EX-99.1 2 a4681057ex991.txt WASHINGTON TRUST BANCORP EXHIBIT 99.1 Exhibit 99.1 Washington Trust Announces Second Quarter Earnings WESTERLY, R.I.--(BUSINESS WIRE)--July 15, 2004--Washington Trust Bancorp, Inc. (Nasdaq National Market; symbol: WASH), parent company of The Washington Trust Company, today announced quarterly net income of $5.0 million for the second quarter ended June 30, 2004, an increase of 10 percent over net income of $4.6 million for the second quarter of 2003. On a diluted earnings per share basis, the Corporation earned 37 cents for the second quarter of 2004, up from 34 cents for the same quarter a year ago. The returns on average assets and average equity for the three months ended June 30, 2004 were 0.96% and 14.46%, respectively, compared to 1.01% and 13.57%, respectively, for the three months ended June 30, 2003. Last year, the Corporation's operating results for the second quarter were favorably impacted by gains on loan sales totaling $1.4 million, compared to $560 thousand in the second quarter of 2004. In addition, net income for the second quarter last year included a charge of $941 thousand incurred on the early payoff of Federal Home Loan Bank ("FHLB") borrowings. "Washington Trust had a great second quarter, with strong growth in all of our lines of business," said John C. Warren, Chairman and Chief Executive Officer of Washington Trust. "We saw very healthy increases in total loans, total deposits and revenue from trust and investment management income. And, we ended the quarter with a significant amount of business in the pipeline." For the first six months of 2004, net income amounted to $10.0 million, up 7 percent over $9.3 million in the first half of 2003. On a diluted earnings per share basis, the Corporation earned 74 cents for the first half of 2004, up 6 percent over 70 cents for the same period a year ago. The returns on average assets and average equity for the six months ended June 30, 2004 were 0.98% and 14.18%, respectively, compared to 1.04% and 14.06%, respectively, for the six months ended June 30, 2003. The Corporation experienced strong balance sheet growth in the second quarter of 2004. Total assets amounted to $2.179 billion at June 30, 2004, up 6 percent from the March 31, 2004 balance and up 10 percent from the balance reported at December 31, 2003. Total loans at June 30, 2004 were 10 percent higher than at March 31, 2004 and 15 percent higher than at December 31, 2003. Residential real estate loans amounted to $451.1 million at June 30, 2004, up $50.5 million, or 13%, in the second quarter of 2004, including an increase of $27.5 million in residential mortgages purchased from other financial institutions. Commercial loans increased $26.9 million, or 6 percent, from the March 31, 2004 balance and amounted to $448.3 million at June 30, 2004. Growth in consumer loans has been very favorable with an increase of $19.3 million, or 11 percent, in the second quarter primarily due to growth in home equity lines and home equity loans. Total consumer loans increased 24 percent in the first half of 2004. Total securities were $903.0 million at June 30, 2004, up $18.4 million in the second quarter of 2004 and up $63.6 million from the balance at December 31, 2003. Total deposits at June 30, 2004 amounted to $1.342 billion, up 8 percent from the balance at March 31, 2004 and up 11 percent from the December 31, 2003 balance. Savings deposits, including money market deposits, were up $44.5 million, or 9 percent, in the second quarter and up $73.1 million, or 15 percent, in the first half of 2004. Time deposits increased $31.2 million, or 6 percent, from the March 31, 2004 balance, primarily due to increases in brokered certificates of deposit. Demand deposits increased $21.5 million, or 12 percent, in the second quarter of 2004 and totaled $200.9 million at June 30, 2004. FHLB advances totaled $676.3 million at June 30, 2004, increasing $32.1 million from the March 31, 2004 balance and $69.2 million from the balance at December 31, 2003. Net interest income for the second quarter of 2004 amounted to $13.1 million, up 7 percent from $12.3 million for the same quarter a year ago. The net interest margin for the second quarter of 2004 was 2.72%, down from 2.87% in the first quarter of 2004 and 2.96% in the second quarter of 2003. The decrease in the net interest margin from the first quarter of 2004 is largely attributable to lower marginal yields on new loans in comparison to overall portfolio yields and, to a lesser extent, to an increase in premium amortization on mortgage-backed securities earlier in the second quarter. For the six months ended June 30, 2004, net interest income amounted to $26.2 million, up 8 percent from the amount reported for the corresponding 2003 period. The net interest margin for the first half of 2004 amounted to 2.80%, down 17 basis points from the 2.97% reported for the same period a year ago, reflecting a decline in yields on loans and securities offset somewhat by lower funding costs of FHLB advances and interest-bearing deposits. Noninterest income (excluding net realized gains and losses on securities) totaled $7.2 million for the second quarter of 2004, compared to $7.0 million for the same quarter a year ago. For the first half of 2004, noninterest income amounted to $13.1 million, up $346 thousand, or 3 percent, over the comparable 2003 amount. Trust and investment management revenues increased $1.1 million, or 21 percent, in the first half of 2004 compared to the same period in 2003. Trust assets under administration amounted to $1.784 billion at June 30, 2004, compared to $1.742 billion at December 31, 2003 and $1.576 billion at June 30, 2003. Net gains on loan sales for the six months ended June 30, 2004 amounted to $909 thousand, down from $2.7 million for the same period in 2003. Total second quarter 2004 net gains on loan sales were $560 thousand, down from $1.4 million for the same quarter a year ago. These decreases reflect a significant decline in fixed rate mortgage origination and sales activity. The Corporation has experienced a further decline in fixed rate mortgage origination activity beginning in the latter part of the second quarter. Meanwhile, the level of adjustable rate mortgages originated by Washington Trust has increased; these loans are retained in the Corporation's loan portfolio. Also included in loan sale gains are gains resulting from the sale of the guaranteed portion of SBA loans. Total such gains for the six months ended 2004 were $390 thousand, up from $181 thousand for the same period in 2003. Included in other noninterest income for the second quarter of 2004 was $280 thousand recovered as a result of a favorable litigation decision. In the first six months of 2004, the Corporation recognized net realized losses on securities amounting to $240 thousand. For the six months ended June 30, 2003, net realized gains on securities totaled $630 thousand, including approximately $400 thousand in gains resulting from the Corporation's contribution of appreciated equity securities to the Corporation's charitable foundation. The cost of this 2003 contribution amounted to approximately $433 thousand and was included in other noninterest expense for the six months ended June 30, 2003. The Corporation expects to make an annual contribution to its charitable foundation in the third quarter of 2004. Exclusive of the second quarter 2003 pre-tax debt prepayment penalty charge of $941 thousand, noninterest expenses for the second quarter of 2004 increased 5 percent from the same period a year ago. Noninterest expenses amounted to $24.2 million for the first half of 2004, up 6 percent from the corresponding period in 2003 (exclusive of the debt prepayment penalty charge) with the largest increase in personnel related costs. In addition, included in noninterest expenses for the six months ended June 30, 2004 were costs associated with the conversion of certain technology systems amounting to $275 thousand, of which $140 thousand were included in the second quarter of 2004. Nonaccrual loans as a percentage of total loans at June 30, 2004 were .45%, up from .29% at December 31, 2003. Nonperforming assets (nonaccrual loans and property acquired through foreclosure) amounted to $5.0 million, or .23% of total assets, at June 30, 2004, up from $2.7 million, or .14%, at December 31, 2003. The increase was largely due to a single $2.1 million commercial lending relationship classified as nonaccrual during the second quarter of 2004. The Corporation continued to benefit from favorable loan loss experience in the first six months of 2004 as indicated by a $54 thousand excess of loan loss recoveries over charge-offs. In the first six months of 2003, charge-offs, net of recoveries, amounted to $5 thousand. Total shareholders' equity amounted to $138.5 million at June 30, 2004, compared to $138.1 million at December 31, 2003. Book value per share as of June 30, 2004 and December 31, 2003 amounted to $10.47 and $10.46, respectively. Washington Trust Bancorp, Inc. Chairman and Chief Executive Officer, John C. Warren, and David V. Devault, Executive Vice President, Treasurer, and Chief Financial Officer, will host a conference call on Thursday, July 15, at 4:30 p.m. (Eastern Daylight Time) to discuss the Corporation's second quarter results. Access to the call is available in a listen-only mode on Washington Trust's web site, http://investorrelations.washtrust.com. A replay of the call will be posted in this same section of the web site shortly after the conclusion of the call. Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a Rhode Island state-chartered bank founded in 1800. The Bank offers a full range of financial services, including trust and investment management, through its offices in Rhode Island and southeastern Connecticut. Washington Trust Bancorp, Inc.'s common stock trades on The Nasdaq Stock Market(R) under the symbol WASH. Investor information is available on the Corporation's web site: www.washtrust.com. Note: This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Corporation's management uses these non-GAAP measures in its analysis of the Corporation's performance. These measures adjust GAAP performance measures to exclude the effect of significant gains or losses that are unusual in nature such as debt prepayment penalty charges. Because these items and their impact on the Corporation's performance are difficult to predict, management believes that presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Corporation's core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other Corporations. A quantitative reconciliation of the differences between the non-GAAP financial information discussed herein and the most directly comparable financial information calculated and presented in accordance with GAAP is contained in the Financial Summary statements attached to this press release. This report contains certain statements that may be considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Corporation's actual results, performance or achievements could differ materially from those projected in the forward-looking statements as a result, among other factors, of changes in general national or regional economic conditions, changes in interest rates, reductions in the market value of trust and investment assets under management, reductions in loan demand, reductions in deposit levels necessitating increased borrowing to fund loans and investments, changes in loan default and charge-off rates, changes in the size and nature of the Corporation's competition, changes in legislation or regulation and accounting principles, policies and guidelines and changes in the assumptions used in making such forward-looking statements. Washington Trust Bancorp, Inc. and Subsidiary FINANCIAL SUMMARY THREE MONTHS ENDED -------------------------------- (Dollars and shares in thousands, JUN. 30, JUN. 30, MAR. 31, except per share amounts) 2004 2003 2004 ---------- ---------- ---------- OPERATING RESULTS ------------------------------------- Net interest income $13,092 $12,282 $13,083 Provision for loan losses 120 160 120 Net realized (losses) gains on securities (240) 400 - Other noninterest income 7,164 6,955 5,940 Noninterest expenses 12,545 12,848 11,680 Income tax expense 2,308 2,055 2,268 Net income 5,043 4,574 4,955 PER SHARE ------------------------------------- Basic earnings $0.38 $0.35 $0.38 Diluted earnings $0.37 $0.34 $0.37 Dividends declared $0.17 $0.15 $0.17 SHARES OUTSTANDING ------------------------------------- Weighted Average: Basic 13,216.1 13,089.4 13,202.6 Diluted 13,517.0 13,304.9 13,513.3 AVERAGE BALANCE SHEET ------------------------------------- Federal funds sold and other short- term investments $11,072 $15,447 $11,155 Taxable debt securities 829,306 784,166 809,505 Nontaxable debt securities 16,118 16,137 14,235 Corporate stocks and Federal Home Loan Bank stock 56,358 51,795 54,518 Loans: Commercial 434,292 395,967 412,642 Residential 430,539 296,484 390,834 Consumer 192,529 137,929 170,589 ---------- ---------- ---------- Total loans 1,057,360 830,380 974,065 Earning assets 1,970,214 1,697,925 1,863,478 Total assets 2,091,943 1,819,463 1,988,142 Deposits: Demand 190,906 166,156 170,289 Savings 543,870 472,358 497,033 Time 545,266 479,266 527,531 ---------- ---------- ---------- Total deposits 1,280,042 1,117,780 1,194,853 Federal Home Loan Bank advances 656,802 549,161 633,195 Shareholders' equity 139,525 134,814 142,582 KEY RATIOS ------------------------------------- Return on average assets 0.96% 1.01% 1.00% Return on average equity 14.46% 13.57% 13.90% Interest rate spread (taxable equivalent basis) 2.47% 2.67% 2.62% Net interest margin (taxable equivalent basis) 2.72% 2.96% 2.87% ALLOWANCE FOR LOAN LOSSES ------------------------------------- Balance at beginning of period $16,174 $15,495 $15,914 Provision charged to earnings 120 160 120 Net (charge-offs) recoveries (86) 87 140 ---------- ---------- ---------- Balance at end of period $16,208 $15,742 $16,174 ---------- ---------- ---------- Washington Trust Bancorp, Inc. and Subsidiary FINANCIAL SUMMARY THREE MONTHS ENDED -------------------------------- (Dollars and shares in thousands, JUN. 30, JUN. 30, MAR. 31, except per share amounts) 2004 2003 2004 ---------- ---------- ---------- EARNINGS AND RATIOS EXCLUDING SPECIAL ITEMS ------------------------------------------- (Non GAAP Financial Information): Noninterest expenses (1) $12,545 $11,907 $11,680 Return on average assets (2) 0.96% 1.15% 1.00% Return on average equity (2) 14.46% 15.50% 13.90% Reconciliation Table - Non GAAP Financial Information ----------------------------------------------------- Net income, including special items $5,043 $4,574 $4,955 Add back special items, net of tax: Debt prepayment penalties - 649 - Net income, excluding special items $5,043 $5,223 $4,955 Basic earnings per share $0.38 $0.35 $0.38 Effects of special items, net of tax - 0.05 - Basic earnings per share, excluding special items $0.38 $0.40 $0.38 Diluted earnings per share $0.37 $0.34 $0.37 Effects of special items, net of tax - 0.05 - Diluted earnings per share, excluding special items $0.37 $0.39 $0.37 Return on average assets 0.96% 1.01% 1.00% Effects of special items, net of tax - 0.14% - Return on average assets, excluding special items 0.96% 1.15% 1.00% Return on average equity 14.46% 13.57% 13.90% Effects of special items, net of tax - 1.93% - Return on average equity, excluding special items 14.46% 15.50% 13.90% (1) Excludes second quarter 2003 Federal Home Loan Bank debt prepayment penalties of $941 thousand (pretax). (2) Excludes second quarter 2003 Federal Home Loan Bank debt prepayment penalties of $649 thousand after income taxes. Washington Trust Bancorp, Inc. and Subsidiary FINANCIAL SUMMARY SIX MONTHS ENDED --------------------- (Dollars and shares in thousands, JUN. 30, JUN. 30, except per share amounts) 2004 2003 ---------- ---------- OPERATING RESULTS ------------------------------------------------ Net interest income $26,175 $24,211 Provision for loan losses 240 260 Net realized (losses) gains on securities (240) 630 Other noninterest income 13,104 12,758 Noninterest expenses 24,225 23,826 Income tax expense 4,576 4,189 Net income 9,998 9,324 PER SHARE ------------------------------------------------ Basic earnings $0.76 $0.71 Diluted earnings $0.74 $0.70 Dividends declared $0.34 $0.30 SHARES OUTSTANDING ------------------------------------------------ Weighted Average: Basic 13,209.4 13,074.4 Diluted 13,515.2 13,265.2 AVERAGE BALANCE SHEET ------------------------------------------------ Federal funds sold and other short-term investments $11,114 $15,198 Taxable debt securities 819,405 774,624 Nontaxable debt securities 15,177 16,796 Corporate stocks and Federal Home Loan Bank stock 55,438 49,920 Loans: Commercial 423,467 392,774 Residential 410,686 294,391 Consumer 181,559 135,503 ---------- ---------- Total loans 1,015,712 822,668 Earning assets 1,916,846 1,679,206 Total assets 2,040,042 1,799,014 Deposits: Demand 180,598 161,078 Savings 520,451 466,102 Time 536,398 480,509 ---------- ---------- Total deposits 1,237,447 1,107,689 Federal Home Loan Bank advances 644,999 540,975 Shareholders' equity 141,053 132,672 KEY RATIOS ------------------------------------------------ Return on average assets 0.98% 1.04% Return on average equity 14.18% 14.06% Interest rate spread (taxable equivalent basis) 2.54% 2.67% Net interest margin (taxable equivalent basis) 2.80% 2.97% ALLOWANCE FOR LOAN LOSSES ------------------------------------------------ Balance at beginning of period $15,914 $15,487 Provision charged to earnings 240 260 Net (charge-offs) recoveries 54 (5) ---------- ---------- Balance at end of period $16,208 $15,742 ---------- ---------- Washington Trust Bancorp, Inc. and Subsidiary FINANCIAL SUMMARY SIX MONTHS ENDED -------------------- (Dollars and shares in thousands, JUN. 30, JUN. 30, except per share amounts) 2004 2003 ---------- --------- EARNINGS AND RATIOS EXCLUDING SPECIAL ITEMS ------------------------------------------- (Non GAAP Financial Information): Noninterest expenses (1) $24,225 $22,885 Return on average assets (2) 0.98% 1.11% Return on average equity (2) 14.18% 15.03% Reconciliation Table - Non GAAP Financial Information ----------------------------------------------------- Net income, including special items $9,998 $9,324 Add back special items, net of tax: Debt prepayment penalties - 649 Net income, excluding special items $9,998 $9,973 Basic earnings per share $0.76 $0.71 Effects of special items, net of tax - 0.05 Basic earnings per share, excluding special items $0.76 $0.76 Diluted earnings per share $0.74 $0.70 Effects of special items, net of tax - 0.05 Diluted earnings per share, excluding special items $0.74 $0.75 Return on average assets 0.98% 1.04% Effects of special items, net of tax - 0.07% Return on average assets, excluding special items 0.98% 1.11% Return on average equity 14.18% 14.06% Effects of special items, net of tax - 0.97% Return on average equity, excluding special items 14.18% 15.03% (1) Excludes second quarter 2003 Federal Home Loan Bank debt prepayment penalties of $941 thousand (pretax). (2) Excludes second quarter 2003 Federal Home Loan Bank debt prepayment penalties of $649 thousand after income taxes. Washington Trust Bancorp, Inc. and Subsidiary FINANCIAL SUMMARY (Dollars and shares in JUN. 30, MAR. 31, DEC. 31, JUN. 30, thousands, except per 2004 2004 2003 2003 share amounts) ----------- ----------- ----------- ----------- PERIOD END BALANCE SHEET ------------------------ Assets $2,178,990 $2,054,232 $1,973,807 $1,839,412 Total securities 902,998 884,592 839,421 846,901 Loans: Commercial 448,341 421,440 408,477 394,793 Residential 451,055 400,564 389,855 284,621 Consumer 201,643 182,344 162,649 143,380 ----------- ----------- ----------- ----------- Total loans 1,101,039 1,004,348 960,981 822,794 Deposits: Demand 200,923 179,468 194,144 183,785 Savings 566,976 522,477 493,878 482,876 Time 574,004 542,814 518,119 469,543 ----------- ----------- ----------- ----------- Total deposits 1,341,903 1,244,759 1,206,141 1,136,204 Brokered deposits included in time deposits 153,373 126,243 118,234 71,061 Federal Home Loan Bank advances 676,336 644,203 607,104 543,878 Shareholders' equity 138,542 144,571 138,055 135,191 CAPITAL RATIOS ----------------------- Tier 1 risk-based capital 9.41% 9.84% 10.00% 10.28% Total risk-based capital 10.95% 11.42% 11.57% 11.76% Tier 1 leverage ratio 5.51% 5.66% 5.65% 5.66% SHARE INFORMATION ----------------------- Shares outstanding at end of period 13,227.9 13,206.9 13,194.6 13,115.1 Book value per share $10.47 $10.95 $10.46 $10.31 Tangible book value per share $8.64 $9.10 $8.60 $8.41 Market value per share $25.99 $26.40 $26.20 $23.02 CREDIT QUALITY ----------------------- Nonaccrual loans $4,987 $2,920 $2,743 $3,130 Other real estate owned, net 8 11 11 10 Nonperforming assets to total assets 0.23% 0.14% 0.14% 0.17% Nonaccrual loans to total loans 0.45% 0.29% 0.29% 0.38% Allowance for loan losses to nonaccrual loans 325.01% 553.90% 580.17% 502.94% Allowance for loan losses to total loans 1.47% 1.61% 1.66% 1.91% ASSETS UNDER ADMINISTRATION --------------------------- Market value $1,783,747 $1,782,153 $1,741,948 $1,576,092 Washington Trust Bancorp, Inc. and Subsidiary CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Unaudited) June 30, December 31, 2004 2003 ---------------------------------------------------------------------- Assets: Cash and due from banks $46,261 $40,710 Federal funds sold and other short-term investments 9,320 20,400 Mortgage loans held for sale 990 2,486 Securities: Available for sale, at fair value; amortized cost $767,674 in 2004 and $663,529 in 2003 769,328 673,845 Held to maturity, at cost; fair value $134,860 in 2004 and $169,401 in 2003 133,670 165,576 ---------------------------------------------------------------------- Total securities 902,998 839,421 Federal Home Loan Bank stock, at cost 34,373 31,464 Loans 1,101,039 960,981 Less allowance for loan losses 16,208 15,914 ---------------------------------------------------------------------- Net loans 1,084,831 945,067 Premises and equipment, net 24,805 24,941 Accrued interest receivable 8,411 7,911 Goodwill 22,591 22,591 Identifiable intangible assets 1,631 1,953 Other assets 42,779 36,863 ---------------------------------------------------------------------- Total assets $2,178,990 $1,973,807 ---------------------------------------------------------------------- Liabilities: Deposits: Demand $200,923 $194,144 Savings 566,976 493,878 Time 574,004 518,119 ---------------------------------------------------------------------- Total deposits 1,341,903 1,206,141 Dividends payable 2,250 2,113 Federal Home Loan Bank advances 676,336 607,104 Other borrowings 2,947 2,311 Accrued expenses and other liabilities 17,012 18,083 ---------------------------------------------------------------------- Total liabilities 2,040,448 1,835,752 ---------------------------------------------------------------------- Shareholders' Equity: Common stock of $.0625 par value; authorized 30 million shares; issued 13,236,649 shares in 2004 and 13,204,024 shares in 2003 827 825 Paid-in capital 30,317 29,868 Retained earnings 106,994 101,492 Unamortized employee restricted stock (11) (22) Accumulated other comprehensive income 609 6,101 Treasury stock, at cost; 8,719 shares in 2004 and 9,463 in 2003 (194) (209) ---------------------------------------------------------------------- Total shareholders' equity 138,542 138,055 ---------------------------------------------------------------------- Total liabilities and shareholders' equity $2,178,990 $1,973,807 ---------------------------------------------------------------------- Washington Trust Bancorp, Inc. and Subsidiary CONSOLIDATED STATEMENTS OF INCOME (Dollars and shares in thousands, except per share amounts) (Unaudited) Three Months Six Months Periods ended June 30, 2004 2003 2004 2003 ---------------------------------------------------------------------- Interest income: Interest and fees on loans $14,287 $12,853 $27,928 $25,499 Interest on securities 8,107 8,333 16,362 16,888 Dividends on corporate stock and Federal Home Loan Bank stock 506 531 980 1,018 Interest on federal funds sold and other short-term investments 20 39 40 76 ---------------------------------------------------------------------- Total interest income 22,920 21,756 45,310 43,481 ---------------------------------------------------------------------- Interest expense: Savings deposits 894 880 1,623 1,830 Time deposits 4,130 3,799 8,148 7,733 Federal Home Loan Bank advances 4,789 4,777 9,334 9,670 Other 15 18 30 37 ---------------------------------------------------------------------- Total interest expense 9,828 9,474 19,135 19,270 ---------------------------------------------------------------------- Net interest income 13,092 12,282 26,175 24,211 Provision for loan losses 120 160 240 260 ---------------------------------------------------------------------- Net interest income after provision for loan losses 12,972 12,122 25,935 23,951 ---------------------------------------------------------------------- Noninterest income: Trust and investment management 3,320 2,744 6,375 5,277 Service charges on deposit accounts 1,192 1,348 2,362 2,448 Merchant processing fees 1,095 862 1,692 1,319 Net gains on loan sales 560 1,441 909 2,679 Income from bank-owned life insurance 295 263 594 547 Net realized (losses) gains on securities (240) 400 (240) 630 Other income 702 297 1,172 488 ---------------------------------------------------------------------- Total noninterest income 6,924 7,355 12,864 13,388 ---------------------------------------------------------------------- Noninterest expense: Salaries and employee benefits 7,218 6,619 14,195 13,153 Net occupancy 796 736 1,612 1,498 Equipment 788 837 1,558 1,674 Merchant processing costs 882 683 1,348 1,045 Advertising and promotion 538 542 1,004 812 Outsourced services 467 325 843 696 Legal, audit and professional fees 245 281 503 586 Debt prepayment penalties - 941 - 941 Amortization of intangibles 161 179 322 359 Other 1,450 1,705 2,840 3,062 ---------------------------------------------------------------------- Total noninterest expense 12,545 12,848 24,225 23,826 ---------------------------------------------------------------------- Income before income taxes 7,351 6,629 14,574 13,513 Income tax expense 2,308 2,055 4,576 4,189 ---------------------------------------------------------------------- Net income $5,043 $4,574 $9,998 $9,324 ---------------------------------------------------------------------- Weighted average shares outstanding - basic 13,216.1 13,089.4 13,209.4 13,074.4 Weighted average shares outstanding - diluted 13,517.0 13,304.9 13,515.2 13,265.2 Per share information: Basic earnings per share $.38 $.35 $.76 $.71 Diluted earnings per share $.37 $.34 $.74 $.70 Cash dividends declared per share $.17 $.15 $.34 $.30 CONTACT: Washington Trust Bancorp, Inc. David V. Devault, 401-348-1319 dvdevault@washtrust.com