrealized						Fair
(Dollars in thousands)		Cost															Gains						Losses						Value
Securities Available for Sale:
Obligations of U.S. government-sponsored enterprises		$	77,330														$	73					$	(388		)			$	77,015
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises			228,908															6,398						(450		)				234,856
Obligations of states and political subdivisions			35,353															727						—						36,080
Individual name issuer trust preferred debt securities			29,815															—						(4,677		)				25,138
Corporate bonds			1,970															5						(20		)				1,955
Total securities available for sale			373,376															7,203						(5,535		)				375,044
Held to Maturity:
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises			20,023															493						—						20,516
Total securities held to maturity			20,023															493						—						20,516
Total securities		$	393,399														$	7,696					$	(5,535		)			$	395,560

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
																	Period End Balances At
(Dollars in thousands)																	Dec 31,  2015																		Sep 30,  2015						Jun 30,  2015						Mar 31,  2015						Dec 31,  2014
Loans:
Commercial:																Mortgages	$	931,953																	$	873,767					$	876,589					$	865,042					$	843,978
																Construction & development		122,297																		121,857						110,989						89,851						79,592
																Commercial & industrial		600,297																		584,230						595,959						604,630						611,918
																Total commercial		1,654,547																		1,579,854						1,583,537						1,559,523						1,535,488
Residential real estate:																Mortgages		984,437																		994,808						971,705						954,905						948,731
																Homeowner construction		29,118																		29,406						29,558						32,659						36,684
																Total residential real estate		1,013,555																		1,024,214						1,001,263						987,564						985,415
Consumer:																Home equity lines		255,565																		252,862						249,845						239,537						242,480
																Home equity loans		46,649																		47,610						47,437						46,727						46,967
																Other		42,811																		45,378						46,502						47,241						48,926
																Total consumer		345,025																		345,850						343,784						333,505						338,373
																Total loans	$	3,013,127																	$	2,949,918					$	2,928,584					$	2,880,592					$	2,859,276

	At December 31, 2015
(Dollars in thousands)	Balance									% of Total
Commercial Real Estate Loans by Property Location:
Rhode Island, Connecticut, Massachusetts	$	959,883									91.0			%
New York, New Jersey, Pennsylvania		80,989									7.7			%
New Hampshire		13,377									1.3			%
Total commercial real estate loans (1)	$	1,054,249									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, 2015
(Dollars in thousands)	Balance									% of Total
Residential Mortgages by Property Location:
Rhode Island, Connecticut, Massachusetts	$	995,743								98.2		%
New Hampshire		10,186								1.0		%
New York, Virginia, New Jersey, Maryland, Pennsylvania		4,163								0.4		%
Ohio		1,557								0.2		%
Other		1,906								0.2		%
Total residential mortgages	$	1,013,555								100.0		%

		Period End Balances At
(Dollars in thousands)		Dec 31,  2015																		Sep 30,  2015						Jun 30,  2015						Mar 31,  2015						Dec 31,  2014
Deposits:
Demand deposits		$	537,298																	$	513,856					$	457,755					$	477,046					$	459,852
NOW accounts			412,602																		358,973						357,922						333,321						326,375
Money market accounts			823,490																		855,858						789,334						821,353						802,764
Savings accounts			326,967																		305,775						300,108						298,802						291,725
Time deposits			833,898																		801,818						834,000						852,621						874,102
Total deposits		$	2,934,255																	$	2,836,280					$	2,739,119					$	2,783,143					$	2,754,818
Out-of-market brokered certificates of deposits included in time deposits		$	302,479																	$	267,552					$	284,590					$	290,863					$	299,129
In-market deposits, excluding out-of-market brokered certificates of deposit		$	2,631,776																	$	2,568,728					$	2,454,529					$	2,492,280					$	2,455,689

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
															Period End Balances At
(Dollars in thousands)															Dec 31,  2015																		Sep 30,  2015						Jun 30,  2015						Mar 31,  2015						Dec 31,  2014
Asset Quality Ratios:
Total past due loans to total loans																0.58															%			0.74			%			0.82			%			0.66			%			0.63			%
Nonperforming assets to total assets																0.58															%			0.48			%			0.45			%			0.48			%			0.48			%
Nonaccrual loans to total loans																0.70															%			0.57			%			0.52			%			0.55			%			0.56			%
Allowance for loan losses to nonaccrual loans																128.61															%			161.25			%			182.32			%			175.29			%			175.75			%
Allowance for loan losses to total loans																0.90															%			0.92			%			0.94			%			0.97			%			0.98			%
Nonperforming Assets:
Commercial mortgages															$	5,711																	$	4,915					$	4,915					$	5,115					$	5,315
Commercial construction & development																—																		—						—						—						—
Commercial & industrial																3,018																		1,137						1,039						2,193						1,969
Residential real estate mortgages																10,666																		9,472						7,411						6,956						7,124
Consumer																1,652																		1,320						1,766						1,601						1,537
Total nonaccrual loans																21,047																		16,844						15,131						15,865						15,945
Nonaccrual investment securities																—																		—						—						—						—
Property acquired through foreclosure or repossession																716																		955						1,388						1,398						1,176
Total nonperforming assets															$	21,763																	$	17,799					$	16,519					$	17,263					$	17,121
Troubled Debt Restructured Loans:
Accruing troubled debt restructured loans:
Commercial mortgages															$	9,430																	$	10,637					$	9,448					$	9,448					$	9,676
Commercial & industrial																853																		2,069						2,209						881						954
Residential real estate mortgages																669																		674						679						684						1,252
Consumer																228																		232						201						134						135
Accruing troubled debt restructured loans																11,180																		13,612						12,537						11,147						12,017
Nonaccrual troubled debt restructured loans:
Commercial mortgages																5,296																		4,498						4,498						4,698						4,898
Commercial & industrial																1,371																		380						381						1,442						1,193
Residential real estate mortgages																596																		613						92						338						248
Consumer																—																		—						33						34						—
Nonaccrual troubled debt restructured loans																7,263																		5,491						5,004						6,512						6,339
Total troubled debt restructured loans															$	18,443																	$	19,103					$	17,541					$	17,659					$	18,356

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
															Period End Balances At
(Dollars in thousands)															Dec 31,  2015																		Sep 30,  2015						Jun 30,  2015						Mar 31,  2015						Dec 31,  2014
Past Due Loans:
Loans 30-59 Days Past Due:
Commercial mortgages															$	51																	$	147					$	14					$	497					$	—
Commercial & industrial																405																		162						2,581						229						2,136
Residential real estate mortgages																3,028																		3,610						5,120						4,470						2,943
Consumer loans																1,653																		899						1,634						1,512						954
Loans 30-59 days past due															$	5,137																	$	4,818					$	9,349					$	6,708					$	6,033
Loans 60-89 Days Past Due:
Commercial mortgages															$	—																	$	—					$	—					$	61					$	—
Commercial & industrial																9																		3,455						2,299						229						1,202
Residential real estate mortgages																2,964																		2,458						913						1,352						821
Consumer loans																863																		338						397						565						345
Loans 60-89 days past due															$	3,836																	$	6,251					$	3,609					$	2,207					$	2,368
Loans 90 Days or More Past Due:
Commercial mortgages															$	4,504																	$	4,915					$	4,915					$	5,115					$	5,315
Commercial & industrial																48																		720						638						721						181
Residential real estate mortgages																3,294																		4,499						4,871						3,607						3,284
Consumer loans																740																		608						647						723						897
Loans 90 days or more past due															$	8,586																	$	10,742					$	11,071					$	10,166					$	9,677
Total Past Due Loans:
Commercial mortgages															$	4,555																	$	5,062					$	4,929					$	5,673					$	5,315
Commercial & industrial																462																		4,337						5,518						1,179						3,519
Residential real estate mortgages																9,286																		10,567						10,904						9,429						7,048
Consumer loans																3,256																		1,845						2,678						2,800						2,196
Total past due loans															$	17,559																	$	21,811					$	24,029					$	19,081					$	18,078
Accruing loans 90 days or more past due															$	—																	$	—					$	—					$	—					$	—
Nonaccrual loans included in past due loans															$	13,635																	$	13,964					$	12,397					$	12,314					$	12,721

	For the Quarters Ended
(Dollars in thousands)	Dec 31,  2015																		Sep 30,  2015						Jun 30,  2015						Mar 31,  2015						Dec 31,  2014
Allowance for Loan Losses:
Balance at beginning of period	$	27,161																	$	27,587					$	27,810					$	28,023					$		27,768
Provision charged to earnings		750																		200						100						—							500
Charge-offs		(904														)				(725		)				(355		)				(321		)					(311		)
Recoveries		62																		99						32						108							66
Balance at end of period	$	27,069																	$	27,161					$	27,587					$	27,810					$		28,023
Net Loan Charge-Offs (Recoveries):
Commercial mortgages	$	405																	$	(4		)			$	196					$	120					$		(5		)
Commercial & industrial		217																		348						26						(7		)					144
Residential real estate mortgages		117																		12						4						46							45
Consumer		103																		270						97						54							61
Total	$	842																	$	626					$	323					$	213					$		245

 

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, 2015														September 30, 2015														December 31, 2014
		Average Balance					Interest					Yield/ Rate				Average Balance					Interest					Yield/ Rate				Average Balance					Interest					Yield/  Rate
(Dollars in thousands)
Assets:
Commercial loans		$	1,601,794				$	15,411				3.82		%		$	1,571,645				$	15,475				3.91		%		$	1,470,360				$	15,688				4.23		%
Residential real estate loans, including loans held for sale			1,049,007					10,338				3.91		%			1,050,949					10,329				3.90		%			1,009,382					10,329				4.06		%
Consumer loans			344,690					3,251				3.74		%			343,603					3,283				3.79		%			338,050					3,231				3.79		%
Total loans			2,995,491					29,000				3.84		%			2,966,197					29,087				3.89		%			2,817,792					29,248				4.12		%
Cash, federal funds sold and short-term investments			72,031					37				0.20		%			89,280					47				0.21		%			63,736					29				0.18		%
FHLBB stock			24,316					315				5.14		%			37,730					309				3.25		%			37,730					141				1.48		%
Taxable debt securities			341,130					2,262				2.63		%			316,214					2,178				2.73		%			336,661					2,399				2.83		%
Nontaxable debt securities			35,799					550				6.10		%			37,780					567				5.95		%			50,505					747				5.87		%
Total securities			376,929					2,812				2.96		%			353,994					2,745				3.08		%			387,166					3,146				3.22		%
Total interest-earning assets			3,468,767					32,164				3.68		%			3,447,201					32,188				3.70		%			3,306,424					32,564				3.91		%
Noninterest-earning assets			231,674														231,286														215,079
Total assets		$	3,700,441													$	3,678,487													$	3,521,503
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits		$	42,324				$	11				0.10		%		$	30,392				$	5				0.07		%		$	19,163				$	—				—		%
NOW accounts			376,185					56				0.06		%			357,128					53				0.06		%			320,313					49				0.06		%
Money market accounts			856,405					707				0.33		%			820,597					951				0.46		%			829,472					903				0.43		%
Savings accounts			310,608					47				0.06		%			303,587					52				0.07		%			291,683					45				0.06		%
Time deposits (in-market)			533,224					1,333				0.99		%			541,486					1,338				0.98		%			602,005					1,735				1.14		%
Wholesale brokered time deposits			277,681					943				1.35		%			279,839					909				1.29		%			257,415					799				1.23		%
FHLBB advances			373,652					1,966				2.09		%			425,931					1,987				1.85		%			325,518					1,867				2.28		%
Junior subordinated debentures			22,681					157				2.75		%			22,681					232				4.06		%			22,681					241				4.22		%
Other			92					2				8.62		%			104					2				7.63		%			140					3				8.50		%
Total interest-bearing liabilities			2,792,852					5,222				0.74		%			2,781,745					5,529				0.79		%			2,668,390					5,642				0.84		%
Demand deposits			475,215														477,393														458,782
Other liabilities			59,177														52,625														41,415
Shareholders' equity			373,197														366,724														352,916
Total liabilities and shareholders' equity		$	3,700,441													$	3,678,487													$	3,521,503
Net interest income (FTE)							$	26,942													$	26,659													$	26,922
Interest rate spread												2.94		%												2.91		%												3.07		%
Net interest margin												3.08		%												3.07		%												3.23		%
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

 

(Dollars in thousands)	Three Months Ended
	Dec 31, 2015												Sep 30, 2015						Dec 31, 2014
Commercial loans	$	489											$	461					$	403
Nontaxable debt securities		198												201						256
Total	$	687											$	662					$	659

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
																Twelve Months Ended
																December 31, 2015																									December 31, 2014
																Average Balance																Interest					Yield/ Rate				Average Balance									Interest					Yield/  Rate
(Dollars in thousands)
Assets:
Commercial loans																$	1,573,238															$	62,128				3.95		%		$	1,382,036								$	59,421				4.30		%
Residential real estate loans, including loans held for sale																	1,038,836																41,083				3.95		%			904,556									37,033				4.09		%
Consumer loans																	340,889																12,885				3.78		%			334,368									12,758				3.82		%
Total loans																	2,952,963																116,096				3.93		%			2,620,960									109,212				4.17		%
Cash, federal funds sold and short-term investments																	69,169																138				0.20		%			65,045									128				0.20		%
FHLBB stock																	34,349																953				2.77		%			37,730									561				1.49		%
Taxable debt securities																	325,166																8,875				2.73		%			331,514									10,437				3.15		%
Nontaxable debt securities																	39,751																2,408				6.06		%			55,283									3,267				5.91		%
Total securities																	364,917																11,283				3.09		%			386,797									13,704				3.54		%
Total interest-earning assets																	3,421,398																128,470				3.75		%			3,110,532									123,605				3.97		%
Noninterest-earning assets																	226,623																									210,746
Total assets																$	3,648,021																								$	3,321,278
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits																$	37,168															$	27				0.07		%		$	12,988								$	—				—		%
NOW accounts																	356,713																209				0.06		%			311,927									190				0.06		%
Money market accounts																	824,625																3,482				0.42		%			768,626									3,054				0.40		%
Savings accounts																	301,652																196				0.06		%			291,880									182				0.06		%
Time deposits (in-market)																	549,039																5,531				1.01		%			637,279									7,380				1.16		%
Wholesale brokered time deposits																	284,448																3,697				1.30		%			187,325									2,131				1.14		%
FHLBB advances																	398,866																7,746				1.94		%			274,879									7,698				2.80		%
Junior subordinated debentures																	22,681																871				3.84		%			22,681									964				4.25		%
Other																	110																9				8.18		%			157									13				8.28		%
Total interest-bearing liabilities																	2,775,302																21,768				0.78		%			2,507,742									21,612				0.86		%
Demand deposits																	458,369																									432,857
Other liabilities																	52,152																									36,868
Shareholders' equity																	362,198																									343,811
Total liabilities and shareholders' equity																$	3,648,021																								$	3,321,278
Net interest income (FTE)																																$	106,702																	$	101,993
Interest rate spread																																					2.97		%																3.11		%
Net interest margin																																					3.12		%																3.28		%

(Dollars in thousands)	Twelve Months Ended
	Dec 31, 2015									Dec 31, 2014
Commercial loans	$	1,867								$	1,370
Nontaxable debt securities		853									1,118
Total	$	2,720								$	2,488

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,  2015																		Sep 30,  2015						Jun 30,  2015						Mar 31,  2015						Dec 31,  2014
Calculation of Tangible Book Value per Share:
Total shareholders' equity at end of period															$	375,388																	$	370,527					$	359,167					$	353,879					$	346,279
Less:
Goodwill																64,059																		64,196						58,114						58,114						58,114
Identifiable intangible assets, net																11,460																		11,793						4,539						4,694						4,849
Total tangible shareholders' equity at end of period															$	299,869																	$	294,538					$	296,514					$	291,071					$	283,316
Shares outstanding at end of period																17,020																		16,985						16,834						16,773						16,746
Book value per share - GAAP															$	22.06																	$	21.82					$	21.34					$	21.10					$	20.68
Tangible book value per share - Non-GAAP															$	17.62																	$	17.34					$	17.61					$	17.35					$	16.92
Calculation of Tangible Equity to Tangible Assets:
Total tangible shareholders' equity at end of period															$	299,869																	$	294,538					$	296,514					$	291,071					$	283,316
Total assets at end of period															$	3,771,604																	$	3,674,836					$	3,644,477					$	3,602,514					$	3,586,874
Less:
Goodwill																64,059																		64,196						58,114						58,114						58,114
Identifiable intangible assets, net																11,460																		11,793						4,539						4,694						4,849
Total tangible assets at end of period															$	3,696,085																	$	3,598,847					$	3,581,824					$	3,539,706					$	3,523,911
Equity to assets - GAAP																9.95														%				10.08		%				9.86		%				9.82		%				9.65		%
Tangible equity to tangible assets - Non-GAAP																8.11														%				8.18		%				8.28		%				8.22		%				8.04		%
Calculation of Return on Average Tangible Assets:
Net income															$	10,744																	$	10,208					$	11,503					$	11,010					$	11,191
Total average assets															$	3,700,441																	$	3,678,487					$	3,622,715					$	3,588,881					$	3,521,503
Less:
Average goodwill																64,194																		62,524						58,114						58,114						58,114
Average identifiable intangible assets, net																11,616																		8,768						4,614						4,770						4,924
Total average tangible assets															$	3,624,631																	$	3,607,195					$	3,559,987					$	3,525,997					$	3,458,465
Return on average assets - GAAP																1.16														%				1.11		%				1.27		%				1.23		%				1.27		%
Return on average tangible assets - Non-GAAP																1.19														%				1.13		%				1.29		%				1.25		%				1.29		%
Calculation of Return on Average Tangible Equity:
Net income															$	10,744																	$	10,208					$	11,503					$	11,010					$	11,191
Total average shareholders' equity															$	373,197																	$	366,724					$	357,365					$	351,215					$	352,916
Less:
Average goodwill																64,194																		62,524						58,114						58,114						58,114
Average identifiable intangible assets, net																11,616																		8,768						4,614						4,770						4,924
Total average tangible shareholders' equity															$	297,387																	$	295,432					$	294,637					$	288,331					$	289,878
Return on average shareholders' equity - GAAP																11.52														%				11.13		%				12.88		%				12.54		%				12.68		%
Return on average tangible shareholders' equity - Non-GAAP																14.45														%				13.82		%				15.62		%				15.27		%				15.44		%

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
						Twelve Months Ended
(Dollars in thousands)						Dec 31,  2015									Dec 31,  2014
Calculation of Return on Average Tangible Assets:
Net income						$	43,465								$	40,824
Total average assets						$	3,648,021								$	3,321,278
Less:
Average goodwill							60,657									58,114
Average identifiable intangible assets, net							7,625									5,164
Total average tangible assets						$	3,579,739								$	3,258,000
Return on average assets - GAAP							1.19					%				1.23		%
Return on average tangible assets - Non-GAAP							1.21					%				1.25		%
Calculation of Return on Average Tangible Equity:
Net income						$	43,465								$	40,824
Total average shareholders' equity						$	362,198								$	343,811
Less:
Average goodwill							60,657									58,114
Average identifiable intangible assets, net							7,625									5,164
Total average tangible shareholders' equity						$	293,916								$	280,533
Return on average shareholders' equity - GAAP							12.00					%				11.87		%
Return on average tangible shareholders' equity - Non-GAAP							14.79					%				14.55		%

Contact:  Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone:  (401) 348-1309
E-mail:  ebeckel@washtrust.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.