PR Newswire | Jan 26, 2022 04:06PM EST

01/26 15:05 CST

Washington Trust Reports Fourth Quarter and Full-Year 2021 Earnings WESTERLY, R.I., Jan. 26, 2022

WESTERLY, R.I., Jan. 26, 2022 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced fourth quarter 2021 net income of $20.2 million, or $1.15 per diluted share, compared to net income of $18.8 million, or $1.07 per diluted share, for the third quarter of 2021. Net income for the year ended December 31, 2021 totaled $76.9 million, or $4.39 per diluted share, compared to $69.8 million, or $4.00 per diluted share, reported for the prior year.

"Washington Trust reported strong fourth quarter and full-year 2021 results," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. "We achieved record wealth management revenues, originated an all-time high volume of residential mortgages, reached a record level of in-market deposits and maintained healthy commercial loan activity. Solid business line performances and a strong balance sheet have positioned us well as we enter 2022."

Selected financial highlights for the fourth quarter and full-year 2021 include:

* Returns on average equity and average assets for the fourth quarter were 14.34% and 1.36%, respectively, compared to 13.37% and 1.26%, respectively, for the preceding quarter. Full-year returns on average equity and average assets for 2021 were 14.03% and 1.32%, respectively, compared to 13.51% and 1.22%, respectively, for the prior year. * A negative provision for credit losses (or a benefit) of $2.8 million was recognized in earnings in the fourth quarter of 2021, compared to no provision for credit losses in the preceding quarter. For the full-year 2021, a negative provision for credit losses (or a benefit) of $4.8 million was recognized in earnings, compared to a positive provision for credit losses (or a charge) of $12.3 million in 2020. * Wealth management assets under administration ("AUA") amounted to an all-time high $7.8 billion at December 31, 2021. Fourth quarter and full-year wealth management revenues reached record highs of $10.5 million and $41.3 million, respectively. * Residential real estate loan originations totaled $363 million in the fourth quarter, bringing the full-year residential loan origination total to an all-time high of $1.69 billion. * Total loans excluding Paycheck Protection Program ("PPP") loans amounted to $4.2 billion, up by $26 million, or 1%, from the end of the preceding quarter and up by $256 million, or 6%, from a year ago. * In-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to a record $4.5 billion at December 31, 2021, up by $162 million, or 4%, from the end of the preceding quarter, and up by $678 million, or 18%, from a year ago.

Net Interest Income

Net interest income was $37.7 million for the fourth quarter of 2021, up by $1.7 million, or 5%, from the third quarter of 2021. The net interest margin was 2.71% for the fourth quarter, up by 13 basis points from the preceding quarter. Both net interest income and the net interest margin benefited from commercial loan prepayment fee income, as well as accelerated net deferred fee amortization associated with PPP loans that were forgiven by the Small Business Administration. Commercial loan prepayment fee income amounted to $2.2 million, or 16 basis points, in the fourth quarter of 2021. There was no commercial loan prepayment fee income in the preceding quarter. In the fourth quarter of 2021, accelerated net deferred fee amortization on PPP loans amounted to $1.2 million, or 9 basis points, compared to $2.0 million, or 13 basis points, in the preceding quarter. Excluding the impact of these items for both periods, the net interest margin was 2.46% in the fourth quarter of 2021, up from 2.45% in the preceding quarter. Linked quarter changes included:

* Average interest-earning assets decreased by $8 million, largely reflecting a decline in average loan balances, partially offset by increases in average investment securities and cash and due from banks balances. The yield on interest-earning assets for the fourth quarter was 2.97%, up by 12 basis points from the preceding quarter. Excluding the impact of commercial loan prepayment fee income and accelerated net deferred fee amortization on PPP loans for both periods, the yield on interest-earning assets was essentially unchanged. * Average interest-bearing liabilities decreased by $54 million, due to a decrease of $257 million in average wholesale funding balances, partially offset by an increase of $203 million in average in-market deposits. The cost of interest-bearing liabilities for the fourth quarter of 2021 was 0.34%, down by 1 basis point from the preceding quarter.

Noninterest Income

Noninterest income totaled $20.3 million for the fourth quarter of 2021, down by $213 thousand, or 1%, from the third quarter of 2021. Linked quarter changes included:

* Wealth management revenues amounted to $10.5 million in the fourth quarter of 2021, up by $49 thousand, or 0.5%, on a linked quarter basis. This included an increase in asset-based revenues of $193 thousand, or 2%, and a decrease in transaction-based revenues of $144 thousand, or 62%, from the preceding quarter. The linked quarter decline in transaction-based revenues was concentrated in annuity commission fee income. Wealth management AUA amounted to $7.8 billion at December 31, 2021, up by $341 million from September 30, 2021. The increase reflected net investment appreciation of $359 million, partially offset by net client asset outflows of $18 million in the fourth quarter of 2021. The average balance of AUA for the fourth quarter of 2021 increased by approximately $86 million, or 1%, from the average balance for the preceding quarter. * Mortgage banking revenues totaled $4.3 million for the fourth quarter of 2021, down by $2.0 million, or 32%, from the third quarter of 2021, largely due to changes in fair value of mortgage loan commitments. Realized gains on sales of loans decreased by a $55 thousand, or 1%, as a lower sales yield on loans sold to the secondary market was essentially offset by a higher sales volume. Mortgage loans sold to the secondary market amounted to $197 million in the fourth quarter of 2021, up by $23 million, or 13%, from the preceding quarter. * Loan related derivative income was $2.0 million in the fourth quarter of 2021, up by $1.2 million from the preceding quarter, reflecting a higher volume of commercial borrower interest rate swap transactions. * Income from bank-owned life insurance totaled $1.1 million in the fourth quarter of 2021, up by $526 thousand, or 85%, from the preceding quarter. The fourth quarter included the recognition of $526 thousand in non-taxable income associated with the receipt of life insurance proceeds.

Noninterest Expense

Noninterest expense totaled $35.2 million for the fourth quarter of 2021, up by $2.7 million, or 8%, from the third quarter of 2021. Included in noninterest expense for the fourth quarter of 2021 was debt prepayment penalty expense of $2.7 million, resulting from the payoff of higher-yielding FHLB advances. There was no debt prepayment penalty expense recognized in the third quarter of 2021. Excluding the impact of debt prepayment penalty expense, noninterest expense was essentially unchanged from the prior quarter.

Salaries and employee benefits expense, the largest component of noninterest expense, amounted to $21.5 million for the fourth quarter of 2021, down by $638 thousand, or 3%, from the preceding quarter, largely reflecting adjustments to performance-based compensation accruals. The decrease in salaries and employee benefits expense was essentially offset by an increase of $291 thousand in outsourced services expense, due to a higher volume of commercial borrower loan related derivative transactions, as well as modest increases across a variety of other expense categories.

Income Tax

Income tax expense totaled $5.5 million for the fourth quarter of 2021, up by $143 thousand from the preceding quarter, largely due to a higher level of pre-tax income. The effective tax rate for the fourth quarter of 2021 was 21.3%, compared to 22.1% in the preceding quarter. Based on current federal and applicable state income statutes, the Corporation currently expects its full-year 2022 effective tax rate to be approximately 21.5%.

Investment Securities

The securities portfolio totaled $1.0 billion at December 31, 2021, down by $3 million, from September 30, 2021, reflecting routine pay-downs on mortgage-backed securities and calls of debt securities, partially offset by purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities. Purchases of debt securities in the fourth quarter 2021 totaled $80 million, with a weighted average yield of 1.78%. Securities represented 18% of total assets at December 31, 2021, compared to 17% of total assets at September 30, 2021.

Loans

Total loans amounted to $4.3 billion at December 31, 2021, down by $13 million, from the end of the preceding quarter. Linked quarter changes included:

* Commercial loans decreased by $64 million, or 3%, from September 30, 2021, which included a net reduction in PPP loans of $39 million. Excluding PPP loans, commercial loans decreased by $25 million, or 1%, from September 30, 2021, reflecting payoffs and pay-downs of approximately $195 million, partially offset by commercial loan originations and advances of approximately $170 million. * Residential real estate loans increased by $55 million, or 3%, from September 30, 2021. In the fourth quarter of 2021, residential real estate loans originated for portfolio amounted to $174 million. * The consumer loan portfolio decreased by $4 million, or 2%, from the balance at September 30, 2021.

Deposits and Borrowings

At December 31, 2021, in-market deposits, which exclude wholesale brokered time deposits, amounted to $4.5 billion, up by $162 million, or 4%, from the end of the preceding quarter, reflecting growth across all deposit categories. Wholesale brokered time deposits amounted to $515 million, down by $240 million, or 32%, from September 30, 2021. Total deposits amounted to $5.0 billion at December 31, 2021, down by $78 million, or 2%, from the end of the preceding quarter.

FHLB advances totaled $145 million at December 31, 2021, down by $78 million from September 30, 2021. In the fourth quarter of 2021, higher-yielding FHLB advances of approximately $45 million were prepaid.

Asset Quality

Total nonaccrual loans amounted to $14.2 million, or 0.33% of total loans, at December 31, 2021, compared to $11.0 million, or 0.26% of total loans, at September 30, 2021.

Total past due loans amounted to $10.4 million, or 0.24% of total loans, at December 31, 2021, compared to $9.5 million, or 0.22% of total loans, at September 30, 2021.

As of December 31, 2021, active loan payment deferral modifications, or "deferments", in response to the COVID-19 pandemic remain on one commercial real estate relationship with two loans totaling $9.7 million, or 0.2% of the outstanding balance of total loans excluding PPP loan balances. This is down from active deferments on five loans totaling $38.0 million, or 1% of the outstanding balance of total loans excluding PPP loan balances, as of September 30, 2021.

Total troubled debt restructured loans ("TDR") amounted to $19.1 million as of December 31, 2021, up by $9.4 million from September 30, 2021, due to the restructuring of one commercial real estate relationship with two loans that did not qualify for additional TDR accounting relief.

The allowance for credit losses ("ACL") on loans amounted to $39.1 million, or 0.91% of total loans, at December 31, 2021, compared to $41.7 million, or 0.97% of total loans, at September 30, 2021. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.2 million at December 31, 2021, compared to $2.3 million at September 30, 2021.

In the fourth quarter of 2021, there was a negative $2.8 million provision for credit losses (or a benefit) recognized in earnings. There was no provision for credit losses recognized in the preceding quarter. The reduction in the provision for credit losses and the related ACL reflected a continued downward trend in loan loss rates, as well as improvements in forecasted economic conditions and relatively stable asset quality metrics. In the fourth quarter of 2021, net recoveries of $27 thousand were recognized, compared to net charge-offs of $168 thousand in the preceding quarter. Full-year 2021 net charge-offs were $417 thousand, compared to $1.1 million in the prior year.

Capital and Dividends

Total shareholders' equity was $564.8 million at December 31, 2021, up by $9.5 million from September 30, 2021. This increase included net income of $20.2 million, partially offset by $9.4 million in dividend declarations, as well as a decrease of $1.9 million in the accumulated other comprehensive income component of shareholders' equity. The decrease in the accumulated other comprehensive income component of shareholders' equity included a temporary decrease in the fair value of available for sale securities, partially offset by a $4.5 million increase associated with the annual remeasurement of pension liabilities. The increase to shareholders' equity associated with the annual remeasurement of pension liabilities was largely due to an increase in the discount rate used to measure the present value of pension plan liabilities, resulting from a rise in market interest rates in 2021.

Capital levels at December 31, 2021 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 14.01% at December 31, 2021, compared to 13.83% at September 30, 2021.

Book value per share was $32.59 at December 31, 2021, compared to $32.06 at September 30, 2021.

The Board of Directors declared a quarterly dividend of 54 cents per share for the quarter ended December 31, 2021, representing an increase of 2 cents per share from the preceding quarter. The dividend was paid on January 7, 2022 to shareholders of record on January 3, 2022. Full-year 2021 dividends totaled $2.10 per share, an increase of 5 cents per share from full-year 2020 dividends of $2.05 per share.

Conference Call

Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 27, 2022 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-844-200-6205. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay PIN Number 665774; the audio replay will be available through February 26, 2022. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, http://ir.washtrust.com, and will be available through March 31, 2022.

Background

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

Forward-Looking Statements

This press release contains statements that are "forward-looking statements". We may also make forward-looking statements in other documents we file with the SEC, in 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: ongoing disruptions due to 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; changes in consumer behavior due to changing political, business and economic conditions, including concerns about inflation, or legislative or regulatory initiatives; the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; volatility in national and international financial markets; interest rate changes or 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; changes in loan demand and collectability; increases in defaults and charge-off rates; changes related to the discontinuation and replacement of LIBOR; 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, 2020, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Supplemental Information - Explanation of Non-GAAP Financial Measures

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

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; Dollars in thousands)



Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 2021 2021 2021 2021 2020

Assets:

Cash and due from banks $175,259 $297,039 $127,743 $166,960 $194,143

Short-term investments 3,234 3,349 4,463 3,783 8,125

Mortgage loans held for sale, at fair value 40,196 48,705 31,492 77,450 61,614

Available for sale debt securities, at fair value1,042,859 1,045,833 1,052,577 948,094 894,571

Federal Home Loan Bank stock, at cost 13,031 15,094 22,757 24,772 30,285

Loans:

Total loans 4,272,925 4,286,404 4,299,800 4,194,666 4,195,990

Less: allowance for credit losses on loans 39,088 41,711 41,879 42,137 44,106

Net loans 4,233,837 4,244,693 4,257,921 4,152,529 4,151,884

Premises and equipment, net 28,908 28,488 29,031 28,953 28,870

Operating lease right-of-use assets 26,692 27,518 28,329 28,761 29,521

Investment in bank-owned life insurance 92,592 92,974 92,355 84,749 84,193

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

Identifiable intangible assets, net 5,414 5,631 5,853 6,079 6,305

Other assets 125,196 129,410 135,550 133,350 159,749

Total assets $5,851,127$6,002,643$5,851,980$5,719,389$5,713,169

Liabilities:

Deposits:

Noninterest-bearing deposits $945,229 $950,974 $901,801 $932,999 $832,287

Interest-bearing deposits 4,034,822 4,107,168 3,823,858 3,616,143 3,546,066

Total deposits 4,980,051 5,058,142 4,725,659 4,549,142 4,378,353

Federal Home Loan Bank advances 145,000 222,592 408,592 466,912 593,859

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

Operating lease liabilities 29,010 29,810 30,558 30,974 31,717

Other liabilities 109,577 114,100 116,634 116,081 152,364

Total liabilities 5,286,319 5,447,325 5,304,124 5,185,790 5,178,974

Shareholders' Equity:

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

Paid-in capital 126,511 126,265 125,442 124,882 125,610

Retained earnings 458,310 447,566 437,927 429,598 418,246

Accumulated other comprehensive (loss) income (19,981) (18,128) (15,128) (20,006) (7,391)

Treasury stock, at cost (1,117) (1,470) (1,470) (1,960) (3,355)

Total shareholders' equity 564,808 555,318 547,856 533,599 534,195

Total liabilities and shareholders' equity $5,851,127$6,002,643$5,851,980$5,719,389$5,713,169

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, 2021 2021 2021 2021 2020 2021 2020

Interest income:

Interest and fees on loans $36,882$35,691$34,820$34,159$34,487$141,552$145,425

Interest on mortgage loans held for sale 387 298 405 441 569 1,531 1,762

Taxable interest on debt securities 3,929 3,683 3,441 3,242 3,869 14,295 20,050

Dividends on Federal Home Loan Bank stock 98 95 110 133 414 436 2,240

Other interest income 60 56 32 33 35 181 459

Total interest and dividend income 41,356 39,823 38,808 38,008 39,374 157,995 169,936

Interest expense:

Deposits 2,977 2,789 2,961 3,663 4,632 12,390 25,812

Federal Home Loan Bank advances 547 872 1,001 1,380 2,305 3,800 15,806

Junior subordinated debentures 92 92 92 94 122 370 641

Other interest expense - - - - 72 - 233

Total interest expense 3,616 3,753 4,054 5,137 7,131 16,560 42,492

Net interest income 37,740 36,070 34,754 32,871 32,243 141,435 127,444

Provision for credit losses (2,822)- - (2,000)1,781 (4,822) 12,342

Net interest income after provision for credit losses40,562 36,070 34,754 34,871 30,462 146,257 115,102

Noninterest income:

Wealth management revenues 10,504 10,455 10,428 9,895 9,206 41,282 35,454

Mortgage banking revenues 4,332 6,373 5,994 11,927 14,077 28,626 47,377

Card interchange fees 1,282 1,265 1,316 1,133 1,148 4,996 4,287

Service charges on deposit accounts 766 673 635 609 767 2,683 2,742

Loan related derivative income 1,972 728 1,175 467 173 4,342 3,991

Income from bank-owned life insurance 1,144 618 607 556 569 2,925 2,491

Other income 307 408 438 1,387 1,787 2,540 3,100

Total noninterest income 20,307 20,520 20,593 25,974 27,727 87,394 99,442

Noninterest expense:

Salaries and employee benefits 21,524 22,162 22,082 21,527 22,075 87,295 82,899

Outsourced services 3,585 3,294 3,217 3,200 2,950 13,296 11,894

Net occupancy 2,145 2,134 2,042 2,128 2,083 8,449 8,023

Equipment 959 977 975 994 1,025 3,905 3,831

Legal, audit and professional fees 817 767 678 597 1,014 2,859 3,747

FDIC deposit insurance costs 391 482 374 345 330 1,592 1,818

Advertising and promotion 502 559 560 222 640 1,843 1,469

Amortization of intangibles 216 223 225 226 226 890 914

Debt prepayment penalties 2,700 - 895 3,335 1,413 6,930 1,413

Other expenses 2,380 1,922 1,964 2,139 2,353 8,405 9,376

Total noninterest expense 35,219 32,520 33,012 34,713 34,109 135,464 125,384

Income before income taxes 25,650 24,070 22,335 26,132 24,080 98,187 89,160

Income tax expense 5,462 5,319 4,875 5,661 5,514 21,317 19,331

Net income $20,188$18,751$17,460$20,471$18,566$76,870 $69,829



Net income available to common shareholders $20,128$18,697$17,408$20,415$18,524$76,648 $69,678



Weighted average common shares outstanding:

Basic 17,328 17,320 17,314 17,275 17,264 17,310 17,282

Diluted 17,469 17,444 17,436 17,431 17,360 17,455 17,402

Earnings per common share:

Basic $1.16 $1.08 $1.01 $1.18 $1.07 $4.43 $4.03

Diluted $1.15 $1.07 $1.00 $1.17 $1.07 $4.39 $4.00



Cash dividends declared per share $0.54 $0.52 $0.52 $0.52 $0.52 $2.10 $2.05

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

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



Dec Sep Jun Mar Dec 31, 30, 30, 31, 31, 2021 2021 2021 2021 2020

Share and Equity Related Data:

Book value per share $32.59$32.06$31.63$30.83$30.94

Tangible book value per share - Non-GAAP $28.59$28.05$27.60$26.79$26.87(1)

Market value per share $56.37$52.98$51.35$51.63$44.80

Shares issued at end of period 17,36317,36317,36317,36317,363

Shares outstanding at end of period 17,33117,32017,32017,30617,265



Capital Ratios (2) :

Tier 1 risk-based capital 13.24%13.01%12.82%12.99%12.61%

Total risk-based capital 14.01%13.83%13.65%13.85%13.51%

Tier 1 leverage ratio 9.36% 9.12% 9.07% 9.11% 8.95%

Common equity tier 1 12.71%12.47%12.28%12.43%12.06%



Balance Sheet Ratios:

Equity to assets 9.65% 9.25% 9.36% 9.33% 9.35%

Tangible equity to tangible assets - 8.57% 8.19% 8.27% 8.21% 8.22% Non-GAAP(1)

Loans to deposits (3) 85.8% 84.9% 90.8% 93.0% 96.2%

For the Twelve Months For the Three Months Ended Ended

Dec Sep Jun Mar Dec Dec Dec 31, 30, 30, 31, 31, 31, 31, 2021 2021 2021 2021 2020 2021 2020

Performance Ratios (4) :

Net interest margin (5) 2.71% 2.58% 2.55% 2.51% 2.39% 2.59% 2.40%

Return on average assets (net income divided by 1.36% 1.26% 1.20% 1.45% 1.28% 1.32% 1.22% average assets)

Return on average tangible 1.38% 1.27% 1.22% 1.47% 1.30% 1.33% 1.24% assets - Non-GAAP (1)

Return on average equity (net income available for 14.34%13.37%12.92%15.55%13.96%14.03%13.51%common shareholders divided by average equity)

Return on average tangible 16.39%15.29%14.84%17.91%16.10%16.09%15.66%equity - Non-GAAP (1)

Efficiency ratio (6) 60.7% 57.5% 59.6% 59.0% 56.9% 59.2% 55.3%

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

(2) Estimated for December 31, 2021 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, 2021 2021 2021 2021 2020 2021 2020

Wealth Management Results

Wealth Management Revenues:

Asset-based revenues $10,417 $10,224 $9,991 $9,583 $9,066 $40,215 $34,363

Transaction-based revenues 87 231 437 312 140 1,067 1,091

Total wealth management revenues $10,504 $10,455 $10,428 $9,895 $9,206 $41,282 $35,454



Assets Under Administration (AUA):

Balance at beginning of period $7,443,396$7,441,519$7,049,226$6,866,737$6,395,652$6,866,737$6,235,801

Net investment appreciation (depreciation) & 358,796 (4,830) 368,383 208,953 540,189 931,302 774,265 income

Net client asset inflows (outflows) (17,981) 6,707 23,910 (26,464) (69,104) (13,828) (143,329)

Balance at end of period $7,784,211$7,443,396$7,441,519$7,049,226$6,866,737$7,784,211$6,866,737



Percentage of AUA that are managed assets 92% 91% 92% 91% 91% 92% 91%



Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net (1) $5,695 $5,750 $8,562 $13,745 $13,394 $33,752 $42,008

Changes in fair value, net (2) (1,594) 467 (2,543) (1,888) 813 (5,558) 5,998

Loan servicing fee income, net (3) 231 156 (25) 70 (130) 432 (629)

Total mortgage banking revenues $4,332 $6,373 $5,994 $11,927 $14,077 $28,626 $47,377



Residential Mortgage Loan Originations:

Originations for retention in portfolio (4) $174,438 $205,293 $244,821 $131,791 $134,002 $756,343 $502,120

Originations for sale to secondary market (5)188,735 190,702 244,562 309,325 312,226 933,324 1,171,906

Total mortgage loan originations $363,173 $395,995 $489,383 $441,116 $446,228 $1,689,667$1,674,026



Residential Mortgage Loans Sold:

Sold with servicing rights retained $21,180 $108,445 $235,280 $226,645 $240,104 $591,550 $849,467

Sold with servicing rights released (5) 175,818 65,416 55,278 65,374 78,072 361,886 290,294

Total mortgage loans sold $196,998 $173,861 $290,558 $292,019 $318,176 $953,436 $1,139,761

Includes gains on loan sales, commission income on loans originated for(1) others, servicing right gains, and gains (losses) on forward loan commitments.

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

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

(4) Includes the full commitment amount of homeowner construction loans.

(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, 2021 2021 2021 2021 2020

Loans:

Commercial real estate$1,639,062$1,661,785$1,669,624$1,618,540$1,633,024(1)

Commercial & 641,555 682,774 764,509 840,585 817,408 industrial

Total commercial 2,280,617 2,344,559 2,434,133 2,459,125 2,450,432



Residential real 1,726,975 1,672,364 1,590,389 1,457,490 1,467,312 estate (2)



Home equity 247,697 249,874 254,802 256,799 259,185

Other 17,636 19,607 20,476 21,252 19,061

Total consumer 265,333 269,481 275,278 278,051 278,246

Total loans $4,272,925$4,286,404$4,299,800$4,194,666$4,195,990

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, 2021 December 31, 2020

CountBalance % of TotalCountBalance % of Total

Commercial Real Estate Portfolio Segmentation:

Multi-family dwelling 127 $474,229 29% 137 $524,874 32%

Retail 121 389,487 24 136 339,569 21

Office 57 216,602 13 73 290,756 18

Hospitality 31 184,990 11 40 157,720 10

Industrial and warehouse 35 137,254 8 28 97,055 6

Healthcare 13 128,189 8 15 109,321 7

Commercial mixed use 20 38,978 2 22 42,405 2

Other 36 69,333 5 38 71,324 4

Commercial real estate loans 440 $1,639,062100% 489 $1,633,024100%



Commercial & Industrial Portfolio Segmentation:

Healthcare and social assistance 101 $174,376 27% 253 $200,217 24%

Owner occupied and other real estate 185 72,957 11 268 74,309 9

Manufacturing 65 55,341 9 146 88,802 11

Educational services 28 52,211 8 53 64,969 8

Retail 79 47,290 7 192 63,895 8

Transportation and warehousing 31 35,064 5 42 24,061 3

Entertainment and recreation 37 32,087 5 91 29,415 4

Finance and insurance 59 31,279 5 106 26,244 3

Accommodation and food services 114 28,320 4 271 47,020 6

Information 14 25,045 4 32 28,394 3

Professional, scientific and technical 69 8,912 1 265 39,295 5

Public administration 16 5,441 1 26 23,319 3

Other 281 73,232 13 772 107,468 13

Commercial & industrial loans 1,079$641,555 100% 2,517$817,408 100%

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION

(Unaudited; Dollars in thousands)



December 31, 2021 December 31, 2020

CountBalance% of TotalCountBalance % of Total

PPP Loans By Industry:

Accommodation and food services 69 $13,68736% 209 $23,678 12%

Healthcare and social assistance 36 6,926 18 173 47,354 24

Professional, scientific and technical 34 2,464 6 220 20,031 10

Information 6 2,034 5 20 2,478 1

Retail 22 1,698 4 134 12,107 6

Entertainment and recreation 12 1,693 4 61 3,386 2

Manufacturing 11 1,274 3 89 23,321 12

Owner occupied and other real estate 20 709 2 115 9,241 5

Educational services 8 312 1 32 9,681 5

Finance and insurance 6 299 1 55 2,000 1

Transportation and warehousing 9 138 - 21 2,059 1

Public administration 1 21 - 4 483 -

Other 113 6,764 20 573 43,961 21

Total PPP loans (included in the commercial & industrial loan portfolio)347 $38,019100% 1,706$199,780100%



Average PPP loan size $110 $117

Net unamortized fees on PPP loans $1,267 $3,893



December 31, 2021 September 30, 2021

% of % of Outstanding Outstanding CountBalanceBalance, CountBalanceBalance, excl PPP excl PPP loans (1) loans (1)

Active Loan Deferments by Portfolio:

Commercial real estate deferments 2 $9,720 1% 5 $37,9552%

Commercial & industrial deferments - - - - - -

Total commercial deferments 2 9,720 1 5 37,955 2



Residential real estate deferments - - - - - -



Total consumer deferments - - - - - -

Total active loan deferments 2 $9,720 -% 5 $37,9551%

(1) Percent of respective outstanding portfolio segment balance excluding balance of PPP loans.

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN AND DEPOSIT COMPOSITION

(Unaudited; Dollars in thousands)



December 31, 2021December 31, 2020

Balance % of Balance % of Total Total

Commercial Real Estate Loans by Property Location:

Connecticut $643,182 39% $649,919 40%

Massachusetts 464,018 28 468,947 29

Rhode Island 408,496 25 431,133 26

Subtotal 1,515,696 92 1,549,999 95

All other states 123,366 8 83,025 5

Total commercial real estate loans $1,639,062100% $1,633,024100%



Residential Real Estate Loans by Property Location:

Massachusetts $1,207,78970% $994,800 68%

Rhode Island 365,831 21 331,713 23

Connecticut 132,430 8 122,102 8

Subtotal 1,706,050 99 1,448,615 99

All other states 20,925 1 18,697 1

Total residential real estate loans $1,726,975100% $1,467,312100%

Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 2021 2021 2021 2021 2020

Deposits:

Noninterest-bearing $945,229 $950,974 $901,801 $932,999 $832,287 demand deposits

Interest-bearing 251,032 238,317 174,165 171,571 174,290 demand deposits

NOW accounts 867,138 817,937 774,693 745,376 698,706

Money market accounts 1,072,864 1,046,324 941,511 950,413 910,167

Savings accounts 555,177 540,306 524,155 511,759 466,507

Time deposits 773,383 709,288 677,061 701,524 704,855 (in-market)

In-market deposits 4,464,823 4,303,146 3,993,386 4,013,642 3,786,812

Wholesale brokered 515,228 754,996 732,273 535,500 591,541 time deposits

Total deposits $4,980,051$5,058,142$4,725,659$4,549,142$4,378,353

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)



Dec 31,Sep 30,Jun 30,Mar 31,Dec 31, 2021 2021 2021 2021 2020

Asset Quality Ratios:

Nonperforming assets to total assets 0.24% 0.18% 0.18% 0.23% 0.23%

Nonaccrual loans to total loans 0.33% 0.26% 0.24% 0.31% 0.31%

Total past due loans to total loans 0.24% 0.22% 0.20% 0.26% 0.30%

Allowance for credit losses on loans 275.21%380.02%399.57%324.56%334.21%to nonaccrual loans

Allowance for credit losses on loans 0.91% 0.97% 0.97% 1.00% 1.05% to total loans



Nonperforming Assets:

Commercial real estate $- $- $- $- $-

Commercial & industrial - - 539 - -

Total commercial - - 539 - -

Residential real estate 13,576 10,321 8,926 11,748 11,981

Home equity 627 655 1,016 1,147 1,128

Other consumer - - - 88 88

Total consumer 627 655 1,016 1,235 1,216

Total nonaccrual loans 14,203 10,976 10,481 12,983 13,197

Other real estate owned - - - - -

Total nonperforming assets $14,203$10,976$10,481$12,983$13,197



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

Commercial real estate $- $- $- $- $265

Commercial & industrial 3 2 540 1 3

Total commercial 3 2 540 1 268

Residential real estate 9,622 8,698 6,656 9,661 10,339

Home equity 765 824 1,231 1,131 1,667

Other consumer 21 24 28 119 118

Total consumer 786 848 1,259 1,250 1,785

Total past due loans $10,411$9,548 $8,455 $10,912$12,392



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

Nonaccrual loans included in past due$9,359 $6,930 $5,773 $8,356 $8,521 loans



Troubled Debt Restructurings:

Accruing TDRs $16,328$7,979 $8,541 $12,358$13,340

Nonaccrual TDRs 2,819 1,732 2,278 1,935 2,345

Total TDRs $19,147$9,711 $10,819$14,293$15,685

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, 2021 2021 2021 2021 2020 2021 2020

Nonaccrual Loan Activity:

Balance at beginning of period $10,976$10,481$12,983$13,197$14,740$13,197$17,408

Additions to nonaccrual status 3,959 2,583 537 734 707 7,813 3,644

Loans returned to accruing status (339) - (874) (3) (1,112)(1,216)(3,282)

Loans charged-off (31) (249) (317) (64) (246) (661) (1,317)

Loans transferred to other real estate owned - - - - (285) - (313)

Payments, payoffs and other changes (362) (1,839)(1,848)(881) (607) (4,930)(2,943)

Balance at end of period $14,203$10,976$10,481$12,983$13,197$14,203$13,197



Allowance for Credit Losses on Loans:

Balance at beginning of period $41,711$41,879$42,137$44,106$42,645$44,106$27,014

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

Provision for credit losses on loans (1) (2,650)- - (1,951)1,579 (4,601)11,736

Charge-offs (33) (249) (317) (64) (245) (663) (1,317)

Recoveries 60 81 59 46 127 246 172

Balance at end of period $39,088$41,711$41,879$42,137$44,106$39,088$44,106



Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of period $2,333 $2,333 $2,333 $2,382 $2,180 $2,382 $293

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

Provision for credit losses on unfunded commitments (1)(172) - - (49) 202 (221) 606

Balance at end of period (2) $2,161 $2,333 $2,333 $2,333 $2,382 $2,161 $2,382

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

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

For the Three Months Ended For the Twelve Months Ended

Dec 31,Sep 30,Jun 30,Mar 31,Dec 31,Dec 31,Dec 2021 2021 2021 2021 2020 2021 31, 2020

Net Loan Charge-Offs (Recoveries):

Commercial real estate $- $- $- $- $133 $- $305

Commercial & industrial (35) (2) 302 1 (12) 266 562

Total commercial (35) (2) 302 1 121 266 867

Residential real estate (4) 52 (47) 17 (20) 18 79

Home equity (12) 110 (4) (2) 9 92 172

Other consumer 24 8 7 2 8 41 27

Total consumer 12 118 3 - 17 133 199

Total ($27) $168 $258 $18 $118 $417 $1,145



Net charge-offs to average loans (annualized)-% 0.02% 0.02% -% 0.01% 0.01% 0.03%

The following table presents average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent ("FTE") 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 changes in fair value on mortgage loans held for sale are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Three Months Ended December 31, 2021 September 30, 2021 Change

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

Assets:

Cash, federal funds sold and short-term$190,291 $60 0.13%$179,574 $56 0.12%$10,717 $4 0.01% investments

Mortgage loans held for sale 50,425 387 3.04 41,261 298 2.87 9,164 89 0.17

Taxable debt securities 1,060,045 3,929 1.47 1,045,997 3,683 1.40 14,048 246 0.07

FHLB stock 12,986 98 2.99 18,909 95 1.99 (5,923) 3 1.00

Commercial real estate 1,657,669 14,281 3.42 1,648,972 12,209 2.94 8,697 2,072 0.48

Commercial & industrial 630,805 6,960 4.38 736,073 7,886 4.25 (105,268)(926) 0.13

Total commercial 2,288,474 21,241 3.68 2,385,045 20,095 3.34 (96,571) 1,146 0.34

Residential real estate 1,689,949 13,636 3.20 1,623,913 13,511 3.30 66,036 125 (0.10)

Home equity 249,336 1,992 3.17 252,938 2,043 3.20 (3,602) (51) (0.03)

Other 18,171 224 4.89 19,822 247 4.94 (1,651) (23) (0.05)

Total consumer 267,507 2,216 3.29 272,760 2,290 3.33 (5,253) (74) (0.04)

Total loans 4,245,930 37,093 3.47 4,281,718 35,896 3.33 (35,788) 1,197 0.14

Total interest-earning assets 5,559,677 41,567 2.97 5,567,459 40,028 2.85 (7,782) 1,539 0.12

Noninterest-earning assets 324,904 351,678 (26,774)

Total assets $5,884,581 $5,919,137 ($34,556)

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits $238,390 $63 0.10%$206,237 $51 0.10%$32,153 $12 -%

NOW accounts 819,590 142 0.07 782,963 129 0.07 36,627 13 -

Money market accounts 1,059,846 561 0.21 1,014,204 586 0.23 45,642 (25) (0.02)

Savings accounts 544,981 70 0.05 530,956 70 0.05 14,025 - -

Time deposits (in-market) 746,887 1,927 1.02 672,012 1,695 1.00 74,875 232 0.02

Total interest-bearing in-market 3,409,694 2,763 0.32 3,206,372 2,531 0.31 203,322 232 0.01 deposits

Wholesale brokered time deposits 611,467 214 0.14 722,233 258 0.14 (110,766)(44) -

Total interest-bearing deposits 4,021,161 2,977 0.29 3,928,605 2,789 0.28 92,556 188 0.01

FHLB advances 171,079 547 1.27 317,766 872 1.09 (146,687)(325) 0.18

Junior subordinated debentures 22,681 92 1.61 22,681 92 1.61 - - -

PPPLF borrowings - - - - - - - - -

Total interest-bearing liabilities 4,214,921 3,616 0.34 4,269,052 3,753 0.35 (54,131) (137) (0.01)

Noninterest-bearing demand deposits 981,706 952,676 29,030

Other liabilities 131,189 142,562 (11,373)

Shareholders' equity 556,765 554,847 1,918

Total liabilities and shareholders' $5,884,581 $5,919,137 ($34,556) equity

Net interest income (FTE) $37,951 $36,275 $1,676

Interest rate spread 2.63% 2.50% 0.13%

Net interest margin 2.71% 2.58% 0.13%

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

For the Three Months EndedDec 31, 2021Sep 30, 2021Change

Commercial loans $211 $205 $6

Total $211 $205 $6



Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Twelve Months Ended December 31, 2021 December 31, 2020 Change

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

Assets:

Cash, federal funds sold and short-term $167,898 $181 0.11%$160,427 $459 0.29%$7,471 ($278) (0.18%) investments

Mortgage loans for sale 52,580 1,531 2.91 54,237 1,762 3.25 (1,657) (231) (0.34)

Taxable debt securities 1,013,445 14,295 1.41 902,278 20,050 2.22 111,167 (5,755) (0.81)

FHLB stock 21,422 436 2.04 45,235 2,240 4.95 (23,813) (1,804) (2.91)

Commercial real estate 1,643,107 49,551 3.02 1,632,460 52,231 3.20 10,647 (2,680) (0.18)

Commercial & industrial 752,934 30,824 4.09 767,176 27,410 3.57 (14,242) 3,414 0.52

Total commercial 2,396,041 80,375 3.35 2,399,636 79,641 3.32 (3,595) 734 0.03

Residential real estate 1,571,459 52,884 3.37 1,488,343 55,866 3.75 83,116 (2,982) (0.38)

Home equity 254,289 8,212 3.23 277,296 10,032 3.62 (23,007) (1,820) (0.39)

Other 19,765 966 4.89 18,929 941 4.97 836 25 (0.08)

Total consumer 274,054 9,178 3.35 296,225 10,973 3.70 (22,171) (1,795) (0.35)

Total loans 4,241,554 142,437 3.36 4,184,204 146,480 3.50 57,350 (4,043) (0.14)

Total interest-earning assets 5,496,899 158,880 2.89 5,346,381 170,991 3.20 150,518 (12,111)(0.31)

Noninterest-earning assets 341,067 358,569 (17,502)

Total assets $5,837,966 $5,704,950 $133,016

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits $202,929 $259 0.13%$159,366 $806 0.51%$43,563 ($547) (0.38%)

NOW accounts 765,584 491 0.06 593,105 368 0.06 172,479 123 -

Money market accounts 984,278 2,413 0.25 839,915 5,402 0.64 144,363 (2,989) (0.39)

Savings accounts 521,143 282 0.05 415,741 265 0.06 105,402 17 (0.01)

Time deposits (in-market) 702,303 7,749 1.10 742,236 13,138 1.77 (39,933) (5,389) (0.67)

Total interest-bearing in-market deposits3,176,237 11,194 0.35 2,750,363 19,979 0.73 425,874 (8,785) (0.38)

Wholesale brokered time deposits 644,151 1,196 0.19 501,306 5,833 1.16 142,845 (4,637) (0.97)

Total interest-bearing deposits 3,820,388 12,390 0.32 3,251,669 25,812 0.79 568,719 (13,422)(0.47)

FHLB advances 370,881 3,800 1.02 920,704 15,806 1.72 (549,823)(12,006)(0.70)

Junior subordinated debentures 22,681 370 1.63 22,681 641 2.83 - (271) (1.20)

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

Total interest-bearing liabilities 4,213,950 16,560 0.39 4,261,546 42,492 1.00 (47,596) (25,932)(0.61)

Noninterest-bearing demand deposits 934,626 759,841 174,785

Other liabilities 143,197 167,861 (24,664)

Shareholders' equity 546,193 515,702 30,491

Total liabilities and shareholders' $5,837,966 $5,704,950 $133,016 equity

Net interest income (FTE) $142,320 $128,499 $13,821

Interest rate spread 2.50% 2.20% 0.30%

Net interest margin 2.59% 2.40% 0.19%

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



For the Twelve Months EndedDec 31, 2021Dec 31, 2020Change

Commercial loans $885 $1,055 ($170)

Total $885 $1,055 ($170)

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, 2021 2021 2021 2021 2020

Tangible Book Value per Share:

Total shareholders' equity, as reported $564,808 $555,318 $547,856 $533,599 $534,195

Less:

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

Identifiable intangible assets, net 5,414 5,631 5,853 6,079 6,305

Total tangible shareholders' equity $495,485 $485,778 $478,094 $463,611 $463,981



Shares outstanding, as reported 17,331 17,320 17,320 17,306 17,265



Book value per share - GAAP $32.59 $32.06 $31.63 $30.83 $30.94

Tangible book value per share - Non-GAAP $28.59 $28.05 $27.60 $26.79 $26.87



Tangible Equity to Tangible Assets:

Total tangible shareholders' equity $495,485 $485,778 $478,094 $463,611 $463,981



Total assets, as reported $5,851,127$6,002,643$5,851,980$5,719,389$5,713,169

Less:

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

Identifiable intangible assets, net 5,414 5,631 5,853 6,079 6,305

Total tangible assets $5,781,804$5,933,103$5,782,218$5,649,401$5,642,955



Equity to assets - GAAP 9.65% 9.25% 9.36% 9.33% 9.35%

Tangible equity to tangible assets - Non-GAAP8.57% 8.19% 8.27% 8.21% 8.22%

For the Three Months Ended For the Twelve Months Ended

Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31, 2021 2021 2021 2021 2020 2021 2020

Return on Average Tangible Assets:

Net income, as reported $20,188 $18,751 $17,460 $20,471 $18,566 $76,870 $69,829



Total average assets, as reported $5,884,581$5,919,137$5,833,425$5,711,931$5,768,263$5,837,966$5,704,950

Less average balances of:

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

Identifiable intangible assets, net 5,526 5,739 5,963 6,189 6,414 5,852 6,755

Total average tangible assets $5,815,146$5,849,489$5,763,553$5,641,833$5,697,940$5,768,205$5,634,286



Return on average assets - GAAP 1.36% 1.26% 1.20% 1.45% 1.28% 1.32% 1.22%

Return on average tangible assets - Non-1.38% 1.27% 1.22% 1.47% 1.30% 1.33% 1.24% GAAP



Return on Average Tangible Equity:

Net income available to common $20,128 $18,697 $17,408 $20,415 $18,524 $76,648 $69,678 shareholders, as reported



Total average equity, as reported $556,765 $554,847 $540,524 $532,271 $527,969 $546,193 $515,702

Less average balances of:

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

Identifiable intangible assets, net 5,526 5,739 5,963 6,189 6,414 5,852 6,755

Total average tangible equity $487,330 $485,199 $470,652 $462,173 $457,646 $476,432 $445,038



Return on average equity - GAAP 14.34% 13.37% 12.92% 15.55% 13.96% 14.03% 13.51%

Return on average tangible equity - Non-16.39% 15.29% 14.84% 17.91% 16.10% 16.09% 15.66% GAAP

Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.