PR Newswire | Jan 27, 2021 04:06PM EST

01/27 15:05 CST

Washington Trust Reports Fourth Quarter and Full-Year 2020 Earnings WESTERLY, R.I., Jan. 27, 2021

WESTERLY, R.I., Jan. 27, 2021 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced fourth quarter 2020 net income of $18.6 million, or $1.07 per diluted share, compared to net income of $18.3 million, or $1.06 per diluted share, reported for the third quarter of 2020. Net income for the year ended December 31, 2020 totaled $69.8 million, or $4.00 per diluted share, compared to $69.1 million, or $3.96 per diluted share, reported for the prior year.

"Washington Trust reported strong earnings for 2020, a year marked by unprecedented challenges, disruption, and uncertainties," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. "Our success was due to the spirit and resilience of our dedicated team of employees, who maintained high service levels and 'business as usual' operations during a major pandemic; the strength and stability of our balance sheet, which continued to provide a diverse stream of earnings during the most volatile of operating environments; and the loyalty and perseverance of our customers, who have trusted us to help them through these difficult times."

Selected financial highlights for the fourth quarter and full-year 2020 include:

* Returns on average equity and average assets for the fourth quarter were 13.96% and 1.28%, respectively, compared to 13.99% and 1.24%, respectively, in the preceding quarter. Full-year returns on average equity and average assets for 2020 were 13.51% and 1.22%, respectively, compared to 14.34% and 1.34%, respectively, in the prior year. * Mortgage banking revenues amounted to $14.1 million for the fourth quarter and totaled a record $47.4 million for the year. Full-year 2020 mortgage banking revenues were up by $32.6 million, or 220%, from a year ago. The volume of both mortgage originations and sales reached record highs in 2020. * Wealth management revenues were $9.2 million for the fourth quarter, up by $252 thousand, or 3%, from the preceding quarter. Wealth management assets under administration ("AUA") amounted to a record $6.9 billion at December 31, 2020. * Total loans amounted to $4.2 billion, up by $303.0 million, or 8%, from a year ago, largely due to origination of Paycheck Protection Program ("PPP") loans in 2020. * In-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.8 billion at December 31, 2020, up by $573 million, or 18%, from a year ago.

Net Interest IncomeNet interest income was $32.2 million for the fourth quarter of 2020, up by $589 thousand, or 2%, from the third quarter of 2020. The net interest margin was 2.39% for the fourth quarter, up by 8 basis points from the the preceding quarter. Both net interest income and the net interest margin benefited from $423 thousand, or 3 basis points, of accelerated net deferred fee amortization associated with PPP loans that were forgiven by the Small Business Association ("SBA") in the fourth quarter of 2020. Linked quarter changes included:

* Average interest-earning assets decreased by $82 million, largely due to a decrease of $71 million in average loans. The yield on interest-earning assets for the fourth quarter was 2.92%, down by 6 basis points from the preceding quarter, reflecting the impact of lower market interest rates. * Average interest-bearing liabilities decreased by $90 million, resulting from a decrease of $199 million in average wholesale funding balances, partially offset by an increase of $110 million in average in-market deposits. The cost of interest-bearing liabilities for the fourth quarter of 2020 was 0.67%, down by 18 basis points from the preceding quarter, reflecting the impact of lower market interest rates.

Noninterest IncomeNoninterest income totaled $27.7 million for the fourth quarter of 2020, up by $2.3 million, or 9%, from the third quarter of 2020. Included in other noninterest income for the fourth quarter of 2020 was a gain of $1.4 million associated with the sale of our limited partnership interest in a low-income housing tax credit investment. Excluding this gain, noninterest income totaled $26.3 million, up by $859 thousand, or 3%, from the third quarter of 2020. Other linked quarter changes included:

* Mortgage banking revenues totaled $14.1 million for the fourth quarter of 2020, up by $1.7 million, or 14%, from the third quarter of 2020, with a decrease in realized gains offset by an increase in unrealized gains. Net realized gains decreased on a linked quarter basis, reflecting lower sales volume partially offset by a higher sales yield. Mortgage loans sold to the secondary market amounted to $318 million in the fourth quarter of 2020, down by $36 million, or 10%, from the preceding quarter. Net unrealized gains increased on a linked quarter basis, reflecting an increase in the fair value of mortgage loan commitments as of December 31, 2020. Wealth management revenues amounted to $9.2 million in the fourth quarter of 2020, up by $252 thousand, or 3%, on a linked quarter basis due to an increase in asset-based revenues of $280 thousand, or 3%. * Wealth management AUA amounted to $6.9 billion at December 31, 2020, up by $471 million, or 7%, from September 30, 2020. The increase reflected net investment appreciation of $540 million, partially offset by net client asset outflows of $69 million in the fourth quarter of 2020. The average balance of AUA for the fourth quarter of 2020 increased by approximately $213 million, or 3%, from the average balance for the preceding quarter. * Loan related derivative income totaled $173 thousand in the fourth quarter of 2020, down by $1.1 million from the preceding quarter, reflecting lower volume of commercial borrower interest rate swap transactions.

Noninterest ExpenseNoninterest expense totaled $34.1 million for the fourth quarter of 2020, up by $1.8 million, or 5%, from the third quarter of 2020. Included in noninterest expense for the fourth quarter of 2020 was debt prepayment penalty expense of $1.4 million, resulting from paying off higher-yielding FHLB advances in the fourth quarter of 2020. Excluding the debt prepayment penalty expense, noninterest expense totaled $32.7 million, up by $352 thousand, or 1%, from the third quarter of 2020.

Salaries and employee benefits expense, our largest noninterest expense, amounted to $22.1 million for the fourth quarter of 2020, up by $183 thousand, or 1%, from the preceding quarter. The remaining increase in noninterest expense reflects modest changes across a variety of other noninterest expense categories, including outsourced services, legal, audit and professional fees, advertising and promotion and other expenses.

Income TaxIncome tax expense totaled $5.5 million for the fourth quarter of 2020, up by $383 thousand from the preceding quarter, largely due to a higher level of pre-tax income. The effective tax rate for the fourth quarter of 2020 was 22.9%, compared to 21.9% in the preceding quarter. Based on current federal and applicable state income statutes, the Corporation currently expects its full-year 2021 effective tax rate to be approximately 22.0%.

Investment SecuritiesThe securities portfolio totaled $895 million at December 31, 2020, down by $19 million, or 2%, from September 30, 2020, due to routine pay-downs on mortgage-backed securities and calls of debt securities. These decreases were partially offset by purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities. Fourth quarter 2020 purchases totaled $142 million, with a weighted average yield of 1.64%. Securities represented 16% of total assets at both December 31, 2020 and September 30, 2020.

LoansTotal loans amounted to $4.2 billion at December 31, 2020, down by $86 million, or 2%, from the end of the preceding quarter. Linked quarter changes included:

* Commercial loans decreased by $38 million, or 2%, from September 30, 2020. In the fourth quarter of 2020, payoffs and pay-downs amounted to approximately $105 million and included $18 million of PPP loans that were forgiven by the SBA. * Residential real estate loans decreased by $39 million, or 3%, from September 30, 2020, reflecting increased payoff and refinancing activity. * The consumer loan portfolio decreased by $9 million, or 3%, from the balance at September 30, 2020.

Deposits and BorrowingsTotal deposits amounted to $4.4 billion at December 31, 2020, up by $93 million, or 2%, from the end of the preceding quarter. Included in total deposits are out-of-market wholesale brokered time deposits, which increased by $7 million, or 1%, from September 30, 2020. Excluding wholesale brokered time deposits, in-market deposits at December 31, 2020 were up by $85 million, or 2%, from the end of the preceding quarter.

Federal Home Loan Bank advances totaled $594 million at December 31, 2020, down by $120 million from September 30, 2020. There were no Paycheck Protection Program Liquidity Facility ("PPPLF") borrowings outstanding at December 31, 2020, compared to $106 million at September 30, 2020.

Asset QualityNonperforming assets amounted to $13.2 million at December 31, 2020, down by $1.5 million from the end of the preceding quarter. Total nonaccrual loans amounted to $13.2 million, or 0.31% of total loans, at December 31, 2020, compared to $14.7 million, or 0.34% of total loans, at September 30, 2020.

Total past due loans amounted to $12.4 million, or 0.30% of total loans, at December 31, 2020, compared to $10.4 million, or 0.24% of total loans, at September 30, 2020. The $2.0 million increase in past due loans was concentrated in residential real estate loans.

Total troubled debt restructured ("TDR") loans amounted to $15.7 million as of December 31, 2020, up by $7.1 million from September 30, 2020, largely due to restructurings of two commercial and industrial loan relationships that did not qualify for TDR accounting relief.

The allowance for credit losses ("ACL") on loans amounted to $44.1 million, or 1.05% of total loans, at December 31, 2020, compared to $42.6 million, or 1.00% of total loans, at September 30, 2020. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.4 million at December 31, 2020 as compared to $2.2 million, at September 30, 2020.

In the fourth quarter of 2020, a provision for credit losses of $1.8 million was charged to earnings, compared to $1.3 million in the preceding quarter. In the fourth quarter of 2020, net charge-offs of $118 thousand were recognized, compared to $96 thousand in the preceding quarter.

Capital and DividendsTotal shareholders' equity was $534.2 million at December 31, 2020, up by $6.5 million from September 30, 2020. This increase included net income of $18.6 million, which was partially offset by $9.1 million in dividend declarations and a charge of $3.9 million to the accumulated other comprehensive income component of shareholders' equity associated with the annual remeasurement of pension plan liabilities. This charge was largely due to a decline in the discount rate used to measure the present value of pension plan liabilities as a result of a reduction in market interest rates in 2020.

Capital levels at December 31, 2020 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.51% at December 31, 2020, compared to 13.09% at September 30, 2020.

Book value per share amounted to $30.94 at December 31, 2020, compared to $30.57 at September 30, 2020.

The Board of Directors declared a quarterly dividend of 52 cents per share for the quarter ended December 31, 2020, representing an increase of 1 cent per share from the preceding quarter. The dividend was paid on January 8, 2021 to shareholders of record on January 4, 2021.

Conference CallWashington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 28, 2021 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 10151312; the audio replay will be available through February 4, 2021. 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 March 31, 2021.

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; 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)



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

Assets:

Cash and due from $194,143 $204,113 $215,601 $178,678 $132,193 banks

Short-term 8,125 7,902 7,739 6,591 6,262 investments

Mortgage loans held for sale, at fair 61,614 68,095 43,997 49,751 27,833 value

Available for sale debt securities, at894,571 913,850 938,446 917,392 899,490 fair value

Federal Home Loan 30,285 37,469 50,017 53,576 50,853 Bank stock, at cost

Loans:

Total loans 4,195,990 4,282,047 4,287,641 4,090,396 3,892,999

Less: allowance for credit losses on 44,106 42,645 41,441 39,665 27,014 loans

Net loans 4,151,884 4,239,402 4,246,200 4,050,731 3,865,985

Premises and 28,870 27,711 28,067 28,543 28,700 equipment, net

Operating lease 29,521 29,861 27,022 26,098 26,792 right-of-use assets

Investment in bank-owned life 84,193 83,623 83,056 83,053 82,490 insurance

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

Identifiable intangible assets, 6,305 6,530 6,759 6,988 7,218 net

Other assets 159,749 167,327 166,147 155,669 100,934

Total assets $5,713,169$5,849,792$5,876,960$5,620,979$5,292,659

Liabilities:

Deposits:

Noninterest-bearing$832,287 $840,444 $815,770 $622,893 $609,924 deposits

Interest-bearing 3,546,066 3,445,249 3,285,666 3,083,421 2,888,958 deposits

Total deposits 4,378,353 4,285,693 4,101,436 3,706,314 3,498,882

Federal Home Loan 593,859 713,868 1,005,051 1,198,534 1,141,464 Bank advances

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

Junior subordinated22,681 22,681 22,681 22,681 22,681 debentures

Operating lease 31,717 32,012 29,125 28,184 28,861 liabilities

Other liabilities 152,364 162,099 159,604 156,669 97,279

Total liabilities 5,178,974 5,322,099 5,356,797 5,112,382 4,789,167

Shareholders' Equity:

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

Paid-in capital 125,610 124,768 123,684 123,167 123,281

Retained earnings 418,246 408,773 399,386 387,243 390,363

Accumulated other comprehensive (7,391) (3,403) (462) 929 (11,237) income (loss)

Treasury stock, at (3,355) (3,530) (3,530) (3,827) - cost

Total shareholders'534,195 527,693 520,163 508,597 503,492 equity

Total liabilities and shareholders' $5,713,169$5,849,792$5,876,960$5,620,979$5,292,659equity

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 Twelve Months Ended

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

Interest income:

Interest and fees on $34,487$34,925$36,005$40,008$40,079$145,425$165,519loans

Interest on mortgage 569 468 440 285 359 1,762 1,237 loans held for sale

Taxable interest on 3,869 4,870 5,477 5,834 5,817 20,050 26,367 debt securities

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

Dividends on Federal Home414 532 654 640 693 2,240 2,855 Loan Bank stock

Other interest 35 39 36 349 435 459 1,667 income

Total interest and39,374 40,834 42,612 47,116 47,383 169,936 197,663 dividend income

Interest expense:

Deposits 4,632 5,532 7,112 8,536 9,144 25,812 37,101

Federal Home Loan Bank 2,305 3,354 4,382 5,765 6,015 15,806 26,168 advances

Junior subordinated122 135 171 213 230 641 980 debentures

Other interest 72 159 2 - - 233 - expense

Total interest 7,131 9,180 11,667 14,514 15,389 42,492 64,249 expense

Net interest32,243 31,654 30,945 32,602 31,994 127,444 133,414 income

Provision for credit 1,781 1,325 2,200 7,036 - 12,342 1,575 losses

Net interest income after provision 30,462 30,329 28,745 25,566 31,994 115,102 131,839 for credit losses

Noninterest income:

Wealth management 9,206 8,954 8,605 8,689 8,894 35,454 36,848 revenues

Mortgage banking 14,077 12,353 14,851 6,096 3,669 47,377 14,795 revenues

Card interchange 1,148 1,161 1,031 947 1,100 4,287 4,214 fees

Service charges on 767 598 517 860 941 2,742 3,684 deposit accounts

Loan related derivative 173 1,264 99 2,455 1,116 3,991 3,993 income

Income from bank-owned 569 567 791 564 570 2,491 2,354 life insurance

Net realized gains - - - - 27 - (53) (losses) on securities

Other income1,787 571 426 316 301 3,100 1,245

Total noninterest 27,727 25,468 26,320 19,927 16,618 99,442 67,080 income

Noninterest expense:

Salaries and employee 22,075 21,892 19,464 19,468 18,374 82,899 72,761 benefits

Outsourced 2,950 3,160 2,784 3,000 2,752 11,894 10,598 services

Net 2,083 2,012 1,909 2,019 1,986 8,023 7,821 occupancy

Equipment 1,025 934 895 977 996 3,831 4,081

Legal, audit and 1,014 1,252 659 822 692 3,747 2,535 professional fees

FDIC deposit insurance 330 392 674 422 109 1,818 618 costs

Advertising and 640 384 186 259 402 1,469 1,534 promotion

Amortization of 226 228 230 230 229 914 943 intangibles

Debt prepayment 1,413 - - - - 1,413 - penalties

Other 2,353 2,090 1,677 3,256 3,215 9,376 9,849 expenses

Total noninterest 34,109 32,344 28,478 30,453 28,755 125,384 110,740 expense

Income before 24,080 23,453 26,587 15,040 19,857 89,160 88,179 income taxes

Income tax 5,514 5,131 5,547 3,139 4,321 19,331 19,061 expense

Net income $18,566$18,322$21,040$11,901$15,536$69,829 $69,118



Net income available to$18,524$18,285$21,000$11,869$15,502$69,678 $68,979 common shareholders



Weighted average common shares outstanding:

Basic 17,264 17,260 17,257 17,345 17,351 17,282 17,331

Diluted 17,360 17,317 17,292 17,441 17,436 17,402 17,414

Earnings per common share:

Basic $1.07 $1.06 $1.22 $0.68 $0.89 $4.03 $3.98

Diluted $1.07 $1.06 $1.21 $0.68 $0.89 $4.00 $3.96



Cash dividends $0.52 $0.51 $0.51 $0.51 $0.51 $2.05 $2.00 declared per share

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

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



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

Share and Equity Related Data:

Book value per share $30.94 $30.57 $30.14 $29.48 $29.00

Tangible book value per share - $26.87 $26.49 $26.04 $25.37 $24.90 Non-GAAP (1)

Market value per share $44.80 $30.66 $32.75 $36.56 $53.79

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

Shares outstanding at end of 17,265 17,260 17,260 17,252 17,363 period



Capital Ratios (2):

Tier 1 risk-based capital 12.61 %12.23 %11.95 %11.62 %12.23 %

Total risk-based capital 13.51 %13.09 %12.78 %12.42 %12.94 %

Tier 1 leverage ratio 8.95 %8.77 %8.42 %8.77 %9.04 %

Common equity tier 1 12.06 %11.69 %11.40 %11.08 %11.65 %



Balance Sheet Ratios:

Equity to assets 9.35 %9.02 %8.85 %9.05 %9.51 %

Tangible equity to tangible 8.22 %7.91 %7.74 %7.89 %8.28 %assets - Non-GAAP (1)

Loans to deposits (3) 96.2 %100.5 %104.6 %110.6 %111.3 %

For the Twelve Months Ended For the Three Months Ended

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

Performance Ratios (4):

Net interest margin 2.39 %2.31 %2.31 %2.61 %2.61 %2.40 %2.77 %(5)

Return on average assets (net income 1.28 %1.24 %1.46 %0.89 %1.18 %1.22 %1.34 %divided by average assets)

Return on average tangible assets - 1.30 %1.26 %1.48 %0.90 %1.20 %1.24 %1.36 %Non-GAAP (1)

Return on average equity (net income available for common13.96%13.99%16.51%9.49 %12.24%13.51%14.34%shareholders divided by average equity)

Return on average tangible equity - 16.10%16.19%19.15%11.05%14.26%15.66%16.85%Non-GAAP (1)

Efficiency ratio (6)56.9 %56.6 %49.7 %58.0 %59.2 %55.3 %55.2 %

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

(2) Estimated for December 31, 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 Twelve Months Ended

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

Wealth Management Results

Wealth Management Revenues:

Asset-based $9,066 $8,786 $8,156 $8,355 $8,731 $34,363 $35,806 revenues

Transaction-based140 168 449 334 163 1,091 1,042 revenues

Total wealth management $9,206 $8,954 $8,605 $8,689 $8,894 $35,454 $36,848 revenues



Assets Under Administration (AUA):

Balance at beginning of $6,395,652$6,138,845$5,337,733$6,235,801$6,126,327$6,235,801$5,910,814period

Net investment appreciation 540,189 335,209 671,602 (772,735) 310,766 774,265 1,119,826 (depreciation) & income

Net client asset inflows (69,104) (78,402) 129,510 (125,333) (243,175) (143,329) (836,722) (outflows)

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

Balance at end of$6,866,737$6,395,652$6,138,845$5,337,733$6,235,801$6,866,737$6,235,801period



Percentage of AUA that are managed 91% 90% 90% 89% 90% 91% 90% assets



Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net $13,394 $14,280 $10,646 $3,688 $4,608 $42,008 $13,978 (2)

Unrealized gains 813 (1,555) 4,415 2,325 (1,025) 5,998 354 (losses), net (3)

Loan servicing fee income, net (130) (372) (210) 83 86 (629) 463 (4)

Total mortgage $14,077 $12,353 $14,851 $6,096 $3,669 $47,377 $14,795 banking revenues



Residential Mortgage Loan Originations:

Originations for retention in $134,002 $132,726 $126,894 $108,498 $120,882 $502,120 $347,390 portfolio

Originations for sale to secondary312,226 377,137 299,321 183,222 160,175 1,171,906 598,103 market (5)

Total mortgage $446,228 $509,863 $426,215 $291,720 $281,057 $1,674,026$945,493 loan originations



Residential Mortgage Loans Sold:

Sold with servicing rights $240,104 $317,920 $246,945 $44,498 $42,612 $849,467 $96,160 retained

Sold with servicing rights 78,072 36,250 58,279 117,693 134,091 290,294 495,012 released (5)

Total mortgage $318,176 $354,170 $305,224 $162,191 $176,703 $1,139,761$591,172 loans 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 COMPOSITION

(Unaudited; Dollars in thousands)



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

Loans:

Commercial real $1,633,024$1,665,745$1,630,998$1,618,020$1,547,572estate (1)

Commercial & 817,408 822,269 852,445 655,157 585,289 industrial

Total commercial 2,450,432 2,488,014 2,483,443 2,273,177 2,132,861



Residential real 1,467,312 1,506,726 1,508,223 1,510,472 1,449,090 estate (2)



Home equity 259,185 268,551 277,632 287,134 290,874

Other 19,061 18,756 18,343 19,613 20,174

Total consumer 278,246 287,307 295,975 306,747 311,048

Total loans $4,195,990$4,282,047$4,287,641$4,090,396$3,892,999

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.

December 31, 2020 December 31, 2019

Count Balance % of CountBalance % of Total Total

Commercial Real Estate Portfolio Segmentation:

Multi-family dwelling 137 $524,874 32 %123 $430,502 28 %

Retail 136 339,569 21 110 314,661 20

Office 73 290,756 18 78 294,910 19

Hospitality 40 157,720 10 32 128,867 8

Healthcare 15 109,321 7 16 110,409 7

Industrial and warehouse 28 97,055 6 25 82,432 5

Commercial mixed use 22 42,405 2 48 73,895 5

Other 38 71,324 4 70 111,896 8

Commercial real estate 489 $1,633,024100 %502 $1,547,572100 %loans



Commercial & Industrial Portfolio Segmentation:

Healthcare and social 253 $200,217 24 %86 $138,857 24 %assistance

Manufacturing 146 88,802 11 65 53,561 9

Owner occupied and other 268 74,309 9 157 46,033 8 real estate

Educational services 53 64,969 8 22 56,556 10

Retail 192 63,895 8 75 43,386 7

Accommodation and food 271 47,020 6 64 16,562 3 services

Professional, scientific 265 39,295 5 66 37,599 6 and technical

Entertainment and 91 29,415 4 35 30,807 5 recreation

Information 32 28,394 3 11 22,162 4

Finance and insurance 106 26,244 3 57 28,501 5

Transportation and 42 24,061 3 23 20,960 4 warehousing

Public administration 26 23,319 3 23 25,107 4

Other 772 107,468 13 225 65,198 11

Commercial & industrial 2,517$817,408 100 %909 $585,289 100 %loans

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION

(Unaudited; Dollars in thousands)



December 31, 2020 January 21, 2021

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

Loan Deferments by Portfolio:

Commercial Real Estate Deferments by Segment:

Hospitality 20 $83,073 53 % 16 $69,529 44 %

Retail 5 39,781 12 3 20,600 6

Healthcare 2 22,305 20 2 22,345 20

Office 2 2,457 1 2 2,457 1

Commercial mixed use 1 637 2 - - -

Multi-family dwelling1 364 - 1 364 -

Other 7 27,785 39 7 27,786 39

Subtotal - commercial real estate 38 176,402 11 31 143,081 9 deferments

Commercial & Industrial Deferments by Segment:

Healthcare and social5 19,620 13 5 19,702 13 assistance

Accommodation and 2 2,889 12 2 2,889 12 food services

Transportation and 4 1,120 5 4 1,120 5 warehousing

Manufacturing 2 947 1 2 947 1

Entertainment and 3 560 2 3 557 2 recreation

Owner occupied and 1 326 1 1 326 1 other real estate

Other 4 7,673 12 4 7,676 12

Subtotal - commercial & industrial 21 33,135 5 21 33,217 5 deferments

Total commercial 59 209,537 9 52 176,298 8 deferments

Residential real 66 34,049 2 52 26,404 2 estate deferments

Consumer deferments 11 1,110 - 10 715 -

Total loan deferments136 $244,6966 % 114 $203,4175 %

(1) Percent of respective outstanding portfolio segment balance, excluding PPP loans, as of December 31, 2020.

December 31, 2020

Count Balance % of Total

PPP Loans By Industry:

Healthcare and social assistance 173 $47,354 24 %

Accommodation and food services 209 23,678 12

Manufacturing 89 23,321 12

Professional, scientific and technical 220 20,031 10

Retail 134 12,107 6

Educational services 32 9,681 5

Owner occupied and other real estate 115 9,241 5

Entertainment and recreation 61 3,386 2

Information 20 2,478 1

Transportation and warehousing 21 2,059 1

Finance and insurance 55 2,000 1

Public administration 4 483 -

Other 573 43,961 21

Total PPP loans (included in the commercial & 1,706$199,780100 %industrial loan portfolio)



Average PPP loan size $117

Net unamortized fees on PPP loans $3,893

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN AND DEPOSIT COMPOSITION

(Unaudited; Dollars in thousands)



December 31, 2020 December 31, 2019

Balance % of Balance % of Total Total

Commercial Real Estate Loans by Property Location:

Connecticut $649,919 40 %$616,484 40 %

Massachusetts 468,947 29 458,029 30

Rhode Island 431,133 26 394,929 25

Subtotal 1,549,999 95 1,469,442 95

All other states 83,025 5 78,130 5

Total commercial real estate loans $1,633,024100 %$1,547,572100 %



Residential Real Estate Loans by Property Location:

Massachusetts $994,800 68 %$932,726 64 %

Rhode Island 331,713 23 356,392 25

Connecticut 122,102 8 140,574 10

Subtotal 1,448,615 99 1,429,692 99

All other states 18,697 1 19,398 1

Total residential real estate loans $1,467,312100 %$1,449,090100 %

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

Deposits:

Noninterest-bearing$832,287 $840,444 $815,770 $622,893 $609,924 demand deposits

Interest-bearing 174,290 170,198 158,343 178,391 159,938 demand deposits

NOW accounts 698,706 644,909 617,792 528,650 520,295

Money market 910,167 877,536 834,954 784,893 765,899 accounts

Savings accounts 466,507 439,383 417,195 382,509 373,503

Time deposits 704,855 729,058 728,801 776,992 784,481 (in-market)

In-market deposits 3,786,812 3,701,528 3,572,855 3,274,328 3,214,040

Wholesale brokered 591,541 584,165 528,581 431,986 284,842 time deposits

Total deposits $4,378,353$4,285,693$4,101,436$3,706,314$3,498,882

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)



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

Asset Quality Ratios:

Nonperforming assets to 0.23 %0.25 %0.27 %0.32 %0.35 %total assets

Nonaccrual loans to total 0.31 %0.34 %0.37 %0.44 %0.45 %loans

Total past due loans to 0.30 %0.24 %0.34 %0.40 %0.40 %total loans

Allowance for credit losses on loans to nonaccrual 334.21 %289.31 %258.73 %221.37 %155.18 %loans

Allowance for credit losses1.05 %1.00 %0.97 %0.97 %0.69 %on loans to total loans



Nonperforming Assets:

Commercial real estate $- $431 $431 $450 $603

Commercial & industrial - - - 290 657

Total commercial - 431 431 740 1,260

Residential real estate 11,981 12,792 13,850 15,423 14,297

Home equity 1,128 1,429 1,648 1,667 1,763

Other consumer 88 88 88 88 88

Total consumer 1,216 1,517 1,736 1,755 1,851

Total nonaccrual loans 13,197 14,740 16,017 17,918 17,408

Other real estate owned - - - 28 1,109

Total nonperforming assets $13,197 $14,740 $16,017 $17,946 $18,517



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

Commercial real estate $265 $431 $431 $1,275 $1,433

Commercial & industrial 3 21 3 310 1

Total commercial 268 452 434 1,585 1,434

Residential real estate 10,339 8,081 12,499 12,293 11,429

Home equity 1,667 1,753 1,633 2,482 2,696

Other consumer 118 108 106 115 130

Total consumer 1,785 1,861 1,739 2,597 2,826

Total past due loans $12,392 $10,394 $14,672 $16,475 $15,689



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

Nonaccrual loans included $8,521 $8,799 $10,553 $11,385 $11,477 in past due loans



Troubled Debt Restructurings:

Accruing TDRs $13,340 $5,709 $5,473 $373 $376

Nonaccrual TDRs 2,345 2,894 998 490 492

Total TDRs $15,685 $8,603 $6,471 $863 $868

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

For the Three Months Ended For the Twelve Months Ended

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

Nonaccrual Loan Activity:

Balance at beginning of $14,740$16,017$17,918$17,408$14,902$17,408$11,707period

Additions to nonaccrual 707 971 237 1,729 2,766 3,644 11,982 status

Loans returned to (1,112)(1,623)(154) (393) - (3,282)(1,570)accruing status

Loans (246) (111) (325) (635) (132) (1,317)(2,020)charged-off

Loans transferred (285) - - (28) - (313) (2,000)to other real estate owned

Payments, payoffs and (607) (514) (1,659)(163) (128) (2,943)(691) other changes

Balance at $13,197$14,740$16,017$17,918$17,408$13,197$17,408end of period



Allowance for Credit Losses on Loans:

Balance at beginning of $42,645$41,441$39,665$27,014$26,997$27,014$27,072period

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

Provision for credit losses1,579 1,300 2,084 6,773 - 11,736 1,575 on loans (1)

Charge-offs (245) (111) (326) (635) (132) (1,317)(2,020)

Recoveries 127 15 18 12 149 172 387

Balance at $44,106$42,645$41,441$39,665$27,014$44,106$27,014end of period



Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of $2,180 $2,155 $2,039 $293 $317 $293 $293 period

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

Provision for credit losses on unfunded 202 25 116 263 (24) 606 1,427 commitments (2)

Balance at end of period$2,382 $2,180 $2,155 $2,039 $293 $2,382 $1,720 (3)

(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 each period in 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 Twelve Months Ended

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

Net Loan Charge-Offs (Recoveries):

Commercial real estate$133 $- $19 $153 ($44) $305 $903

Commercial & (12) - 284 290 (15) 562 (147) industrial

Total commercial 121 - 303 443 (59) 867 756

Residential real (20) 99 - - - 79 486 estate

Home equity 9 (4) (5) 172 17 172 318

Other consumer 8 1 10 8 25 27 73

Total consumer 17 (3) 5 180 42 199 391

Total $118 $96 $308 $623 ($17) $1,145 $1,633



Net charge-offs to average loans 0.01%0.01%0.03%0.06%- %0.03 %0.04 %(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 December 31, 2020 September 30, 2020 Quarter Change Months Ended

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

Assets:

Cash, federal funds sold and short-term$172,731 $35 0.08%$168,106 $39 0.09%$4,625 ($4) (0.01)%investments

Mortgage loans held71,113 569 3.18 61,043 468 3.05 10,070 101 0.13 for sale

Taxable debt 892,112 3,869 1.73 906,977 4,870 2.14 (14,865) (1,001)(0.41) securities

FHLB stock 33,320 414 4.94 43,839 532 4.83 (10,519) (118) 0.11

Commercial real 1,658,809 11,905 2.86 1,652,136 11,649 2.81 6,673 256 0.05 estate

Commercial & 818,611 7,174 3.49 849,452 6,920 3.24 (30,841) 254 0.25 industrial

Total commercial 2,477,420 19,079 3.06 2,501,588 18,569 2.95 (24,168) 510 0.11

Residential real 1,475,699 13,206 3.56 1,510,621 14,047 3.70 (34,922) (841) (0.14) estate

Home equity 264,811 2,229 3.35 276,221 2,320 3.34 (11,410) (91) 0.01

Other 18,209 226 4.94 18,706 237 5.04 (497) (11) (0.10)

Total consumer 283,020 2,455 3.45 294,927 2,557 3.45 (11,907) (102) -

Total loans 4,236,139 34,740 3.26 4,307,136 35,173 3.25 (70,997) (433) 0.01

Total interest-earning 5,405,415 39,627 2.92 5,487,101 41,082 2.98 (81,686) (1,455)(0.06) assets

Noninterest-earning362,848 377,348 (14,500) assets

Total assets $5,768,263 $5,864,449 ($96,186)

Liabilities and Shareholders' Equity:

Interest-bearing $161,664 $81 0.20%$157,986 $83 0.21%$3,678 ($2) (0.01)%demand deposits

NOW accounts 664,055 115 0.07 631,148 99 0.06 32,907 16 0.01

Money market 903,607 963 0.42 839,032 977 0.46 64,575 (14) (0.04) accounts

Savings accounts 455,933 70 0.06 428,781 67 0.06 27,152 3 -

Time deposits 711,838 2,566 1.43 730,464 3,015 1.64 (18,626) (449) (0.21) (in-market)

Total interest-bearing 2,897,097 3,795 0.52 2,787,411 4,241 0.61 109,686 (446) (0.09) in-market deposits

Wholesale brokered 589,272 837 0.57 463,756 1,291 1.11 125,516 (454) (0.54) time deposits

Total interest-bearing 3,486,369 4,632 0.53 3,251,167 5,532 0.68 235,202 (900) (0.15) deposits

FHLB advances 634,081 2,305 1.45 860,758 3,354 1.55 (226,677)(1,049)(0.10)

Junior subordinated22,681 122 2.14 22,681 135 2.37 - (13) (0.23) debentures

PPPLF borrowings 81,858 72 0.35 180,128 159 0.35 (98,270) (87) -

Total interest-bearing 4,224,989 7,131 0.67 4,314,734 9,180 0.85 (89,745) (2,049)(0.18) liabilities

Noninterest-bearing838,713 842,949 (4,236) demand deposits

Other liabilities 176,592 186,981 (10,389)

Shareholders' 527,969 519,785 8,184 equity

Total liabilities and shareholders' $5,768,263 $5,864,449 ($96,186) equity

Net interest income $32,496 $31,902 $594 (FTE)

Interest rate 2.25% 2.13% 0.12 %spread

Net interest margin 2.39% 2.31% 0.08 %

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

For the Three Months EndedDec 31, 2020Sep 30, 2020Quarter Change

Commercial loans $253 $248 $5

Total $253 $248 $5



Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Twelve December 31, 2020 December 31, 2019 Change Months Ended

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

Assets:

Cash, federal funds sold and short-term$160,427 $459 0.29%$85,447 $1,667 1.95%$74,980 ($1,208)(1.66)%investments

Mortgage loans for 54,237 1,762 3.25 30,928 1,237 4.00 23,309 525 (0.75) sale

Taxable debt 902,278 20,050 2.22 947,875 26,367 2.78 (45,597)(6,317) (0.56) securities

Nontaxable debt - - - 450 23 5.11 (450) (23) (5.11) securities

Total securities 902,278 20,050 2.22 948,325 26,390 2.78 (46,047)(6,340) (0.56)

FHLB stock 45,235 2,240 4.95 47,761 2,855 5.98 (2,526) (615) (1.03)

Commercial real 1,632,460 52,231 3.20 1,481,116 68,193 4.60 151,344 (15,962)(1.40) estate

Commercial & 767,176 27,410 3.57 596,451 28,545 4.79 170,725 (1,135) (1.22) industrial

Total commercial 2,399,636 79,641 3.32 2,077,567 96,738 4.66 322,069 (17,097)(1.34)

Residential real 1,488,343 55,866 3.75 1,368,824 54,932 4.01 119,519 934 (0.26) estate

Home equity 277,296 10,032 3.62 286,767 14,011 4.89 (9,471) (3,979) (1.27)

Other 18,929 941 4.97 23,153 1,137 4.91 (4,224) (196) 0.06

Total consumer 296,225 10,973 3.70 309,920 15,148 4.89 (13,695)(4,175) (1.19)

Total loans 4,184,204 146,480 3.50 3,756,311 166,818 4.44 427,893 (20,338)(0.94)

Total interest-earning 5,346,381 170,991 3.20 4,868,772 198,967 4.09 477,609 (27,976)(0.89) assets

Noninterest-earning358,569 300,549 58,020 assets

Total assets $5,704,950 $5,169,321 $535,629

Liabilities and Shareholders' Equity:

Interest-bearing $159,366 $806 0.51%$144,836 $2,537 1.75%$14,530 ($1,731)(1.24)%demand deposits

NOW accounts 593,105 368 0.06 469,540 310 0.07 123,565 58 (0.01)

Money market 839,915 5,402 0.64 693,921 7,713 1.11 145,994 (2,311) (0.47) accounts

Savings accounts 415,741 265 0.06 365,927 272 0.07 49,814 (7) (0.01)

Time deposits 742,236 13,138 1.77 794,124 16,056 2.02 (51,888)(2,918) (0.25) (in-market)

Total interest-bearing 2,750,363 19,979 0.73 2,468,348 26,888 1.09 282,015 (6,909) (0.36) in-market deposits

Wholesale brokered 501,306 5,833 1.16 461,862 10,213 2.21 39,444 (4,380) (1.05) time deposits

Total interest-bearing 3,251,669 25,812 0.79 2,930,210 37,101 1.27 321,459 (11,289)(0.48) deposits

FHLB advances 920,704 15,806 1.72 1,015,914 26,168 2.58 (95,210)(10,362)(0.86)

Junior subordinated22,681 641 2.83 22,681 980 4.32 - (339) (1.49) debentures

PPPLF borrowings 66,492 233 0.35 - - - 66,492 233 0.35

Total interest-bearing 4,261,546 42,492 1.00 3,968,805 64,249 1.62 292,741 (21,757)(0.62) liabilities

Noninterest-bearing759,841 615,049 144,792 demand deposits

Other liabilities 167,861 104,463 63,398

Shareholders' 515,702 481,004 34,698 equity

Total liabilities and shareholders' $5,704,950 $5,169,321 $535,629 equity

Net interest income $128,499 $134,718 ($6,219) (FTE)

Interest rate 2.20% 2.47% (0.27)%spread

Net interest margin 2.40% 2.77% (0.37)%

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

For the Twelve Months EndedDec 31, 2020Dec 31, 2019Change

Commercial loans $1,055 $1,299 ($244)

Nontaxable debt securities - 5 (5)

Total $1,055 $1,304 ($249)

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures

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



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

Tangible Book Value per Share:

Total shareholders'$534,195 $527,693 $520,163 $508,597 $503,492 equity, as reported

Less:

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

Identifiable intangible 6,305 6,530 6,759 6,988 7,218 assets, net

Total tangible $463,981 $457,254 $449,495 $437,700 $432,365 shareholders' equity



Shares outstanding, 17,265 17,260 17,260 17,252 17,363 as reported



Book value per share - $30.94 $30.57 $30.14 $29.48 $29.00 GAAP

Tangible book value per $26.87 $26.49 $26.04 $25.37 $24.90 share - Non-GAAP



Tangible Equity to Tangible Assets:

Total tangible $463,981 $457,254 $449,495 $437,700 $432,365 shareholders' equity



Total assets,$5,713,169 $5,849,792 $5,876,960 $5,620,979 $5,292,659 as reported

Less:

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

Identifiable intangible 6,305 6,530 6,759 6,988 7,218 assets, net

Total tangible $5,642,955 $5,779,353 $5,806,292 $5,550,082 $5,221,532 assets



Equity to 9.35 %9.02 %8.85 %9.05 %9.51 %assets - GAAP

Tangible equity to tangible 8.22 %7.91 %7.74 %7.89 %8.28 %assets - Non-GAAP

For the Three Months Ended For the Twelve Months Ended

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

Return on Average Tangible Assets:

Net income, $18,566 $18,322 $21,040 $11,901 $15,536 $69,829 $69,118 as reported



Total average assets, as $5,768,263 $5,864,449 $5,789,692 $5,394,948 $5,227,035 $5,704,950 $5,169,321 reported

Less average balances of:

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

Identifiable intangible 6,414 6,641 6,871 7,100 7,330 6,755 7,681 assets, net

Total average tangible $5,697,940 $5,793,899 $5,718,912 $5,323,939 $5,155,796 $5,634,286 $5,097,731 assets



Return on average 1.28 %1.24 %1.46 %0.89 %1.18 %1.22 %1.34 %assets - GAAP

Return on average tangible 1.30 %1.26 %1.48 %0.90 %1.20 %1.24 %1.36 %assets - Non-GAAP



Return on Average Tangible Equity:

Net income available to common $18,524 $18,285 $21,000 $11,869 $15,502 $69,678 $68,979 shareholders, as reported



Total average equity, as $527,969 $519,785 $511,751 $503,124 $502,614 $515,702 $481,004 reported

Less average balances of:

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

Identifiable intangible 6,414 6,641 6,871 7,100 7,330 6,755 7,681 assets, net

Total average tangible $457,646 $449,235 $440,971 $432,115 $431,375 $445,038 $409,414 equity



Return on average 13.96 %13.99 %16.51 %9.49 %12.24 %13.51 %14.34 %equity - GAAP

Return on average tangible 16.10 %16.19 %19.15 %11.05 %14.26 %15.66 %16.85 %equity - Non-GAAP

Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.