PR Newswire | Oct 19, 2020 04:05PM EDT

10/19 15:05 CDT

Washington Trust Reports Third Quarter 2020 Earnings WESTERLY, R.I., Oct. 19, 2020

WESTERLY, R.I., Oct. 19, 2020 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced third quarter 2020 net income of $18.3 million, or $1.06 per diluted share, compared to net income of $21.0 million, or $1.21 per diluted share, reported for the second quarter of 2020.

"Washington Trust's third quarter results reflect our success at generating solid earnings during the most challenging of economic times," stated Edward O. Handy III, Chairman and Chief Executive Officer. "We had good performances across key business lines, led by strong mortgage banking activity, increases in wealth management assets under administration, and in-market deposit growth. As we move forward, we do so cautiously, but with confidence in our team, our business model and our strong financial foundation."

Selected financial highlights for the third quarter of 2020 include:

* Returns on average equity and average assets for the third quarter were 13.99% and 1.24%, respectively, compared to 16.51% and 1.46%, respectively, in the preceding quarter. * The provision for credit losses was $1.3 million in the third quarter, compared to $2.2 million in the preceding quarter. * Wealth management revenues were $9.0 million for the third quarter, up by $349 thousand, or 4%, from the preceding quarter. * Mortgage banking continued its strong performance in the third quarter with revenues totaling $12.4 million. Third quarter 2020 mortgage banking revenues were up by $7.5 million, or 155%, from the same period a year ago. * Residential mortgage loan origination activity amounted to an all-time quarterly high of $510 million in the third quarter of 2020, up by $83.6 million, or 20%, from the preceding quarter. Residential mortgage loan originations increased by $215 million, or 73%, from the same period a year ago. * Total loans amounted to $4.3 billion at September 30, 2020, essentially flat from the end of the preceding quarter. Total loans were up by $504 million, or 13%, from a year ago. * In-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.7 billion at September 30, 2020, up by $129 million, or 4%, from the end of the preceding quarter, and up by $546 million, or 17%, from a year ago.

Net Interest Income Net interest income was $31.7 million for the third quarter of 2020, up by $709 thousand, or 2%, from the second quarter of 2020. The net interest margin was 2.31% for the third quarter, unchanged from the preceding quarter.

Significant linked quarter changes included:

* Average interest-earning assets increased by $63 million, with an increase of $81 million in average loans, partially offset by a decrease of $19 million in average cash and short-term investments balances. The yield on interest-earning assets for the third quarter was 2.98%, down by 20 basis points from the preceding quarter, reflecting the impact of lower market interest rates. * Average interest-bearing liabilities decreased by $43 million, with a decrease of $126 million in average wholesale funding balances, partially offset by an increase of $83 million in average in-market deposits. Wholesale funding balances consist of wholesale brokered time deposits, Federal Home Loan Bank advances and Federal Reserve Payment Protection Program Lending Facility ("PPPLF") borrowings. The cost of interest-bearing liabilities for the third quarter of 2020 was 0.85%, down by 23 basis points from the preceding quarter, reflecting the impact of lower market interest rates. * Average noninterest-bearing demand deposit balances increased by $98 million from the preceding quarter.

Noninterest Income Noninterest income totaled $25.5 million for the third quarter of 2020, down by $852 thousand, or 3%, from the second quarter of 2020. Linked quarter changes included:

* Mortgage banking revenues totaled $12.4 million for the third quarter of 2020, down by $2.5 million, or 17%, from the record quarterly level in the second quarter of 2020, with a decline in unrealized gains partially offset by an increase in realized gains. Net realized gains increased on a linked quarter basis due to increased sales volume and sales yield on loans sold to the secondary market. Mortgage loans sold to the secondary market reached an all-time quarterly high of $354 million in the third quarter of 2020, up by $49 million, or 16%, from the preceding quarter. Net unrealized gains decreased on a linked quarter basis, reflecting a decrease in the mortgage pipeline and a corresponding decrease in the fair value of mortgage loan commitments as of September 30, 2020. * Wealth management revenues amounted to $9.0 million for the third quarter of 2020, up by $349 thousand, or 4%, on a linked quarter basis. This included an increase in asset-based revenues of $630 thousand, or 8%, partially offset by a decrease in transaction-based revenues of $281 thousand, or 63%. The decline in transaction-based revenues was mainly due to tax preparation fees, which are generally concentrated in the first half of the year. Wealth management assets under administration ("AUA") amounted to $6.4 billion at September 30, 2020, up by $257 million, or 4%, from June 30, 2020. The increase reflected net investment appreciation of $335 million, partially offset by net client asset outflows of $78 million in the third quarter of 2020. The average balance of AUA for the third quarter of 2020 increased by approximately $594 million, or 10%, from the average balance for the preceding quarter. * Loan related derivative income was $1.3 million in the third quarter of 2020, up by $1.2 million from the preceding quarter, reflecting a higher volume of commercial borrower interest rate swap transactions. * Income from bank-owned life insurance totaled $567 thousand in the third quarter of 2020, down by $224 thousand, or 28%, from the preceding quarter. Included in the second quarter was $229 thousand of non-taxable income due to the receipt of life insurance proceeds.

Noninterest ExpensesNoninterest expenses totaled $32.3 million for the third quarter of 2020, up by $3.9 million, or 14%, from the second quarter of 2020. Linked quarter changes included:

* Salaries and employee benefits expense, our largest noninterest expense, amounted to $21.9 million, up by $2.4 million, or 12%, from the preceding quarter. This was largely attributable to approximately $1 million of deferred labor (contra-expense) recognized in the second quarter associated with the Small Business Administration's Paycheck Protection Program ("PPP") loan originations in that quarter, as well as third quarter volume-related increases in mortgage originator commission expense and third quarter increases in performance-based compensation expense. * Legal, audit and professional fees were up by $593 thousand from the preceding quarter, reflecting increased costs associated with various legal and consulting matters. * Outsourced services expense was up by $376 thousand from the preceding quarter, largely due to volume-related increases in third party processing costs associated with customer loan related derivative transactions. * FDIC deposit insurance costs were down by $282 thousand from the preceding quarter, reflecting a decline in our assessment rate. * Other expenses were up by $413 thousand from the preceding quarter. Of this increase, $170 thousand resulted from the second quarter reversal of a contingency reserve.

Income Tax Income tax expense totaled $5.1 million for the third quarter of 2020, down by $416 thousand from the preceding quarter, largely due to a lower level of pre-tax income. The effective tax rate for the third quarter of 2020 was 21.9%, compared to 20.9% in the preceding quarter. Based on current federal and applicable state income tax statutes, the Corporation currently expects its fourth quarter effective tax rate to be 21.9% and its full-year 2020 effective tax rate to be approximately 21.5%.

Investment Securities The securities portfolio totaled $914 million at September 30, 2020, down by $25 million, or 3%, from June 30, 2020, reflecting routine pay-downs on mortgage-backed securities, calls of debt securities, as well as a temporary decrease in the fair value of available for sale securities. These decreases were partially offset by purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities. Third quarter 2020 purchases totaled $129 million, with a weighted average yield of 1.68%. Securities represented 16% of total assets at both September 30, 2020 and June 30, 2020.

LoansTotal loans stood at $4.3 billion at September 30, 2020, down by $6 million, or 0.1% from the end of the preceding quarter. Linked quarter changes included:

* Commercial loans increased by $5 million from June 30, 2020. * Residential real estate loans decreased by $1 million from June 30, 2020. * The consumer loan portfolio decreased by $9 million from the balance at June 30, 2020.

Washington Trust continues to work with and support our customers experiencing financial difficulty due to the COVID-19 pandemic. See the section labeled "Supplemental Loan Portfolio Information" in the accompanying tabular disclosures for information regarding loan deferments and PPP loans.

Deposits and BorrowingsTotal deposits amounted to $4.3 billion at September 30, 2020, up by $184 million, or 4%, from the end of the preceding quarter. Included in total deposits are out-of-market wholesale brokered time deposits, which increased by $56 million, or 11%, from June 30, 2020. Excluding wholesale brokered time deposits, in-market deposits at September 30, 2020 were up by $129 million, or 4%, from the end of the preceding quarter, reflecting seasonal inflows of various institutional and governmental depositors based on their underlying business cycles.

Federal Home Loan Bank advances totaled $714 million at September 30, 2020, down by $291 million from June 30, 2020.

As of September 30, 2020, the balance of PPPLF borrowings amounted to $106 million, up by $67 million from the balance at June 30, 2020.

Asset QualityNonperforming assets amounted to $14.7 million at September 30, 2020, down by $1.3 million from the end of the preceding quarter. Total nonaccrual loans amounted to $14.7 million, or 0.34% of total loans, at September 30, 2020, compared to $16.0 million, or 0.37% of total loans, at June 30, 2020. Total past due loans amounted to $10.4 million, or 0.24% of total loans, at September 30, 2020, compared to $14.7 million, or 0.34% of total loans, at June 30, 2020. The granting of loan payment deferments has not resulted in increased nonaccrual and past due loans, as these amounts do not reflect loans that have been modified as a result of the COVID-19 pandemic. Washington Trust actively monitors loan deferments and asset quality given the continued uncertainty regarding the impact of the COVID-19 pandemic on various industries and customer segments.

Total troubled debt restructured ("TDR") loans amounted to $8.6 million as of September 30, 2020, up by $2.1 million from June 30, 2020, due to loan payment deferments on residential and consumer loans that were delinquent before the pandemic and did not qualify for TDR accounting relief.

The allowance for credit losses ("ACL") on loans amounted to $42.6 million, or 1.00% of total loans, at September 30, 2020, compared to $41.4 million, or 0.97% of total loans, at June 30, 2020. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.2 million at September 30, 2020, essentially unchanged from the balance at June 30, 2020.

In the third quarter of 2020, a provision for credit losses of $1.3 million was charged to earnings, compared to $2.2 million in the preceding quarter. In the third quarter of 2020, net charge-offs of $96 thousand were recognized, compared to $308 thousand in the preceding quarter.

Capital and DividendsTotal shareholders' equity was $527.7 million at September 30, 2020, up by $7.5 million from June 30, 2020. This increase included net income of $18.3 million, which was partially offset by $8.9 million in dividend declarations and a decline of $2.9 million in the accumulated other comprehensive income component of shareholders' equity reflecting a temporary decline in the fair value of available for sale debt securities.

Capital levels at September 30, 2020 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.09% at September 30, 2020, compared to 12.78% at June 30, 2020.

Book value per share amounted to $30.57 at September 30, 2020, compared to $30.14 at June 30, 2020.

The Board of Directors declared a quarterly dividend of 51 cents per share for the quarter ended September 30, 2020. The dividend was paid on October 9, 2020 to shareholders of record on October 1, 2020.

Conference Call Washington Trust will host a conference call to discuss its third quarter results, business highlights and outlook on Tuesday, October 20, 2020 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-888-243-4451. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-344-7529 and entering the Replay PIN Number 10148833; the audio replay will be available through November 3, 2020. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, http://ir.washtrust.com, and will be available through December 31, 2020.

Background Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage 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 under the symbol WASH. Investor information is available on the Corporation's web site at http://ir.washtrust.com.

Forward-Looking StatementsThis 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 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 our control. These risks, uncertainties and other factors may cause our actual results, performance or achievements 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: the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in local, regional, national or international economic conditions or conditions affecting the banking or financial services industries, financial capital markets and the customers and communities we serve; changes in consumer behavior due to changing political, business and economic conditions, including increased unemployment, or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; volatility in national and international financial markets; 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 or outflows of wealth management assets under administration; decreases in the value of securities and other assets; reductions in loan demand; changes in loan collectibility, increases in defaults and charge-off rates; changes in the size and nature of our competition; changes in legislation or regulation and accounting principles, policies and guidelines; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; reputational risk relating to our participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; 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, 2019, 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 MeasuresIn 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

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; Dollars in thousands)



Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2020 2020 2020 2019 2019

Assets:

Cash and due from banks $204,113 $215,601 $178,678 $132,193 $141,768

Short-term investments 7,902 7,739 6,591 6,262 4,336

Mortgage loans held for sale, at fair value 68,095 43,997 49,751 27,833 44,657

Available for sale debt securities, at fair value913,850 938,446 917,392 899,490 887,020

Federal Home Loan Bank stock, at cost 37,469 50,017 53,576 50,853 45,030

Loans:

Total loans 4,282,047 4,287,641 4,090,396 3,892,999 3,778,106

Less: allowance for credit losses on loans 42,645 41,441 39,665 27,014 26,997

Net loans 4,239,402 4,246,200 4,050,731 3,865,985 3,751,109

Premises and equipment, net 27,711 28,067 28,543 28,700 29,293

Operating lease right-of-use assets 29,861 27,022 26,098 26,792 27,500

Investment in bank-owned life insurance 83,623 83,056 83,053 82,490 81,920

Goodwill 63,909 63,909 63,909 63,909 63,909

Identifiable intangible assets, net 6,530 6,759 6,988 7,218 7,448

Other assets 167,327 166,147 155,669 100,934 114,888

Total assets $5,849,792$5,876,960$5,620,979$5,292,659$5,198,878

Liabilities:

Deposits:

Noninterest-bearing deposits $840,444 $815,770 $622,893 $609,924 $619,839

Interest-bearing deposits 3,445,249 3,285,666 3,083,421 2,888,958 2,966,314

Total deposits 4,285,693 4,101,436 3,706,314 3,498,882 3,586,153

Federal Home Loan Bank advances 713,868 1,005,051 1,198,534 1,141,464 956,786

Payment Protection Program Lending Facility 105,746 38,900 - - -

Junior subordinated debentures 22,681 22,681 22,681 22,681 22,681

Operating lease liabilities 32,012 29,125 28,184 28,861 29,541

Other liabilities 162,099 159,604 156,669 97,279 105,892

Total liabilities 5,322,099 5,356,797 5,112,382 4,789,167 4,701,053

Shareholders' Equity:

Common stock 1,085 1,085 1,085 1,085 1,084

Paid-in capital 124,768 123,684 123,167 123,281 121,900

Retained earnings 408,773 399,386 387,243 390,363 383,765

Accumulated other comprehensive income (loss) (3,403) (462) 929 (11,237) (8,924)

Treasury stock, at cost (3,530) (3,530) (3,827) - -

Total shareholders' equity 527,693 520,163 508,597 503,492 497,825

Total liabilities and shareholders' equity $5,849,792$5,876,960$5,620,979$5,292,659$5,198,878

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; Dollars and shares in thousands, except per share amounts)



For the Three Months Ended For the Nine Months Ended

Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, 2020 2020 2020 2019 2019 2020 2019

Interest income:

Interest and fees on loans $34,925$36,005$40,008$40,079$41,558$110,938 $125,440

Interest on mortgage loans held for sale 468 440 285 359 410 1,193 878

Taxable interest on debt securities 4,870 5,477 5,834 5,817 6,318 16,181 20,550

Nontaxable interest on debt securities - - - - 1 - 18

Dividends on Federal Home Loan Bank stock 532 654 640 693 747 1,826 2,162

Other interest income 39 36 349 435 493 424 1,232

Total interest and dividend income 40,834 42,612 47,116 47,383 49,527 130,562 150,280

Interest expense:

Deposits 5,532 7,112 8,536 9,144 9,792 21,180 27,957

Federal Home Loan Bank advances 3,354 4,382 5,765 6,015 6,512 13,501 20,153

Junior subordinated debentures 135 171 213 230 245 519 750

Other interest expense 159 2 - - - 161 -

Total interest expense 9,180 11,667 14,514 15,389 16,549 35,361 48,860

Net interest income 31,654 30,945 32,602 31,994 32,978 95,201 101,420

Provision for credit losses 1,325 2,200 7,036 - 400 10,561 1,575

Net interest income after provision for credit losses30,329 28,745 25,566 31,994 32,578 84,640 99,845

Noninterest income:

Wealth management revenues 8,954 8,605 8,689 8,894 9,153 26,248 27,954

Mortgage banking revenues 12,353 14,851 6,096 3,669 4,840 33,300 11,126

Card interchange fees 1,161 1,031 947 1,100 1,099 3,139 3,114

Service charges on deposit accounts 598 517 860 941 939 1,975 2,743

Loan related derivative income 1,264 99 2,455 1,116 1,407 3,818 2,877

Income from bank-owned life insurance 567 791 564 570 569 1,922 1,784

Net realized gains (losses) on securities - - - 27 - - (80)

Other income 571 426 316 301 335 1,313 944

Total noninterest income 25,468 26,320 19,927 16,618 18,342 71,715 50,462

Noninterest expense:

Salaries and employee benefits 21,892 19,464 19,468 18,374 18,332 60,824 54,387

Outsourced services 3,160 2,784 3,000 2,752 2,722 8,944 7,846

Net occupancy 2,012 1,909 2,019 1,986 1,933 5,940 5,835

Equipment 934 895 977 996 1,046 2,806 3,085

Legal, audit and professional fees 1,252 659 822 692 645 2,733 1,843

FDIC deposit insurance costs 392 674 422 109 (460) 1,488 509

Advertising and promotion 384 186 259 402 368 829 1,132

Amortization of intangibles 228 230 230 229 236 688 714

Other expenses 2,090 1,677 3,256 3,215 2,048 7,023 6,634

Total noninterest expense 32,344 28,478 30,453 28,755 26,870 91,275 81,985

Income before income taxes 23,453 26,587 15,040 19,857 24,050 65,080 68,322

Income tax expense 5,131 5,547 3,139 4,321 5,236 13,817 14,740

Net income $18,322$21,040$11,901$15,536$18,814$51,263 $53,582



Net income available to common shareholders $18,285$21,000$11,869$15,502$18,778$51,154 $53,477



Weighted average common shares outstanding:

Basic 17,260 17,257 17,345 17,351 17,338 17,287 17,324

Diluted 17,317 17,292 17,441 17,436 17,414 17,369 17,406

Earnings per common share:

Basic $1.06 $1.22 $0.68 $0.89 $1.08 $2.96 $3.09

Diluted $1.06 $1.21 $0.68 $0.89 $1.08 $2.95 $3.07



Cash dividends declared per share $0.51 $0.51 $0.51 $0.51 $0.51 $1.53 $1.49

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars and shares in thousands, except per share amounts)



Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2020 2020 2020 2019 2019

Share and Equity Related Data:

Book value per share $30.57 $30.14 $29.48 $29.00 $28.71

Tangible book value per share - Non-GAAP (1) $26.49 $26.04 $25.37 $24.90 $24.60

Market value per share $30.66 $32.75 $36.56 $53.79 $48.31

Shares issued at end of period 17,363 17,363 17,363 17,363 17,338

Shares outstanding at end of period 17,260 17,260 17,252 17,363 17,338



Capital Ratios (2):

Tier 1 risk-based capital 12.23 %11.95 %11.62 %12.23 % 12.21 %

Total risk-based capital 13.09 %12.78 %12.42 %12.94 % 12.94 %

Tier 1 leverage ratio 8.77 %8.42 %8.77 %9.04 % 8.97 %

Common equity tier 1 11.69 %11.40 %11.08 %11.65 % 11.62 %



Balance Sheet Ratios:

Equity to assets 9.02 %8.85 %9.05 %9.51 % 9.58 %

Tangible equity to tangible assets - Non-GAAP (1) 7.91 %7.74 %7.89 %8.28 % 8.32 %

Loans to deposits (3) 100.5 %104.6 %110.6 %111.3 % 105.8 %

For the Nine Months Ended For the Three Months Ended

Sep 30,Jun 30,Mar 31,Dec 31,Sep 30, Sep 30, Sep 30, 2020 2020 2020 2019 2019 2020 2019

Performance Ratios (4):

Net interest margin (5) 2.31 %2.31 %2.61 %2.61% 2.72 % 2.41 % 2.82 %

Return on average assets (net income divided by average assets) 1.24 %1.46 %0.89 %1.18% 1.44 % 1.20 % 1.39 %

Return on average tangible assets - Non-GAAP (1) 1.26 %1.48 %0.90 %1.20% 1.46 % 1.22 % 1.41 %

Return on average equity (net income available for common 13.99%16.51%9.49 %12.24% 15.20 % 13.36 % 15.09 % shareholders divided by average equity)

Return on average tangible equity - Non-GAAP (1) 16.19%19.15%11.05%14.26% 17.79 % 15.50 % 17.79 %

Efficiency ratio (6) 56.6 %49.7 %58.0 %59.2% 52.4 % 54.7 % 54.0 %



(1) See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.

(2) Estimated for September 30, 2020 and actuals for prior periods.

(3) Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits.

(4) Annualized based on the actual number of days in the period.

(5) Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets.

(6) Total noninterest expense as percentage of total revenues (net interest income and noninterest income).

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars in thousands)



For the Three Months Ended For the Nine Months Ended

Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, 2020 2020 2020 2019 2019 2020 2019

Wealth Management Results

Wealth Management Revenues:

Asset-based revenues $8,786 $8,156 $8,355 $8,731 $9,013 $25,297 $27,075

Transaction-based revenues 168 449 334 163 140 951 879

Total wealth management revenues $8,954 $8,605 $8,689 $8,894 $9,153 $26,248 $27,954



Assets Under Administration (AUA):

Balance at beginning of period $6,138,845$5,337,733$6,235,801$6,126,327$6,478,890$6,235,801 $5,910,814

Net investment appreciation (depreciation) & income335,209 671,602 (772,735) 310,766 66,514 234,076 809,060

Net client asset inflows (outflows) (78,402) 129,510 (125,333) (243,175) (419,077) (74,225) (593,547)

Other (1) - - - 41,883 - - -

Balance at end of period $6,395,652$6,138,845$5,337,733$6,235,801$6,126,327$6,395,652 $6,126,327



Percentage of AUA that are managed assets 90% 90% 89% 90% 90% 90% 90%



Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net (2) $14,280 $10,646 $3,688 $4,608 $4,509 $28,614 $9,370

Unrealized gains (losses), net (3) (1,555) 4,415 2,325 (1,025) 243 5,185 1,379

Loan servicing fee income, net (4) (372) (210) 83 86 88 (499) 377

Total mortgage banking revenues $12,353 $14,851 $6,096 $3,669 $4,840 $33,300 $11,126



Residential Mortgage Loan Originations:

Originations for retention in portfolio $132,726 $126,894 $108,498 $120,882 $105,075 $368,118 $226,508

Originations for sale to secondary market (5) 377,137 299,321 183,222 160,175 189,979 859,680 437,928

Total mortgage loan originations $509,863 $426,215 $291,720 $281,057 $295,054 $1,227,798 $664,436



Residential Mortgage Loans Sold:

Sold with servicing rights retained $317,920 $246,945 $44,498 $42,612 $25,766 $609,363 $53,548

Sold with servicing rights released (5) 36,250 58,279 117,693 134,091 159,210 212,222 360,921

Total mortgage loans sold $354,170 $305,224 $162,191 $176,703 $184,976 $821,585 $414,469

(1) Represents the classification of certain non-fee generating assets as AUA due to a reporting change in the fourth quarter of 2019.

Includes gains on loan sales, commission income on loans originated for(2) others, servicing right gains, and gains (losses) on forward loan commitments.

(3) Represents fair value adjustments on mortgage loans held for sale and forward loan commitments.

(4) Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.

(5) Includes brokered loans (loans originated for others).

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)



Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2020 2020 2020 2019 2019

Loans:

Commercial real estate (1) $1,665,745$1,630,998$1,618,020$1,547,572$1,517,320

Commercial & industrial 822,269 852,445 655,157 585,289 566,426

Total commercial 2,488,014 2,483,443 2,273,177 2,132,861 2,083,746



Residential real estate (2)1,506,726 1,508,223 1,510,472 1,449,090 1,378,518



Home equity 268,551 277,632 287,134 290,874 294,250

Other 18,756 18,343 19,613 20,174 21,592

Total consumer 287,307 295,975 306,747 311,048 315,842

Total loans $4,282,047$4,287,641$4,090,396$3,892,999$3,778,106

Commercial real estate loans consist of commercial mortgages and(1) construction and development loans. Commercial mortgages are loans secured by income producing property.

(2) Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties.

September 30, 2020 December 31, 2019

Count Balance % of TotalCountBalance % of Total

Commercial Real Estate Portfolio Segmentation:

Multi-family dwelling 137 $542,971 33 % 123 $430,502 28 %

Retail 134 336,071 20 110 314,661 20

Office 75 292,154 18 78 294,910 19

Hospitality 39 148,164 9 32 128,867 8

Healthcare 16 120,429 7 16 110,409 7

Industrial and warehouse 26 96,819 6 25 82,432 5

Commercial mixed use 21 42,908 3 48 73,895 5

Other 42 86,229 4 70 111,896 8

Commercial real estate loans 490 $1,665,745100 % 502 $1,547,572100 %



Commercial & Industrial Portfolio Segmentation:

Healthcare and social assistance 263 $185,628 23 % 86 $138,857 24 %

Manufacturing 150 90,981 11 65 53,561 9

Retail 201 67,851 8 75 43,386 7

Educational services 60 67,357 8 22 56,556 10

Owner occupied and other real estate 279 65,949 8 157 46,033 8

Professional, scientific and technical 268 44,703 5 66 37,599 6

Accommodation and food services 276 43,525 5 64 16,562 3

Entertainment and recreation 93 34,537 4 35 30,807 5

Information 36 30,071 4 11 22,162 4

Transportation and warehousing 44 27,459 3 23 20,960 4

Finance and insurance 107 26,213 3 57 28,501 5

Public administration 26 23,845 3 23 25,107 4

Other 799 114,150 15 225 65,198 11

Commercial & industrial loans 2,602$822,269 100 % 909 $585,289 100 %

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION

(Unaudited; Dollars in thousands)



September 30, 2020 October 14, 2020

% of % of Outstanding Outstanding Balance, CountBalance Balance, Count Balance excl PPP excl PPP loans (1) loans (1)

Loan Deferments by Portfolio:

Commercial Real Estate Deferments by Segment:

Retail 32 $122,59636 % 20 $97,254 29 %

Hospitality 21 89,049 60 21 89,361 60

Healthcare 4 46,084 38 2 22,159 18

Office 4 17,679 6 3 9,253 3

Multi-family dwelling 9 10,732 2 7 6,362 1

Other 11 28,635 33 11 28,570 33

Subtotal - commercial real estate deferments 81 314,775 19 64 252,959 15

Commercial & Industrial Deferments by Segment:

Healthcare and social assistance 4 14,947 11 3 14,539 11

Educational services 4 7,400 13 4 7,423 13

Accommodation and food services 4 3,480 19 4 3,480 19

Entertainment and recreation 5 2,970 10 5 2,972 10

Owner occupied and other real estate 5 2,243 4 4 1,376 2

Manufacturing 1 1,538 2 3 2,481 4

Transportation and warehousing 5 1,408 6 4 1,125 4

Retail 1 1,068 2 - - -

Other 7 10,221 16 6 8,471 13

Subtotal - commercial & industrial deferments 36 45,275 8 33 41,867 7

Total commercial deferments 117 360,050 16 97 294,826 13

Residential real estate deferments 121 56,947 4 89 40,501 3

Consumer deferments 15 1,159 - 14 1,149 -

Total loan deferments 253 $418,15610 % 200 $336,4768 %



(1) Percent of respective outstanding portfolio segment balance, excluding PPP loans, as of September 30, 2020.







September 30, 2020

Count Balance % of Total

PPP Loans By Industry:

Healthcare and social assistance 183 $49,331 23 %

Accommodation and food services 217 25,410 12

Manufacturing 94 25,395 12

Professional, scientific and technical 223 20,848 10

Retail 138 12,731 6

Educational services 36 11,490 5

Owner occupied and other real estate 117 9,268 4

Entertainment and recreation 65 4,293 2

Information 24 3,914 2

Finance and insurance 56 2,423 1

Transportation and warehousing 21 2,050 1

Public administration 4 482 -

Other 592 49,149 22

Total PPP loans (included in the commercial & 1,770$216,784100 % industrial loan portfolio)



Average PPP loan size $122

Net unamortized fees on PPP loans $5,091

Washington Trust Bancorp, Inc. and Subsidiaries END OF PERIOD LOAN AND DEPOSIT COMPOSITION (Unaudited; Dollars in thousands)



September 30, 2020 December 31, 2019

Balance % of Total Balance % of Total

Commercial Real Estate Loans by Property Location:

Connecticut $653,853 39 %$616,484 40 %

Massachusetts 501,243 30 458,029 30

Rhode Island 432,252 26 394,929 25

Subtotal 1,587,348 95 1,469,442 95

All other states 78,397 5 78,130 5

Total commercial real estate loans $1,665,745100 %$1,547,572100 %



Residential Real Estate Loans by Property Location:

Massachusetts $1,017,65968 %$932,726 64 %

Rhode Island 342,344 23 %356,392 25

Connecticut 125,568 8 140,574 10

Subtotal 1,485,571 99 1,429,692 99

All other states 21,155 1 19,398 1

Total residential real estate loans $1,506,726100 %$1,449,090100 %





Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2020 2020 2020 2019 2019

Deposits:

Noninterest-bearing demand deposits $840,444 $815,770 $622,893 $609,924 $619,839

Interest-bearing demand deposits 170,198 158,343 178,391 159,938 152,200

NOW accounts 644,909 617,792 528,650 520,295 478,462

Money market accounts 877,536 834,954 784,893 765,899 749,122

Savings accounts 439,383 417,195 382,509 373,503 362,868

Time deposits (in-market) 729,058 728,801 776,992 784,481 792,941

In-market deposits 3,701,528 3,572,855 3,274,328 3,214,040 3,155,432

Wholesale brokered time deposits 584,165 528,581 431,986 284,842 430,721

Total deposits $4,285,693$4,101,436$3,706,314 $3,498,882$3,586,153

Washington Trust Bancorp, Inc. and Subsidiaries CREDIT & ASSET QUALITY DATA (Unaudited; Dollars in thousands)



Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2020 2020 2020 2019 2019

Asset Quality Ratios:

Nonperforming assets to total assets 0.25 %0.27 %0.32 %0.35 %0.37 %

Nonaccrual loans to total loans 0.34 %0.37 %0.44 %0.45 %0.39 %

Total past due loans to total loans 0.24 %0.34 %0.40 %0.40 %0.38 %

Allowance for credit losses on loans to nonaccrual loans 289.31 %258.73 %221.37 %155.18 %181.16 %

Allowance for credit losses on loans to total loans 1.00 %0.97 %0.97 %0.69 %0.71 %



Nonperforming Assets:

Commercial real estate $431 $431 $450 $603 $684

Commercial & industrial - - 290 657 -

Total commercial 431 431 740 1,260 684

Residential real estate 12,792 13,850 15,423 14,297 12,531

Home equity 1,429 1,648 1,667 1,763 1,599

Other consumer 88 88 88 88 88

Total consumer 1,517 1,736 1,755 1,851 1,687

Total nonaccrual loans 14,740 16,017 17,918 17,408 14,902

Other real estate owned - - 28 1,109 4,142

Total nonperforming assets $14,740 $16,017 $17,946 $18,517 $19,044



Past Due Loans (30 days or more past due):

Commercial real estate $431 $431 $1,275 $1,433 $684

Commercial & industrial 21 3 310 1 1

Total commercial 452 434 1,585 1,434 685

Residential real estate 8,081 12,499 12,293 11,429 11,599

Home equity 1,753 1,633 2,482 2,696 1,973

Other consumer 108 106 115 130 99

Total consumer 1,861 1,739 2,597 2,826 2,072

Total past due loans $10,394 $14,672 $16,475 $15,689 $14,356



Accruing loans 90 days or more past due $- $- $- $- $-

Nonaccrual loans included in past due loans $8,799 $10,553 $11,385 $11,477 $9,797

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)



For the Three Months Ended For the Nine Months Ended

Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, 2020 2020 2020 2019 2019 2020 2019

Nonaccrual Loan Activity:

Balance at beginning of period $16,017$17,918 $17,408$14,902 $12,867 $17,408 $11,707

Additions to nonaccrual status 971 237 1,729 2,766 5,672 2,937 9,216

Loans returned to accruing status (1,623)(154) (393) - (597) (2,170) (1,570)

Loans charged-off (111) (325) (635) (132) (966) (1,071) (1,888)

Loans transferred to other real estate owned - - (28) - (2,000) (28) (2,000)

Payments, payoffs and other changes (514) (1,659) (163) (128) (74) (2,336) (563)

Balance at end of period $14,740$16,017 $17,918$17,408 $14,902 $14,740 $14,902



Allowance for Credit Losses on Loans:

Balance at beginning of period $41,441$39,665 $27,014$26,997 $27,398 $27,014 $27,072

Adoption of CECL accounting standard (Topic 326) - - 6,501 - - 6,501 -

Provision for credit losses on loans (1) 1,300 2,084 6,773 - 400 10,157 1,575

Charge-offs (111) (326) (635) (132) (966) (1,072) (1,888)

Recoveries 15 18 12 149 165 45 238

Balance at end of period $42,645$41,441 $39,665$27,014 $26,997 $42,645 $26,997



Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of period $2,155 $2,039 $293 $317 $302 $293 $289

Adoption of CECL accounting standard (Topic 326) - - 1,483 - - 1,483 -

Provision for credit losses on unfunded commitments (2)25 116 263 (24) 15 404 28

Balance at end of period (3) $2,180 $2,155 $2,039 $293 $317 $2,180 $317



(1) Included in provision for credit losses in the Consolidated Statements of Income.

Included in provision for credit losses in the Consolidated Statements of(2) Income for the three months ended March 31, 2020. For periods prior to 2020, included in other noninterest expense in the Consolidated Statements of Income.

(3) Included in other liabilities in the Consolidated Balance Sheets.

For the Three Months Ended For the Nine Months Ended

Sep 30,Jun 30,Mar 31,Dec 31,Sep 30,Sep 30, Sep 30, 2020 2020 2020 2019 2019 2020 2019

Net Loan Charge-Offs (Recoveries):

Commercial real estate $- $19 $153 ($44) $947 $172 $947

Commercial & industrial - 284 290 (15) (122) 574 (132)

Total commercial - 303 443 (59) 825 746 815

Residential real estate 99 - - - - 99 486

Home equity (4) (5) 172 17 (36) 163 301

Other consumer 1 10 8 25 12 19 48

Total consumer (3) 5 180 42 (24) 182 349

Total $96 $308 $623 ($17) $801 $1,027 $1,650



Net charge-offs to average loans (annualized)0.01% 0.03% 0.06% - %0.08 %0.03 %0.06 %

The following table presents 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. Unrealized gains (losses) on available for sale securities and fair value adjustments on mortgage loans held for sale are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)



For the Three Months Ended September 30, 2020 June 30, 2020 Quarter Change

Average Yield/Average Yield/Average Yield/ Balance InterestRate Balance InterestRate Balance InterestRate

Assets:

Cash, federal funds sold and short-term investments$168,106 $39 0.09%$187,306 $36 0.08%($19,200)$3 0.01 %

Mortgage loans held for sale 61,043 468 3.05 53,443 440 3.31 7,600 28 (0.26)

Taxable debt securities 906,977 4,870 2.14 904,792 5,477 2.43 2,185 (607) (0.29)

FHLB stock 43,839 532 4.83 51,967 654 5.06 (8,128) (122) (0.23)

Commercial real estate 1,652,136 11,649 2.81 1,635,431 12,580 3.09 16,705 (931) (0.28)

Commercial & industrial 849,452 6,920 3.24 791,672 6,739 3.42 57,780 181 (0.18)

Total commercial 2,501,588 18,569 2.95 2,427,103 19,319 3.20 74,485 (750) (0.25)

Residential real estate 1,510,621 14,047 3.70 1,497,665 14,330 3.85 12,956 (283) (0.15)

Home equity 276,221 2,320 3.34 282,470 2,382 3.39 (6,249) (62) (0.05)

Other 18,706 237 5.04 18,956 229 4.86 (250) 8 0.18

Total consumer 294,927 2,557 3.45 301,426 2,611 3.48 (6,499) (54) (0.03)

Total loans 4,307,136 35,173 3.25 4,226,194 36,260 3.45 80,942 (1,087)(0.20)

Total interest-earning assets 5,487,101 41,082 2.98 5,423,702 42,867 3.18 63,399 (1,785)(0.20)

Noninterest-earning assets 377,348 365,990 11,358

Total assets $5,864,449 $5,789,692 $74,757

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits $157,986 $83 0.21%$162,388 $142 0.35%($4,402) ($59) (0.14)%

NOW accounts 631,148 99 0.06 570,739 84 0.06 60,409 15 -

Money market accounts 839,032 977 0.46 821,063 1,370 0.67 17,969 (393) (0.21)

Savings accounts 428,781 67 0.06 403,286 67 0.07 25,495 - (0.01)

Time deposits (in-market) 730,464 3,015 1.64 746,750 3,507 1.89 (16,286) (492) (0.25)

Total interest-bearing in-market deposits 2,787,411 4,241 0.61 2,704,226 5,170 0.77 83,185 (929) (0.16)

Wholesale brokered time deposits 463,756 1,291 1.11 559,822 1,942 1.40 (96,066) (651) (0.29)

Total interest-bearing deposits 3,251,167 5,532 0.68 3,264,048 7,112 0.88 (12,881) (1,580)(0.20)

FHLB advances 860,758 3,354 1.55 1,068,034 4,382 1.65 (207,276)(1,028)(0.10)

Junior subordinated debentures 22,681 135 2.37 22,681 171 3.03 - (36) (0.66)

PPPLF borrowings 180,128 159 0.35 2,565 2 0.31 177,563 157 0.04

Total interest-bearing liabilities 4,314,734 9,180 0.85 4,357,328 11,667 1.08 (42,594) (2,487)(0.23)

Noninterest-bearing demand deposits 842,949 745,050 97,899

Other liabilities 186,981 175,563 11,418

Shareholders' equity 519,785 511,751 8,034

Total liabilities and shareholders' equity $5,864,449 $5,789,692 $74,757

Net interest income (FTE) $31,902 $31,200 $702

Interest rate spread 2.13% 2.10% 0.03 %

Net interest margin 2.31% 2.31% - %

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

For the Three Months EndedSep 30,Jun 30,Quarter 2020 2020 Change

Commercial loans $248 $254 ($6)

Total $248 $254 ($6)



Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)



For the Nine Months Ended September 30, 2020 September 30, 2019 Change

Average Yield/Average Yield/Average Yield/ Balance InterestRate Balance Interest Rate Balance Interest Rate

Assets:

Cash, federal funds sold and short-term investments$156,296 $424 0.36%$75,333 $1,232 2.19%$80,963 ($808) (1.83)%

Mortgage loans for sale 48,570 1,193 3.28 28,379 878 4.14 20,191 315 (0.86)

Taxable debt securities 905,692 16,181 2.39 972,511 20,550 2.83 (66,819)(4,369) (0.44)

Nontaxable debt securities - - - 602 24 5.33 (602) (24) (5.33)

Total securities 905,692 16,181 2.39 973,113 20,574 2.83 (67,421)(4,393) (0.44)

FHLB stock 49,236 1,826 4.95 48,185 2,162 6.00 1,051 (336) (1.05)

Commercial real estate 1,623,612 40,326 3.32 1,461,736 51,702 4.73 161,876 (11,376)(1.41)

Commercial & industrial 749,905 20,214 3.60 603,143 21,972 4.87 146,762 (1,758) (1.27)

Total commercial 2,373,517 60,540 3.41 2,064,879 73,674 4.77 308,638 (13,134)(1.36)

Residential real estate 1,492,589 42,660 3.82 1,358,606 41,099 4.04 133,983 1,561 (0.22)

Home equity 281,488 7,802 3.70 284,657 10,757 5.05 (3,169) (2,955) (1.35)

Other 19,171 716 4.99 24,017 887 4.94 (4,846) (171) 0.05

Total consumer 300,659 8,518 3.78 308,674 11,644 5.04 (8,015) (3,126) (1.26)

Total loans 4,166,765 111,7183.58 3,732,159 126,417 4.53 434,606 (14,699)(0.95)

Total interest-earning assets 5,326,559 131,3423.29 4,857,169 151,263 4.16 469,390 (19,921)(0.87)

Noninterest-earning assets 357,133 292,702 64,431

Total assets $5,683,692 $5,149,871 $533,821

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits $158,594 $725 0.61%$144,306 $1,959 1.82%$14,288 ($1,234)(1.21)%

NOW accounts 569,283 253 0.06 462,856 228 0.07 106,427 25 (0.01)

Money market accounts 818,530 4,439 0.72 668,330 5,534 1.11 150,200 (1,095) (0.39)

Savings accounts 402,243 195 0.06 365,911 204 0.07 36,332 (9) (0.01)

Time deposits (in-market) 752,443 10,571 1.88 795,559 11,900 2.00 (43,116)(1,329) (0.12)

Total interest-bearing in-market deposits 2,701,093 16,183 0.80 2,436,962 19,825 1.09 264,131 (3,642) (0.29)

Wholesale brokered time deposits 471,771 4,997 1.41 485,405 8,132 2.24 (13,634)(3,135) (0.83)

Total interest-bearing deposits 3,172,864 21,180 0.89 2,922,367 27,957 1.28 250,497 (6,777) (0.39)

FHLB advances 1,016,943 13,501 1.77 1,019,172 20,153 2.64 (2,229) (6,652) (0.87)

Junior subordinated debentures 22,681 519 3.06 22,681 750 4.42 - (231) (1.36)

PPPLF borrowings 61,333 161 0.35 - - - 61,333 161 0.35

Total interest-bearing liabilities 4,273,821 35,361 1.11 3,964,220 48,860 1.65 309,601 (13,499)(0.54)

Noninterest-bearing demand deposits 733,359 613,917 119,442

Other liabilities 164,928 98,012 66,916

Shareholders' equity 511,584 473,722 37,862

Total liabilities and shareholders' equity $5,683,692 $5,149,871 $533,821

Net interest income (FTE) $95,981 $102,403 ($6,422)

Interest rate spread 2.18% 2.51% (0.33)%

Net interest margin 2.41% 2.82% (0.41)%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

Sep 30,Sep 30, For the Nine Months Ended Change 2020 2019

Commercial loans $780 $977 ($197)

Nontaxable debt securities- 6 (6)

Total $780 $983 ($203)

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures

(Unaudited; Dollars in thousands, except per share amounts)



Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, 2020 2020 2020 2019 2019

Tangible Book Value per Share:

Total shareholders' equity, as reported $527,693 $520,163 $508,597 $503,492 $497,825

Less:

Goodwill 63,909 63,909 63,909 63,909 63,909

Identifiable intangible assets, net 6,530 6,759 6,988 7,218 7,448

Total tangible shareholders' equity $457,254 $449,495 $437,700 $432,365 $426,468



Shares outstanding, as reported 17,260 17,260 17,252 17,363 17,338



Book value per share - GAAP $30.57 $30.14 $29.48 $29.00 $28.71

Tangible book value per share - Non-GAAP $26.49 $26.04 $25.37 $24.90 $24.60



Tangible Equity to Tangible Assets:

Total tangible shareholders' equity $457,254 $449,495 $437,700 $432,365 $426,468



Total assets, as reported $5,849,792 $5,876,960 $5,620,979 $5,292,659 $5,198,878

Less:

Goodwill 63,909 63,909 63,909 63,909 63,909

Identifiable intangible assets, net 6,530 6,759 6,988 7,218 7,448

Total tangible assets $5,779,353 $5,806,292 $5,550,082 $5,221,532 $5,127,521



Equity to assets - GAAP 9.02 %8.85 %9.05 %9.51 %9.58 %

Tangible equity to tangible assets - Non-GAAP 7.91 %7.74 %7.89 %8.28 %8.32 %

For the Three Months Ended For the Nine Months Ended

Sep 30, Jun 30, Mar 31,Dec 31, Sep 30, Sep 30, Sep 30, 2020 2020 2020 2019 2019 2020 2019

Return on Average Tangible Assets:

Net income, as reported $18,322 $21,040 $11,901 $15,536 $18,814 $51,263 $53,582



Total average assets, as reported $5,864,449 $5,789,692 $5,394,948 $5,227,035 $5,181,016 $5,683,692 $5,149,871

Less average balances of:

Goodwill 63,909 63,909 63,909 63,909 63,909 63,909 63,909

Identifiable intangible assets, net 6,641 6,871 7,100 7,330 7,562 6,870 7,799

Total average tangible assets $5,793,899 $5,718,912 $5,323,939 $5,155,796 $5,109,545 $5,612,913 $5,078,163



Return on average assets - GAAP 1.24 %1.46 %0.89% 1.18 % 1.44 % 1.20 % 1.39 %

Return on average tangible assets - Non-GAAP 1.26 %1.48 %0.90% 1.20 % 1.46 % 1.22 % 1.41 %



Return on Average Tangible Equity:

Net income available to common shareholders, as reported$18,285 $21,000 $11,869 $15,502 $18,778 $51,154 $53,477



Total average equity, as reported $519,785 $511,751 $503,124 $502,614 $490,197 $511,584 $473,722

Less average balances of:

Goodwill 63,909 63,909 63,909 63,909 63,909 63,909 63,909

Identifiable intangible assets, net 6,641 6,871 7,100 7,330 7,562 6,870 7,799

Total average tangible equity $449,235 $440,971 $432,115 $431,375 $418,726 $440,805 $402,014



Return on average equity - GAAP 13.99 %16.51 %9.49% 12.24 % 15.20 % 13.36 % 15.09 %

Return on average tangible equity - Non-GAAP 16.19 %19.15 %11.05% 14.26 % 17.79 % 15.50 % 17.79 %



Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.