Washington Trust Announces Earnings First Quarter Operating Earnings Up 8.3%

Apr 19, 2001, 01:00 ET from Washington Trust Bancorp, Inc.

    WESTERLY, R.I., April 19 /PRNewswire/ -- Washington Trust Bancorp, Inc.
 (Nasdaq National Market; symbol: WASH), parent of The Washington Trust
 Company, today reported net income of $3.5 million, or 29 cents per diluted
 share, for the three months ended March 31, 2001.  Earnings for the first
 quarter of 2001 increased by 8.3 percent from the $3.2 million of operating
 earnings for the first quarter of 2000.  Return on average assets and average
 equity for the quarter ended March 31, 2001 were 1.14% and 15.20%,
 respectively.
     "Despite a challenging economic environment, Washington Trust continued
 its solid performance in the first quarter of 2001," stated John C. Warren,
 Washington Trust Chairman and Chief Executive Officer.  "We maintained very
 strong asset quality and increased noninterest income, a key source of revenue
 for the Bank."
     For the first quarter of 2001, net interest income amounted to $9.6
 million, an increase of 4.4 percent from the $9.2 million earned in the first
 quarter of 2000.  The net interest margin for the first quarter of 2001 was
 3.44%, compared to 3.60% in the first quarter of 2000.
     Noninterest income (excluding net gains on sales of securities) amounted
 to $4.6 million for the three months ended March 31, 2001, up 4.7 percent from
 the $4.4 million reported for the first quarter of 2000.  Primary sources of
 noninterest income are trust and investment management fees, service charges
 on deposit accounts, merchant processing fees and mortgage banking activities.
 Trust and investment management income totaled $2.6 million and $2.5 million
 for the quarters ended March 31, 2001 and 2000, respectively.  Revenue growth
 has slowed reflecting the financial market declines. Trust and investment
 management assets under administration amounted to $1.5 billion at March 31,
 2001.
     Nonperforming assets (nonaccrual loans and property acquired through
 foreclosure) amounted to $3.5 million or .26% of total assets at March 31,
 2001, compared to $3.4 million or .28% of total assets at December  31, 2000.
 The allowance for loan losses amounted to $13.4 million, or 2.21% of total
 loans at March 31, 2001, compared to $13.1 million, or 2.20% of total loans at
 December 31, 2000.  The Corporation's loan loss provision amounted to $200
 thousand and $350 thousand for the three months ended March 31, 2001 and 2000,
 respectively.
     Total assets amounted to $1.317 billion at March 31, 2001, up $99.2
 million, or 8.1 percent, from the December 31, 2000 balance of $1.218 billion.
 Total loans amounted to $606.7 million at March 31, 2001, up $9.5 million from
 the December 31, 2000 amount of $597.2 million. Total securities amounted to
 $578.9 million at March 31, 2001, up $67.4 million from $511.5 million at
 December 31, 2000.  Purchases of securities were funded primarily with Federal
 Home Loan Bank (FHLB) advances.  FHLB advances totaled $466.8 million at March
 31, 2001, up from $377.4 million at December 31, 2000.  Total deposits
 amounted to $743.1 million at March 31, 2001, an increase of $7.4 million from
 the December 31, 2000 balance of $735.7 million.
     Total shareholders' equity amounted to $93.3 million at March 31, 2001, up
 from $89.2 million at December 31, 2000.  Book value per share as of March 31,
 2001 and December 31, 2000 amounted to $7.76 and $7.43, respectively.
     Washington Trust Bancorp, Inc. acquired Phoenix Investment Management
 Company, Inc. on June 26, 2000.  This news release presents consolidated
 financial results.  Historical comparisons represent pooled results of the two
 corporations.
     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.
     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 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 deposit levels necessitating increased
 borrowing to fund loans and investments, changes in the size and nature of the
 Corporation's competition, changes in loan default and charge-off rates, risk
 of an adverse action pending litigation, and changes in the assumptions used
 in making such forward-looking statements.
 
                 Washington Trust Bancorp, Inc. and Subsidiary
                               FINANCIAL SUMMARY
 
 (Dollars and shares in thousands,
    except per share amounts)                   THREE MONTHS ENDED
                                    MAR. 31,        MAR. 31,      DEC. 31,
     OPERATING RESULTS                  2001            2000          2000
     Net interest income              $9,575          $9,168        $9,603
     Provision for loan losses           200             350           200
     Net gains on sales of securities      5             384             2
     Other noninterest income          4,584           4,377         4,386
     Noninterest expenses              8,948           8,909         8,608
     Net income                        3,497           3,432         3,641
     Net income -
      operating basis (1)              3,497           3,229         3,641
 
     PER SHARE
     Basic earnings                    $0.29           $0.29         $0.30
     Basic earnings -
      operating basis (1)              $0.29           $0.27         $0.30
     Diluted earnings                  $0.29           $0.28         $0.30
     Diluted earnings -
      operating basis (1)              $0.29           $0.27         $0.30
     Dividends declared (2)            $0.13           $0.12         $0.12
 
     SHARES OUTSTANDING
     Weighted Average: Basic        12,012.2        11,936.2      11,999.7
     Diluted                        12,123.2        12,094.5      12,103.3
 
     AVERAGE BALANCE SHEET
     Assets                       $1,229,747      $1,114,002    $1,195,019
     Investments                     532,806         473,808       513,084
     Total loans                     600,908         550,075       588,301
     Earning assets                1,160,442       1,053,728     1,130,219
     Deposits                        724,825         664,908       727,989
     Shareholders' equity             92,043          78,901        86,884
 
     KEY RATIOS
     Return on average assets          1.14%           1.23%         1.22%
     Return on average assets -
      operating basis (1)              1.14%           1.16%         1.22%
     Return on average equity         15.20%          17.40%        16.76%
     Return on average equity -
      operating basis (1)             15.20%          16.37%        16.76%
     Interest rate spread
      (taxable equivalent basis)       2.86%           3.08%         2.83%
     Net interest margin
      (taxable equivalent basis)       3.44%           3.60%         3.47%
 
     ALLOWANCE FOR LOAN LOSSES
     Balance at beginning of period  $13,135         $12,349       $13,145
     Provision charged to earnings       200             350           200
     Net (charge-offs) recoveries         96           (159)         (210)
 
     Balance at end of period        $13,431         $12,540       $13,135
 
     Financial data for Q1-2000 have been restated to reflect the acquisition
     of Phoenix Investment Management Company, Inc., which was completed on
     June 26, 2000.The acquisition was accounted for under the pooling of
     interests method.
 
     NOTE(1): Amounts presented for the three months ended March 31, 2000
              include a pro forma income tax provision on pre-acquisition
              earnings of Phoenix Investment Management Company, Inc., which
              operated as a sub-S corporation prior to the acquisition.The pro
              forma income tax provision amounted to $203 thousand for the
              quarter ended March 31, 2000.
 
         (2): Represents historical dividends declared by Washington Trust
              Bancorp, Inc.
 
 
                   Washington Trust Bancorp, Inc. and Subsidiary
                                 FINANCIAL SUMMARY
 
     (Dollars and shares in thousands,
     except per share amounts)
                                    MAR. 31,        MAR. 31,      DEC. 31,
     PERIOD END BALANCE SHEET           2001            2000          2000
     Assets                       $1,317,249      $1,143,926    $1,218,067
     Investments                     578,888         489,615       511,526
     Total loans                     606,709         555,017       597,155
     Deposits                        743,140         677,910       735,684
     Federal Home Loan Bank
      advances                       466,825         373,423       377,362
     Shareholders' equity             93,258          79,697        89,186
 
 
     SHARE INFORMATION
     Shares outstanding at end
      of period                     12,020.3        11,950.4      12,006.8
     Book value per share              $7.76           $6.67         $7.43
     Market value per share           $17.75          $16.00        $14.00
 
 
     CREDIT QUALITY
     Nonaccrual loans                 $3,316          $3,717        $3,434
     Other real estate owned, net        163             142             9
     Nonperforming assets
      to total assets                  0.26%           0.34%         0.28%
     Nonaccrual loans to total
      loans                            0.55%           0.67%         0.58%
     Allowance for loan losses
      to nonaccrual loans            405.04%         337.36%       382.50%
     Allowance for loan losses
      to total loans                   2.21%           2.26%         2.20%
 
     Financial data for Q1-2000 have been restated to reflect the acquisition
 of Phoenix Investment Management Company, Inc., which was completed on June
 26, 2000.  The acquisition was accounted for under the pooling of interests
 method.
 
 

SOURCE Washington Trust Bancorp, Inc.
    WESTERLY, R.I., April 19 /PRNewswire/ -- Washington Trust Bancorp, Inc.
 (Nasdaq National Market; symbol: WASH), parent of The Washington Trust
 Company, today reported net income of $3.5 million, or 29 cents per diluted
 share, for the three months ended March 31, 2001.  Earnings for the first
 quarter of 2001 increased by 8.3 percent from the $3.2 million of operating
 earnings for the first quarter of 2000.  Return on average assets and average
 equity for the quarter ended March 31, 2001 were 1.14% and 15.20%,
 respectively.
     "Despite a challenging economic environment, Washington Trust continued
 its solid performance in the first quarter of 2001," stated John C. Warren,
 Washington Trust Chairman and Chief Executive Officer.  "We maintained very
 strong asset quality and increased noninterest income, a key source of revenue
 for the Bank."
     For the first quarter of 2001, net interest income amounted to $9.6
 million, an increase of 4.4 percent from the $9.2 million earned in the first
 quarter of 2000.  The net interest margin for the first quarter of 2001 was
 3.44%, compared to 3.60% in the first quarter of 2000.
     Noninterest income (excluding net gains on sales of securities) amounted
 to $4.6 million for the three months ended March 31, 2001, up 4.7 percent from
 the $4.4 million reported for the first quarter of 2000.  Primary sources of
 noninterest income are trust and investment management fees, service charges
 on deposit accounts, merchant processing fees and mortgage banking activities.
 Trust and investment management income totaled $2.6 million and $2.5 million
 for the quarters ended March 31, 2001 and 2000, respectively.  Revenue growth
 has slowed reflecting the financial market declines. Trust and investment
 management assets under administration amounted to $1.5 billion at March 31,
 2001.
     Nonperforming assets (nonaccrual loans and property acquired through
 foreclosure) amounted to $3.5 million or .26% of total assets at March 31,
 2001, compared to $3.4 million or .28% of total assets at December  31, 2000.
 The allowance for loan losses amounted to $13.4 million, or 2.21% of total
 loans at March 31, 2001, compared to $13.1 million, or 2.20% of total loans at
 December 31, 2000.  The Corporation's loan loss provision amounted to $200
 thousand and $350 thousand for the three months ended March 31, 2001 and 2000,
 respectively.
     Total assets amounted to $1.317 billion at March 31, 2001, up $99.2
 million, or 8.1 percent, from the December 31, 2000 balance of $1.218 billion.
 Total loans amounted to $606.7 million at March 31, 2001, up $9.5 million from
 the December 31, 2000 amount of $597.2 million. Total securities amounted to
 $578.9 million at March 31, 2001, up $67.4 million from $511.5 million at
 December 31, 2000.  Purchases of securities were funded primarily with Federal
 Home Loan Bank (FHLB) advances.  FHLB advances totaled $466.8 million at March
 31, 2001, up from $377.4 million at December 31, 2000.  Total deposits
 amounted to $743.1 million at March 31, 2001, an increase of $7.4 million from
 the December 31, 2000 balance of $735.7 million.
     Total shareholders' equity amounted to $93.3 million at March 31, 2001, up
 from $89.2 million at December 31, 2000.  Book value per share as of March 31,
 2001 and December 31, 2000 amounted to $7.76 and $7.43, respectively.
     Washington Trust Bancorp, Inc. acquired Phoenix Investment Management
 Company, Inc. on June 26, 2000.  This news release presents consolidated
 financial results.  Historical comparisons represent pooled results of the two
 corporations.
     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.
     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 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 deposit levels necessitating increased
 borrowing to fund loans and investments, changes in the size and nature of the
 Corporation's competition, changes in loan default and charge-off rates, risk
 of an adverse action pending litigation, and changes in the assumptions used
 in making such forward-looking statements.
 
                 Washington Trust Bancorp, Inc. and Subsidiary
                               FINANCIAL SUMMARY
 
 (Dollars and shares in thousands,
    except per share amounts)                   THREE MONTHS ENDED
                                    MAR. 31,        MAR. 31,      DEC. 31,
     OPERATING RESULTS                  2001            2000          2000
     Net interest income              $9,575          $9,168        $9,603
     Provision for loan losses           200             350           200
     Net gains on sales of securities      5             384             2
     Other noninterest income          4,584           4,377         4,386
     Noninterest expenses              8,948           8,909         8,608
     Net income                        3,497           3,432         3,641
     Net income -
      operating basis (1)              3,497           3,229         3,641
 
     PER SHARE
     Basic earnings                    $0.29           $0.29         $0.30
     Basic earnings -
      operating basis (1)              $0.29           $0.27         $0.30
     Diluted earnings                  $0.29           $0.28         $0.30
     Diluted earnings -
      operating basis (1)              $0.29           $0.27         $0.30
     Dividends declared (2)            $0.13           $0.12         $0.12
 
     SHARES OUTSTANDING
     Weighted Average: Basic        12,012.2        11,936.2      11,999.7
     Diluted                        12,123.2        12,094.5      12,103.3
 
     AVERAGE BALANCE SHEET
     Assets                       $1,229,747      $1,114,002    $1,195,019
     Investments                     532,806         473,808       513,084
     Total loans                     600,908         550,075       588,301
     Earning assets                1,160,442       1,053,728     1,130,219
     Deposits                        724,825         664,908       727,989
     Shareholders' equity             92,043          78,901        86,884
 
     KEY RATIOS
     Return on average assets          1.14%           1.23%         1.22%
     Return on average assets -
      operating basis (1)              1.14%           1.16%         1.22%
     Return on average equity         15.20%          17.40%        16.76%
     Return on average equity -
      operating basis (1)             15.20%          16.37%        16.76%
     Interest rate spread
      (taxable equivalent basis)       2.86%           3.08%         2.83%
     Net interest margin
      (taxable equivalent basis)       3.44%           3.60%         3.47%
 
     ALLOWANCE FOR LOAN LOSSES
     Balance at beginning of period  $13,135         $12,349       $13,145
     Provision charged to earnings       200             350           200
     Net (charge-offs) recoveries         96           (159)         (210)
 
     Balance at end of period        $13,431         $12,540       $13,135
 
     Financial data for Q1-2000 have been restated to reflect the acquisition
     of Phoenix Investment Management Company, Inc., which was completed on
     June 26, 2000.The acquisition was accounted for under the pooling of
     interests method.
 
     NOTE(1): Amounts presented for the three months ended March 31, 2000
              include a pro forma income tax provision on pre-acquisition
              earnings of Phoenix Investment Management Company, Inc., which
              operated as a sub-S corporation prior to the acquisition.The pro
              forma income tax provision amounted to $203 thousand for the
              quarter ended March 31, 2000.
 
         (2): Represents historical dividends declared by Washington Trust
              Bancorp, Inc.
 
 
                   Washington Trust Bancorp, Inc. and Subsidiary
                                 FINANCIAL SUMMARY
 
     (Dollars and shares in thousands,
     except per share amounts)
                                    MAR. 31,        MAR. 31,      DEC. 31,
     PERIOD END BALANCE SHEET           2001            2000          2000
     Assets                       $1,317,249      $1,143,926    $1,218,067
     Investments                     578,888         489,615       511,526
     Total loans                     606,709         555,017       597,155
     Deposits                        743,140         677,910       735,684
     Federal Home Loan Bank
      advances                       466,825         373,423       377,362
     Shareholders' equity             93,258          79,697        89,186
 
 
     SHARE INFORMATION
     Shares outstanding at end
      of period                     12,020.3        11,950.4      12,006.8
     Book value per share              $7.76           $6.67         $7.43
     Market value per share           $17.75          $16.00        $14.00
 
 
     CREDIT QUALITY
     Nonaccrual loans                 $3,316          $3,717        $3,434
     Other real estate owned, net        163             142             9
     Nonperforming assets
      to total assets                  0.26%           0.34%         0.28%
     Nonaccrual loans to total
      loans                            0.55%           0.67%         0.58%
     Allowance for loan losses
      to nonaccrual loans            405.04%         337.36%       382.50%
     Allowance for loan losses
      to total loans                   2.21%           2.26%         2.20%
 
     Financial data for Q1-2000 have been restated to reflect the acquisition
 of Phoenix Investment Management Company, Inc., which was completed on June
 26, 2000.  The acquisition was accounted for under the pooling of interests
 method.
 
 SOURCE  Washington Trust Bancorp, Inc.