PR Newswire | Jul 20, 2020 05:03PM EDT

07/20 16:02 CDT

Washington Trust Reports Second Quarter 2020 Earnings WESTERLY, R.I., July 20, 2020

WESTERLY, R.I., July 20, 2020 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced second quarter 2020 net income of $21.0 million, or $1.21 per diluted share, compared to net income of $11.9 million, or $0.68 per diluted share, reported for the first quarter of 2020.

"Washington Trust reported strong second quarter earnings, a testament to our success at executing a business continuity plan that allowed our employees to safely provide banking services and maintain a high level of personal customer service during the COVID-19 pandemic," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. "We assisted thousands of borrowers, depositors and wealth clients with their financial needs during these uncertain times and our second quarter performance demonstrated how our diversified business model enables us to generate earnings in a challenging environment. While there is still uncertainty regarding the severity and duration of the COVID-19 pandemic and its related economic effects, we believe that Washington Trust is well-positioned with strong capital and ample sources of liquidity to handle these challenges as we move forward during this unprecedented time."

As the nation's oldest community bank, Washington Trust remains steadfast in its commitment to our employees, customers and communities. The COVID-19 pandemic has caused an unprecedented disruption to the economy and the communities we serve. Washington Trust has responded by working with our valued customers to assist them in these difficult times by providing loan payment deferrals, participating in the Small Business Administration's ("SBA's") Paycheck Protection Program ("PPP") and providing other accommodations. Remote working arrangements continue for a significant portion of our workforce. In July, we reopened our branch lobbies to customer foot traffic while adhering to and promoting social distancing guidelines.

Selected financial highlights for the second quarter of 2020 include:

* Returns on average equity and average assets for the second quarter were 16.51% and 1.46%, respectively, compared to 9.49% and 0.89%, respectively, in the preceding quarter. * The provision for credit losses was $2.2 million in the second quarter, compared to $7.0 million in the preceding quarter. * Mortgage banking revenues hit an all-time quarterly high, totaling $14.9 million for the second quarter, up by $8.8 million, or 144%, from the preceding quarter. * Residential mortgage loan originations for portfolio or sale amounted to a quarterly record of $426 million in the second quarter of 2020, up by $134 million, or 46%, from the preceding quarter. * Total loans amounted to $4.3 billion at June 30, 2020, up by $197 million, or 5%, from the end of the preceding quarter. Total loans were up by $557 million, or 15%, from a year ago. * Total in-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.6 billion, up by $299 million, or 9%, from the end of the preceding quarter, and up by $551 million, or 18%, from a year ago.

Net Interest IncomeNet interest income was $30.9 million for the second quarter of 2020, down by $1.7 million, or 5%, from the first quarter of 2020. The net interest margin was 2.31% for the second quarter, down by 30 basis points from 2.61% reported in the preceding quarter.

Significant linked quarter changes included:

* Average interest-earning assets increased by $357 million, with increases of $261 million in average loans and $74 million in average cash and short-term investments balances. The yield on interest-earning assets for the second quarter was 3.18%, down by 58 basis points from the preceding quarter, reflecting the impact of lower market interest rates. * Growth in average loans included an increase of $138 million in average balances of PPP loans, which are fully guaranteed by the SBA. The yield on PPP loans for the second quarter was 2.65%, which included the net amortization of deferred lender processing fees and deferred labor costs associated with the loan originations. * Average interest-bearing liabilities increased by $208 million, with increases of $115 million in average wholesale funding balances and $94 million in average in-market deposits. Wholesale funding balances consist of wholesale brokered time deposits and borrowings from the Federal Home Loan Bank and the Federal Reserve. The cost of interest-bearing liabilities for the second quarter of 2020 was 1.08%, down by 33 basis points from the preceding quarter, due to lower market interest rates. * Average noninterest-bearing demand deposit balances increased by $134 million from the preceding quarter.

Noninterest IncomeNoninterest income totaled $26.3 million for the second quarter of 2020, up by $6.4 million, or 32%, from the first quarter of 2020. Linked quarter changes included:

* Mortgage banking revenues totaled $14.9 million for the second quarter of 2020, up by $8.8 million, or 144%, from the first quarter of 2020, with increases in both realized and unrealized gains associated with mortgage banking activities. Net realized gains increased on a linked quarter basis due to increases in sales volume and sales yield on loans sold to the secondary market. Mortgage loans sold to the secondary market hit an all-time quarterly high of $305 million in the second quarter of 2020, up by $143 million, or 88%, from the preceding quarter. Net unrealized gains also increased on a linked quarter basis, reflecting growth in the mortgage pipeline and a corresponding increase in the fair value of mortgage loan commitments as of June 30, 2020. * Wealth management revenues amounted to $8.6 million for the second quarter of 2020, down by $84 thousand, or 1%, on a linked quarter basis. This included a decrease in asset-based revenues of $199 thousand, or 2%, correlating to the linked quarter decline in the average balance of wealth management assets under administration ("AUA"). The decrease in asset-based revenues was partially offset by an increase in transaction-based revenues of $115 thousand, or 34%. * Wealth management AUA amounted to $6.1 billion at June 30, 2020, up by $801 million, or 15%, from March 31, 2020. The increase reflected net investment appreciation of $671.6 million and net client asset inflows of $129.5 million in the second quarter of 2020. The average balance of AUA for the second quarter of 2020 decreased by approximately $157 million, or 3%, from the average balance for the preceding quarter. * Loan related derivative income was $99 thousand in the second quarter of 2020, down by $2.4 million, or 96%, from the preceding quarter, reflecting a lower volume of commercial borrower interest rate swap transactions. * Income from bank-owned life insurance totaled $791 thousand in the second quarter of 2020, up by $227 thousand, or 40%, from the preceding quarter. Included in the second quarter was a $229 thousand non-taxable gain due to the receipt of life insurance proceeds.

Noninterest ExpensesNoninterest expenses totaled $28.5 million for the second quarter of 2020, down by $2.0 million, or 6%, from the first quarter of 2020. The linked quarter comparison of noninterest expenses was impacted by the following item:

* In the first quarter of 2020, a contingency reserve of approximately $800 thousand, largely due to a potential loss associated with counterfeit checks drawn on a commercial customer's account, was included in other noninterest expenses. This matter was resolved in the second quarter of 2020 and resulted in a reduction of $170 thousand from the previously established reserve, which was recognized as a reduction of other noninterest expenses in the second quarter of 2020.

Excluding the impact of the aforementioned item, noninterest expenses for the second quarter of 2020 decreased by approximately$1.0 million, or 3%, from the preceding quarter. Linked quarter changes included:

* Salaries and employee benefits expense, our largest noninterest expense, amounted to $19.5 million, which was essentially flat compared to preceding quarter. Volume-related increases in mortgage commission expense were essentially offset with higher deferred labor (contra-expense) largely associated with PPP loan originations in the second quarter. * Outsourced services expense was down by $216 thousand from the preceding quarter, largely due to lower volume-related third party processing costs associated with customer loan related derivative transactions. * FDIC deposit insurance costs were up by $252 thousand from the preceding quarter, largely due to growth in average assets. * The remaining decline in noninterest expenses reflects modest decreases across a variety of other noninterest expense categories. These categories included net occupancy, employee travel and entertainment and office supplies, which declined due to remote working conditions. Declines in other expense categories such as advertising and promotion and corporate sponsorships were timing-related.

Income TaxIncome tax expense totaled $5.5 million for the second quarter of 2020, up by $2.4 million from the preceding quarter, largely due to a higher level of pre-tax income. The effective tax rate for the second quarter of 2020 was 20.9%, unchanged from the preceding quarter. Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2020 effective tax rate to be approximately 21.0%.

Investment SecuritiesThe securities portfolio totaled $938 million at June 30, 2020, up by $21 million, or 2%, from March 31, 2020, reflecting purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities. This increase was partially offset by routine pay-downs on mortgage-backed securities, calls and maturities of debt securities, as well as a temporary decrease in the fair value of available for sale securities. Second quarter 2020 purchases totaled $132 million, with a weighted average yield of 1.88%. Securities represented 16% of total assets at both June 30, 2020 and March 31, 2020.

LoansTotal loans stood at $4.3 billion at June 30, 2020, up by $197 million, or 5% from the end of the preceding quarter. Linked quarter changes included:

* Commercial loans increased by $210 million, or 9%, from March 31, 2020, with a net increase of $197 million in the commercial and industrial portfolio and a net increase of $13 million in the commercial real estate portfolio. Loan growth was due to the origination of PPP loans. As of June 30, 2020, there were 1,690 PPP loans with a carrying value of $212 million included in the commercial and industrial portfolio. * Residential real estate loans decreased by $2 million from March 31, 2020. * The consumer loan portfolio decreased by $11 million from the balance at March 31, 2020.

Washington Trust continues to work with and support our customers experiencing financial difficulty due to the COVID-19 pandemic. Depending on the demonstrated need of the borrower, Washington Trust has provided loan payment deferrals for up to six months. As of June 30, 2020, we have executed 583 short-term deferments on loan balances of $652 million, which represented 15% of total loan balances as of June 30, 2020. In accordance with regulatory guidance and GAAP, eligible short-term deferments are not required to be classified as troubled debt restructured loans and will not be reported as past due provided that they are performing in accordance with the modified terms. See additional discussion under the Asset Quality section below.

Deposits and BorrowingsTotal deposits amounted to $4.1 billion at June 30, 2020, up by $395 million, or 11%, from the end of the preceding quarter. Included in total deposits are out-of-market wholesale brokered time deposits, which increased by $97 million, or 22%, from March 31, 2020. Excluding wholesale brokered time deposits, in-market deposits at June 30, 2020 were up by $299 million, or 9%, from the end of the preceding quarter, largely due to increases in noninterest-bearing demand deposit balances and NOW account balances. Growth included PPP loan fundings made into customer accounts at Washington Trust. These funds are expected to decrease as customers use them for business needs.

Federal Home Loan Bank advances totaled $1.0 billion at June 30, 2020, down by $193 million from March 31, 2020.

In June 2020, Washington Trust began participating in the Federal Reserve's Paycheck Protection Program Liquidity Facility ("PPPLF"), which extends credit to depository institutions with a term of up to two years at a fixed interest rate of 0.35%. Only PPP loans can be pledged as collateral to access the facility. As of June 30, 2020, PPPLF borrowings amounted to $39 million.

Asset QualityNonperforming assets amounted to $16.0 million at June 30, 2020, down by $1.9 million from the end of the preceding quarter. This decline reflected a $1.9 million decrease in nonaccrual loans, largely in the residential real estate portfolio. At of June 30, 2020 there were no properties held in OREO.

Total nonaccrual loans amounted to $16.0 million, or 0.37% of total loans, at June 30, 2020, compared to $17.9 million, or 0.44% of total loans, at March 31, 2020. Total past due loans amounted to $14.7 million, or 0.34% of total loans, at June 30, 2020, compared to $16.5 million, or 0.40% of total loans, at March 31, 2020. Total troubled debt restructured ("TDR") loans amounted to $6.5 million as of June 30, 2020, up by $5.6 million from March 31, 2020 due to 12 short-term deferments on loans that were delinquent before the pandemic and did not qualify for TDR regulatory relief. Approximately 80% of TDR balances at June 30, 2020 were in the residential and consumer loan portfolios. Given the continued uncertain impact to the economy of the COVID-19 pandemic, Washington Trust continues to actively monitor asset quality as the potential exists for adverse events to impact asset quality trends.

In the second quarter of 2020, a provision for credit losses of $2.2 million was charged to earnings, compared to a provision for credit losses of $7.0 million in the preceding quarter. The second quarter of 2020 provision for credit losses reflects management's assessment of loss exposure, including continued uncertainty regarding the severity and duration of the COVID-19 pandemic and related economic effects.

In the second quarter of 2020, net charge-offs of $308 thousand were recognized, compared to $623 thousand in the preceding quarter.

The allowance for credit losses ("ACL") on loans amounted to $41.4 million, or 0.97% of total loans, at June 30, 2020, compared to $39.7 million, or 0.97% of total loans, at March 31, 2020. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.2 million at June 30, 2020, compared to $2.0 million at March 31, 2020.

Capital and DividendsTotal shareholders' equity was $520.2 million at June 30, 2020, up by $11.6 million from March 31, 2020. This increase included net income of $21.0 million, which was partially offset by $8.9 million in dividend declarations.

Capital levels at June 30, 2020 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.78% at June 30, 2020, compared to 12.42% at March 31, 2020.

Book value per share amounted to $30.14 at June 30, 2020, compared to $29.48 at March 31, 2020.

The Board of Directors declared a quarterly dividend of 51 cents per share for the quarter ended June 30, 2020. The dividend was paid on July 10, 2020 to shareholders of record on July 1, 2020.

Conference CallWashington Trust will host a conference call to discuss its second quarter results, business highlights and outlook on Tuesday, July 21, 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 10146147; the audio replay will be available through August 4, 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 September 30, 2020.

BackgroundWashington 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; 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)

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,

2020 2020 2019 2019 2019

Assets:

Cash and due from $215,601 $178,678 $132,193 $141,768 $115,904banks

Short-term 7,739 6,591 6,262 4,336 3,910investments

Mortgage loans heldfor sale, at fair 43,997 49,751 27,833 44,657 39,996value

Available for saledebt securities, at 938,446 917,392 899,490 887,020 969,168fair value

Federal Home Loan 50,017 53,576 50,853 45,030 49,759Bank stock, at cost

Loans:

Total loans 4,287,641 4,090,396 3,892,999 3,778,106 3,730,339

Less: allowance forcredit losses on 41,441 39,665 27,014 26,997 27,398loans

Net loans 4,246,200 4,050,731 3,865,985 3,751,109 3,702,941

Premises and 28,067 28,543 28,700 29,293 29,302equipment, net

Operating lease 27,022 26,098 26,792 27,500 28,174right-of-use assets

Investment inbank-owned life 83,056 83,053 82,490 81,920 81,351insurance

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

Identifiableintangible assets, 6,759 6,988 7,218 7,448 7,684net

Other assets 166,147 155,669 100,934 114,888 97,574

Total assets $5,876,960 $5,620,979 $5,292,659 $5,198,878 $5,189,672

Liabilities:

Deposits:

Noninterest-bearing $815,770 $622,893 $609,924 $619,839 $587,326deposits

Interest-bearing 3,285,666 3,083,421 2,888,958 2,966,314 2,917,296deposits

Total deposits 4,101,436 3,706,314 3,498,882 3,586,153 3,504,622

Federal Home Loan 1,005,051 1,198,534 1,141,464 956,786 1,060,960Bank advances

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

Operating lease 29,125 28,184 28,861 29,541 30,210liabilities

Other liabilities 198,504 156,669 97,279 105,892 86,994

Total liabilities 5,356,797 5,112,382 4,789,167 4,701,053 4,705,467

Shareholders'Equity:

Common stock 1,085 1,085 1,085 1,084 1,083

Paid-in capital 123,684 123,167 123,281 121,900 121,115

Retained earnings 399,386 387,243 390,363 383,765 373,873

Accumulated othercomprehensive (462) 929 (11,237) (8,924) (11,866)income (loss)

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

Total shareholders' 520,163 508,597 503,492 497,825 484,205equity

Total liabilitiesand shareholders' $5,876,960 $5,620,979 $5,292,659 $5,198,878 $5,189,672equity

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 Six Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,

2020 2020 2019 2019 2019 2020 2019

Interestincome:

Interest and $36,005 $40,008 $40,079 $41,558 $42,138 $76,013 $83,882fees on loans

Interest onmortgage loans 440 285 359 410 288 725 468held for sale

Taxableinterest on 5,477 5,834 5,817 6,318 7,006 11,311 14,232debtsecurities

Nontaxableinterest on - - - 1 8 - 17debtsecurities

Dividends onFederal Home 654 640 693 747 720 1,294 1,415Loan Bankstock

Other interest 36 349 435 493 399 385 739income

Total interestand dividend 42,612 47,116 47,383 49,527 50,559 89,728 100,753income

Interestexpense:

Deposits 7,112 8,536 9,144 9,792 9,469 15,648 18,165

Federal HomeLoan Bank 4,382 5,765 6,015 6,512 6,980 10,147 13,641advances

Juniorsubordinated 171 213 230 245 252 384 505debentures

Other interest 2 - - - - 2 -expense

Total interest 11,667 14,514 15,389 16,549 16,701 26,181 32,311expense

Net interest 30,945 32,602 31,994 32,978 33,858 63,547 68,442income

Provision for 2,200 7,036 - 400 525 9,236 1,175credit losses

Net interestincome after 28,745 25,566 31,994 32,578 33,333 54,311 67,267provision forcredit losses

Noninterestincome:

Wealthmanagement 8,605 8,689 8,894 9,153 9,549 17,294 18,801revenues

Mortgagebanking 14,851 6,096 3,669 4,840 3,640 20,947 6,286revenues

Cardinterchange 1,031 947 1,100 1,099 1,018 1,978 2,015fees

Servicecharges on 517 860 941 939 929 1,377 1,804depositaccounts

Loan relatedderivative 99 2,455 1,116 1,407 746 2,554 1,470income

Income frombank-owned 791 564 570 569 566 1,355 1,215life insurance

Net realizedgains (losses) - - 27 - (80) - (80)on securities

Other income 426 316 301 335 385 742 609

Totalnoninterest 26,320 19,927 16,618 18,342 16,753 46,247 32,120income

Noninterestexpense:

Salaries andemployee 19,464 19,468 18,374 18,332 18,436 38,932 36,055benefits

Outsourced 2,784 3,000 2,752 2,722 2,518 5,784 5,124services

Net occupancy 1,909 2,019 1,986 1,933 1,904 3,928 3,902

Equipment 895 977 996 1,046 1,028 1,872 2,039

Legal, auditand 659 822 692 645 664 1,481 1,198professionalfees

FDIC depositinsurance 674 422 109 (460) 540 1,096 969costs

Advertising 186 259 402 368 525 445 764and promotion

Amortization 230 230 229 236 239 460 478of intangibles

Other expenses 1,677 3,256 3,215 2,048 2,297 4,933 4,586

Totalnoninterest 28,478 30,453 28,755 26,870 28,151 58,931 55,115expense

Income before 26,587 15,040 19,857 24,050 21,935 41,627 44,272income taxes

Income tax 5,547 3,139 4,321 5,236 4,662 8,686 9,504expense

Net income $21,040 $11,901 $15,536 $18,814 $17,273 $32,941 $34,768

Net incomeavailable to $21,000 $11,869 $15,502 $18,778 $17,238 $32,869 $34,699commonshareholders

Weightedaverage commonsharesoutstanding:

Basic 17,257 17,345 17,351 17,338 17,330 17,301 17,317

Diluted 17,292 17,441 17,436 17,414 17,405 17,377 17,403

Earnings percommon share:

Basic $1.22 $0.68 $0.89 $1.08 $0.99 $1.90 $2.00

Diluted $1.21 $0.68 $0.89 $1.08 $0.99 $1.89 $1.99

Cash dividendsdeclared per $0.51 $0.51 $0.51 $0.51 $0.51 $1.02 $0.98share

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

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

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

Share and Equity Related Data:

Book value per share $30.14 $29.48 $29.00 $28.71 $27.93

Tangible book value per share - $26.04 $25.37 $24.90 $24.60 $23.80Non-GAAP (1)

Market value per share $32.75 $36.56 $53.79 $48.31 $52.18

Shares issued at end of period 17,363 17,363 17,363 17,338 17,336

Shares outstanding at end of 17,260 17,252 17,363 17,338 17,336period

Capital Ratios (2):

Tier 1 risk-based capital 11.95 % 11.62 % 12.23 % 12.21 % 12.06 %

Total risk-based capital 12.78 % 12.42 % 12.94 % 12.94 % 12.80 %

Tier 1 leverage ratio 8.42 % 8.77 % 9.04 % 8.97 % 8.76 %

Common equity tier 1 11.40 % 11.08 % 11.65 % 11.62 % 11.46 %

Balance Sheet Ratios:

Equity to assets 8.85 % 9.05 % 9.51 % 9.58 % 9.33 %

Tangible equity to tangible assets 7.74 % 7.89 % 8.28 % 8.32 % 8.06 %- Non-GAAP (1)

Loans to deposits (3) 104.6 % 110.6 % 111.3 % 105.8 % 106.8 %

For the Six Months For the Three Months Ended Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,

2020 2020 2019 2019 2019 2020 2019

PerformanceRatios (4):

Net interest 2.31 % 2.61 % 2.61 % 2.72 % 2.81 % 2.46 % 2.87 %margin (5)

Return onaverageassets (netincome 1.46 % 0.89 % 1.18 % 1.44 % 1.34 % 1.18 % 1.37 %divided byaverageassets)

Return onaveragetangible 1.48 % 0.90 % 1.20 % 1.46 % 1.36 % 1.20 % 1.39 %assets -Non-GAAP (1)

Return onaverageequity (netincomeavailable 16.51 % 9.49 % 12.24 % 15.20 % 14.58 % 13.03 % 15.04 %for commonshareholdersdivided byaverageequity)

Return onaveragetangible 19.15 % 11.05 % 14.26 % 17.79 % 17.17 % 15.14 % 17.78 %equity -Non-GAAP (1)

Efficiency 49.7 % 58.0 % 59.2 % 52.4 % 55.6 % 53.7 % 54.8 %ratio (6)



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

(2)Estimated for June 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 Six Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,

2020 2020 2019 2019 2019 2020 2019

Wealth ManagementResults

Wealth ManagementRevenues:

Asset-based $8,156 $8,355 $8,731 $9,013 $9,141 $16,511 $18,062revenues

Transaction-based 449 334 163 140 408 783 739revenues

Total wealthmanagement $8,605 $8,689 $8,894 $9,153 $9,549 $17,294 $18,801revenues

Assets UnderAdministration(AUA):

Balance atbeginning of $5,337,733 $6,235,801 $6,126,327 $6,478,890 $6,350,128 $6,235,801 $5,910,814period

Net investmentappreciation 671,602 (772,735) 310,766 66,514 222,489 (101,133) 742,546(depreciation) &income

Net client assetinflows 129,510 (125,333) (243,175) (419,077) (93,727) 4,177 (174,470)(outflows)

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

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

Percentage of AUAthat are managed 90% 89% 90% 90% 91% 90% 91%assets

Mortgage BankingResults

Mortgage BankingRevenues:

Realized gains onloan sales, net $10,646 $3,688 $4,608 $4,509 $2,924 $14,334 $4,861(2)

Unrealized gains 4,415 2,325 (1,025) 243 599 6,740 1,136(losses), net (3)

Loan servicingfee income, net (210) 83 86 88 117 (127) 289(4)

Total mortgage $14,851 $6,096 $3,669 $4,840 $3,640 $20,947 $6,286banking revenues

ResidentialMortgage LoanOriginations:

Originations forretention in $126,894 $108,498 $120,882 $105,075 $69,736 $235,392 $121,433portfolio

Originations forsale to secondary 299,321 183,222 160,175 189,979 162,123 482,543 247,949market (5)

Total mortgage $426,215 $291,720 $281,057 $295,054 $231,859 $717,935 $369,382loan originations

ResidentialMortgage LoansSold:

Sold withservicing rights $246,945 $44,498 $42,612 $25,766 $18,292 $291,443 $27,782retained

Sold withservicing rights 58,279 117,693 134,091 159,210 119,122 175,972 201,711released (5)

Total mortgage $305,224 $162,191 $176,703 $184,976 $137,414 $467,415 $229,493loans sold



(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 AND DEPOSIT COMPOSITION

(Unaudited; Dollars in thousands)

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,

2020 2020 2019 2019 2019

Loans:

Commercial real $1,630,998 $1,618,020 $1,547,572 $1,517,320 $1,482,836estate (1)

Commercial & 852,445 655,157 585,289 566,426 583,873industrial

Total commercial 2,483,443 2,273,177 2,132,861 2,083,746 2,066,709

Residential real 1,508,223 1,510,472 1,449,090 1,378,518 1,352,113estate (2)

Home equity 277,632 287,134 290,874 294,250 288,078

Other 18,343 19,613 20,174 21,592 23,439

Total consumer 295,975 306,747 311,048 315,842 311,517

Total loans $4,287,641 $4,090,396 $3,892,999 $3,778,106 $3,730,339



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.

June 30, 2020

Outstanding Balance Deferments

% of Count Balance % of Total Count Balance Outstanding Balance

Commercial RealEstate PortfolioSegmentation:

Multi-family 141 $526,009 32 % 20 $34,318 7 %dwelling

Retail 133 327,139 20 43 124,071 38

Office 76 288,671 18 15 74,099 26

Hospitality 40 144,988 9 31 117,665 81

Healthcare 16 120,181 7 5 64,326 54

Industrial and 26 96,549 6 - - -warehouse

Commercial mixed use 21 41,892 3 6 3,089 7

Other 44 85,569 5 12 29,838 35

Total commercial 497 $1,630,998 100 % 132 $447,406 27 %real estate loans

Commercial &Industrial PortfolioSegmentation:

Healthcare and 262 $188,725 22 % 6 $15,384 8 %social assistance

Manufacturing 152 91,364 11 4 2,505 3

Educational services 59 73,172 9 4 7,329 10

Owner occupied and 278 71,516 8 21 5,128 7other real estate

Retail 206 67,461 8 5 2,693 4

Professional,scientific and 270 48,452 6 1 41 -technical

Accommodation and 278 45,257 5 18 12,252 27food services

Finance and 106 38,213 4 - - -insurance

Entertainment and 94 35,626 4 11 13,045 37recreation

Transportation and 46 30,208 4 5 1,414 5warehousing

Information 34 29,575 3 - - -

Public 25 23,534 3 1 98 -administration

Other 764 109,342 13 24 14,533 13

Total commercial & 2,574 $852,445 100 % 100 $74,422 9 %industrial loans

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN AND DEPOSIT COMPOSITION

(Unaudited; Dollars in thousands)

June 30, 2020 December 31, 2019

Balance % of Total Balance % of Total

Commercial Real Estate Loans byProperty Location:

Connecticut $639,961 39 % $616,484 40 %

Massachusetts 492,703 30 458,029 30

Rhode Island 420,197 26 394,929 25

Subtotal 1,552,861 95 1,469,442 95

All other states 78,137 5 78,130 5

Total commercial real estate $1,630,998 100 % $1,547,572 100 %loans

Residential Real Estate Loans byProperty Location:

Massachusetts $1,006,616 67 % $932,726 64 %

Rhode Island 349,143 23 356,392 25

Connecticut 131,856 9 140,574 10

Subtotal 1,487,615 99 1,429,692 99

All other states 20,608 1 19,398 1

Total residential real estate $1,508,223 100 % $1,449,090 100 %loans

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,

2020 2020 2019 2019 2019

Deposits:

Noninterest-bearing $815,770 $622,893 $609,924 $619,839 $587,326demand deposits

Interest-bearing 158,343 178,391 159,938 152,200 128,355demand deposits

NOW accounts 617,792 528,650 520,295 478,462 484,615

Money market 834,954 784,893 765,899 749,122 654,719accounts

Savings accounts 417,195 382,509 373,503 362,868 365,069

Time deposits 728,801 776,992 784,481 792,941 801,501(in-market)

In-market deposits 3,572,855 3,274,328 3,214,040 3,155,432 3,021,585

Wholesale brokered 528,581 431,986 284,842 430,721 483,037time deposits

Total deposits $4,101,436 $3,706,314 $3,498,882 $3,586,153 $3,504,622

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,

2020 2020 2019 2019 2019

Asset Quality Ratios:

Nonperforming assets to total 0.27 % 0.32 % 0.35 % 0.37 % 0.29 %assets

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

Total past due loans to total 0.34 % 0.40 % 0.40 % 0.38 % 0.48 %loans

Allowance for credit losses 258.73 % 221.37 % 155.18 % 181.16 % 212.93 %on loans to nonaccrual loans

Allowance for credit losses 0.97 % 0.97 % 0.69 % 0.71 % 0.73 %on loans to total loans

Nonperforming Assets:

Commercial real estate $431 $450 $603 $684 $926

Commercial & industrial - 290 657 - -

Total commercial 431 740 1,260 684 926

Residential real estate 13,850 15,423 14,297 12,531 10,610

Home equity 1,648 1,667 1,763 1,599 1,243

Other consumer 88 88 88 88 88

Total consumer 1,736 1,755 1,851 1,687 1,331

Total nonaccrual loans 16,017 17,918 17,408 14,902 12,867

Other real estate owned - 28 1,109 4,142 2,142

Total nonperforming assets $16,017 $17,946 $18,517 $19,044 $15,009

Past Due Loans (30 days ormore past due):

Commercial real estate $431 $1,275 $1,433 $684 $3,670

Commercial & industrial 3 310 1 1 1

Total commercial 434 1,585 1,434 685 3,671

Residential real estate 12,499 12,293 11,429 11,599 11,237

Home equity 1,633 2,482 2,696 1,973 2,904

Other consumer 106 115 130 99 102

Total consumer 1,739 2,597 2,826 2,072 3,006

Total past due loans $14,672 $16,475 $15,689 $14,356 $17,914

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

Nonaccrual loans included in $10,553 $11,385 $11,477 $9,797 $8,581past due loans

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

For the Three Months Ended For the Six Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,

2020 2020 2019 2019 2019 2020 2019

Nonaccrual Loan Activity:

Balance at beginning of period $17,918 $17,408 $14,902 $12,867 $12,365 $17,408 $11,707

Additions to nonaccrual status 237 1,729 2,766 5,672 1,620 1,966 3,544

Loans returned to accruing status (154) (393) - (597) (118) (547) (973)

Loans charged-off (325) (635) (132) (966) (819) (960) (922)

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

Payments, payoffs and other changes (1,659) (163) (128) (74) (181) (1,822) (489)

Balance at end of period $16,017 $17,918 $17,408 $14,902 $12,867 $16,017 $12,867

Allowance for Credit Losses on Loans:

Balance at beginning of period $39,665 $27,014 $26,997 $27,398 $27,644 $27,014 $27,072

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

Provision for credit losses on loans (1) 2,084 6,773 - 400 525 8,857 1,175

Charge-offs (326) (635) (132) (966) (819) (961) (922)

Recoveries 18 12 149 165 48 30 73

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

Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of period $2,039 $293 $317 $302 $242 $293 $289

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

Provision for credit losses on unfunded 116 263 (24) 15 60 379 13commitments (2)

Balance at end of period (3) $2,155 $2,039 $293 $317 $302 $2,155 $302

(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 Six Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,

2020 2020 2019 2019 2019 2020 2019

Net LoanCharge-Offs(Recoveries):

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

Commercial & 284 290 (15) (122) (16) 574 (10)industrial

Total 303 443 (59) 825 (16) 746 (10)commercial

Residential - - - - 486 - 486real estate

Home equity (5) 172 17 (36) 289 167 337

Other 10 8 25 12 12 18 36consumer

Total 5 180 42 (24) 301 185 373consumer

Total $308 $623 ($17) $801 $771 $931 $849

Netcharge-offsto average 0.03 % 0.06 % - % 0.08 % 0.08 % 0.04 % 0.05 %loans(annualized)

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 June 30, 2020 March 31, 2020 Quarter ChangeMonths Ended

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

Assets:

Cash, federal fundssold and short-term $187,306 $36 0.08 % $113,344 $349 1.24 % $73,962 ($313) (1.16) %investments

Mortgage loans held 53,443 440 3.31 31,087 285 3.69 22,356 155 (0.38)for sale

Taxable debt 904,792 5,477 2.43 905,293 5,833 2.59 (501) (356) (0.16)securities

FHLB stock 51,967 654 5.06 51,962 640 4.95 5 14 0.11

Commercial real 1,635,431 12,580 3.09 1,582,956 16,097 4.09 52,475 (3,517) (1.00)estate

Commercial & 791,672 6,739 3.42 607,499 6,556 4.34 184,173 183 (0.92)industrial

Total commercial 2,427,103 19,319 3.20 2,190,455 22,653 4.16 236,648 (3,334) (0.96)

Residential real 1,497,665 14,330 3.85 1,469,282 14,283 3.91 28,383 47 (0.06)estate

Home equity 282,470 2,382 3.39 285,832 3,101 4.36 (3,362) (719) (0.97)

Other 18,956 229 4.86 19,855 249 5.04 (899) (20) (0.18)

Total consumer 301,426 2,611 3.48 305,687 3,350 4.41 (4,261) (739) (0.93)

Total loans 4,226,194 36,260 3.45 3,965,424 40,286 4.09 260,770 (4,026) (0.64)

Totalinterest-earning 5,423,702 42,867 3.18 5,067,110 47,393 3.76 356,592 (4,526) (0.58)assets

Noninterest-earning 365,990 327,838 38,152assets

Total assets $5,789,692 $5,394,948 $394,744

Liabilities andShareholders'Equity:

Interest-bearing $162,388 $142 0.35 % $155,416 $500 1.29 % $6,972 ($358) (0.94) %demand deposits

NOW accounts 570,739 84 0.06 505,282 69 0.05 65,457 15 0.01

Money market 821,063 1,370 0.67 795,268 2,092 1.06 25,795 (722) (0.39)accounts

Savings accounts 403,286 67 0.07 374,374 62 0.07 28,912 5 -

Time deposits 746,750 3,507 1.89 780,355 4,049 2.09 (33,605) (542) (0.20)(in-market)

Totalinterest-bearing 2,704,226 5,170 0.77 2,610,695 6,772 1.04 93,531 (1,602) (0.27)in-market deposits

Wholesale brokered 559,822 1,942 1.40 391,822 1,764 1.81 168,000 178 (0.41)time deposits

Totalinterest-bearing 3,264,048 7,112 0.88 3,002,517 8,536 1.14 261,531 (1,424) (0.26)deposits

FHLB advances 1,068,034 4,382 1.65 1,123,754 5,765 2.06 (55,720) (1,383) (0.41)

Junior subordinated 22,681 171 3.03 22,681 213 3.78 - (42) (0.75)debentures

Other borrowings 2,565 2 0.31 - - - 2,565 2 0.31

Totalinterest-bearing 4,357,328 11,667 1.08 4,148,952 14,514 1.41 208,376 (2,847) (0.33)liabilities

Noninterest-bearing 745,050 610,872 134,178demand deposits

Other liabilities 175,563 132,000 43,563

Shareholders' 511,751 503,124 8,627equity

Total liabilitiesand shareholders' $5,789,692 $5,394,948 $394,744equity

Net interest income $31,200 $32,879 ($1,679)(FTE)

Interest rate 2.10 % 2.35 % (0.25) %spread

Net interest margin 2.31 % 2.61 % (0.30) %

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

For the Three Months Ended Jun 30, Mar 31, Quarter 2020 2020 Change

Commercial loans $254 $278 ($24)

Total $254 $278 ($24)

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Six Months June 30, 2020 June 30, 2019 ChangeEnded

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

Assets:

Cash, federal fundssold and short-term $150,325 $385 0.52 % $64,713 $739 2.30 % $85,612 ($354) (1.78) %investments

Mortgage loans for 42,265 725 3.45 22,588 468 4.18 19,677 257 (0.73)sale

Taxable debt 905,043 11,311 2.51 998,738 14,232 2.87 (93,695) (2,921) (0.36)securities

Nontaxable debt - - - 870 21 4.87 (870) (21) (4.87)securities

Total securities 905,043 11,311 2.51 999,608 14,253 2.88 (94,565) (2,942) (0.37)

FHLB stock 51,964 1,294 5.01 48,288 1,415 5.91 3,676 (121) (0.90)

Commercialmortgages

Construction &development

Commercial real 1,609,193 28,677 3.58 1,446,923 34,388 4.79 162,270 (5,711) (1.21)estate

Commercial & 699,586 13,294 3.82 612,568 15,026 4.95 87,018 (1,732) (1.13)industrial

Total commercial 2,308,779 41,971 3.66 2,059,491 49,414 4.84 249,288 (7,443) (1.18)

Residential real 1,483,473 28,613 3.88 1,354,330 27,371 4.08 129,143 1,242 (0.20)estate

Home equity 284,151 5,483 3.88 281,404 7,142 5.12 2,747 (1,659) (1.24)

Other 19,406 478 4.95 24,905 609 4.93 (5,499) (131) 0.02

Total consumer 303,557 5,961 3.95 306,309 7,751 5.10 (2,752) (1,790) (1.15)

Total loans 4,095,809 76,545 3.76 3,720,130 84,536 4.58 375,679 (7,991) (0.82)

Totalinterest-earning 5,245,406 90,260 3.46 4,855,327 101,411 4.21 390,079 (11,151) (0.75)assets

Noninterest-earning 346,914 278,714 68,200assets

Total assets $5,592,320 $5,134,041 $458,279

Liabilities andShareholders'Equity:

Interest-bearing $158,902 $642 0.81 % $147,522 $1,311 1.79 % $11,380 ($669) (0.98) %demand deposits

NOW accounts 538,010 154 0.06 458,563 159 0.07 79,447 (5) (0.01)

Money market 808,166 3,462 0.86 652,671 3,440 1.06 155,495 22 (0.20)accounts

Savings accounts 388,831 128 0.07 367,826 131 0.07 21,005 (3) -

Time deposits 763,552 7,556 1.99 793,012 7,719 1.96 (29,460) (163) 0.03(in-market)

Totalinterest-bearing 2,657,461 11,942 0.90 2,419,594 12,760 1.06 237,867 (818) (0.16)in-market deposits

Wholesale brokered 475,822 3,706 1.57 490,680 5,405 2.22 (14,858) (1,699) (0.65)time deposits

Totalinterest-bearing 3,133,283 15,648 1.00 2,910,274 18,165 1.26 223,009 (2,517) (0.26)deposits

FHLB advances 1,095,894 10,147 1.86 1,039,037 13,641 2.65 56,857 (3,494) (0.79)

Junior subordinated 22,681 384 3.40 22,681 505 4.49 - (121) (1.09)debentures

Other borrowings 1,282 2 0.31 - - - 1,282 2 0.31

Totalinterest-bearing 4,253,140 26,181 1.24 3,971,992 32,311 1.64 281,148 (6,130) (0.40)liabilities

Noninterest-bearing 677,961 607,569 70,392demand deposits

Other liabilities 153,781 89,133 64,648

Shareholders' 507,438 465,347 42,091equity

Total liabilitiesand shareholders' $5,592,320 $5,134,041 $458,279equity

Net interest income $64,079 $69,100 ($5,021)(FTE)

Interest rate 2.22 % 2.57 % (0.35) %spread

Net interest margin 2.46 % 2.87 % (0.41) %

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

For the Six Months Ended Jun 30, Jun 30, Change 2020 2019

Commercial loans $532 $654 ($122)

Nontaxable debt securities - 4 (4)

Total $532 $658 ($126)

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures

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

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,

2020 2020 2019 2019 2019

Tangible Book Value per Share:

Total shareholders' equity, as reported $520,163 $508,597 $503,492 $497,825 $484,205

Less:

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

Identifiable intangible assets, net 6,759 6,988 7,218 7,448 7,684

Total tangible shareholders' equity $449,495 $437,700 $432,365 $426,468 $412,612

Shares outstanding, as reported 17,260 17,252 17,363 17,338 17,336

Book value per share - GAAP $30.14 $29.48 $29.00 $28.71 $27.93

Tangible book value per share - Non-GAAP $26.04 $25.37 $24.90 $24.60 $23.80

Tangible Equity to Tangible Assets:

Total tangible shareholders' equity $449,495 $437,700 $432,365 $426,468 $412,612

Total assets, as reported $5,876,960 $5,620,979 $5,292,659 $5,198,878 $5,189,672

Less:

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

Identifiable intangible assets, net 6,759 6,988 7,218 7,448 7,684

Total tangible assets $5,806,292 $5,550,082 $5,221,532 $5,127,521 $5,118,079

Equity to assets - GAAP 8.85 % 9.05 % 9.51 % 9.58 % 9.33 %

Tangible equity to tangible assets - Non-GAAP 7.74 % 7.89 % 8.28 % 8.32 % 8.06 %

For the Three Months Ended For the Six Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,

2020 2020 2019 2019 2019 2020 2019

Return onAverageTangibleAssets:

Net income, $21,040 $11,901 $15,536 $18,814 $17,273 $32,941 $34,768as reported

Total averageassets, as $5,789,692 $5,394,948 $5,227,035 $5,181,016 $5,171,562 $5,592,320 $5,134,041reported

Less averagebalances of:

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

Identifiableintangible 6,871 7,100 7,330 7,562 7,800 6,985 7,919assets, net

Total averagetangible $5,718,912 $5,323,939 $5,155,796 $5,109,545 $5,099,853 $5,521,426 $5,062,213assets

Return onaverage 1.46 % 0.89 % 1.18 % 1.44 % 1.34 % 1.18 % 1.37 %assets - GAAP

Return onaveragetangible 1.48 % 0.90 % 1.20 % 1.46 % 1.36 % 1.20 % 1.39 %assets -Non-GAAP

Return onAverageTangibleEquity:

Net incomeavailable tocommon $21,000 $11,869 $15,502 $18,778 $17,238 $32,869 $34,699shareholders,as reported

Total averageequity, as $511,751 $503,124 $502,614 $490,197 $474,353 $507,438 $465,347reported

Less averagebalances of:

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

Identifiableintangible 6,871 7,100 7,330 7,562 7,800 6,985 7,919assets, net

Total averagetangible $440,971 $432,115 $431,375 $418,726 $402,644 $436,544 $393,519equity

Return onaverage 16.51 % 9.49 % 12.24 % 15.20 % 14.58 % 13.03 % 15.04 %equity - GAAP

Return onaveragetangible 19.15 % 11.05 % 14.26 % 17.79 % 17.17 % 15.14 % 17.78 %equity -Non-GAAP

Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.