株探米国株
日本語 英語
エドガーで原本を確認する
0000737468FALSE00007374682023-01-252023-01-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 25, 2023
WASHINGTON TRUST BANCORP, INC.
(Exact Name of Registrant as Specified in Charter)
Rhode Island 001-32991 05-0404671
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
23 Broad Street
Westerly, Rhode Island 02891
(Address of principal executive offices) (Zip Code)
(401) 348-1200
(Registrant's telephone number, including area code)
N/A
(Former name or address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act.




Item 2.02 Results of Operations and Financial Condition.

On January 25, 2023, Washington Trust Bancorp, Inc. issued a press release in which it disclosed unaudited financial information related to fourth quarter 2022 consolidated earnings. A copy of the press release relating to such announcement, dated January 25, 2023, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Pursuant to General Instructions B.2 of Form 8-K, this information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Exhibit
Press release dated January 25, 2023*
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
*Filed herewith



SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


WASHINGTON TRUST BANCORP, INC.
Date: January 25, 2023 By: /s/ Ronald S. Ohsberg
Ronald S. Ohsberg
Senior Executive Vice President, Chief Financial Officer and Treasurer


EX-99.1 2 exhibit9912022q4.htm EX-99.1 Document
Exhibit 99.1

bancorpflatbluehorizontalaa.jpg
    NASDAQ: WASH
Contact: Elizabeth B. Eckel
EVP, Chief Marketing & Corporate Communications Officer
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: January 25, 2023
FOR IMMEDIATE RELEASE


Washington Trust Reports Fourth Quarter and Full-Year 2022 Earnings

WESTERLY, R.I., January 25, 2023 (PR NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2022 net income of $16.6 million, or $0.95 per diluted share, compared to net income of $18.7 million, or $1.08 per diluted share, for the third quarter of 2022. Net income for the year ended December 31, 2022 totaled $71.7 million, or $4.11 per diluted share, compared to $76.9 million, or $4.39 per diluted share, reported for the prior year.

“Washington Trust’s fourth quarter and full-year 2022 results were solid, yet reflect the challenges of operating in an inflationary environment. Total loans reached a record high and asset quality remained strong,” stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. “We enter 2023 poised to face continued economic headwinds with our time-tested business model, disciplined credit approach and strong capital position.”

Selected financial highlights for the fourth quarter and full-year 2022 include:
•Returns on average equity and average assets for the fourth quarter were 14.96% and 1.01%, respectively, compared to 15.16% and 1.19%, respectively, for the preceding quarter. Full-year returns on average equity and average assets for 2022 were 14.49% and 1.17%, respectively, compared to 14.03% and 1.32%, respectively, for the prior year.
•In the fourth quarter, a provision for credit losses of $800 thousand was recognized, consistent with the provision recognized in the preceding quarter. For the full-year 2022, a negative provision for credit losses (or a benefit) of $1.3 million was recognized, compared to a negative provision (or a benefit) of $4.8 million in 2021.
•Total loans amounted to an all-time high of $5.1 billion, up by $261 million, or 5%, from the end of the preceding quarter, reflecting strong loan growth in both the residential real estate loan and commercial loan portfolios. Total loans were up by $837 million, or 20%, from the balance at December 31, 2021.
•In-market deposits (total deposits less wholesale brokered deposits) amounted to $4.7 billion at December 31, 2022, up by $34 million, or 1%, from the end of the preceding quarter and up by $196 million, or 4%, from the balance at December 31, 2021.
•A quarterly dividend of 56 cents per share was declared for the fourth quarter, representing an increase of 2 cents per share over the most recent quarterly dividend rate. 2022 was the twelfth consecutive year with an annual dividend increase.

-1-

Washington Trust
January 25, 2023
Net Interest Income
Net interest income was $41.3 million for the fourth quarter of 2022, down by $700 thousand, or 2%, from the third quarter of 2022. The net interest margin was 2.65% for the fourth quarter, down by 17 basis points from the preceding quarter. The declines in net interest income and the net interest margin were largely driven by increases in funding costs outpacing increases in asset yields. Linked quarter changes included:
•Average interest-earning assets increased by $294 million, reflecting an increase of $274 million in average loans. The yield on interest-earning assets for the fourth quarter was 3.94%, up by 45 basis points from the preceding quarter, reflecting the impact of higher market interest rates.
•Average interest-bearing liabilities increased by $304 million, due to increases in average wholesale funding balances and average in-market deposits of $220 million and $84 million, respectively. The cost of interest-bearing liabilities for the fourth quarter of 2022 was 1.64%, up by 78 basis points from the preceding quarter, reflecting higher rates paid on wholesale funding sources and money market accounts.

Noninterest Income
Noninterest income totaled $13.8 million for the fourth quarter of 2022, down by $2.0 million, or 12.8%, from the third quarter of 2022. Linked quarter changes included:
•Wealth management revenues amounted to $8.6 million in the fourth quarter of 2022, down by $901 thousand, or 9%, on a linked quarter basis, concentrated in asset-based revenues. The change in asset-based revenues correlated with the change in the average balance of wealth management assets under administration ("AUA"). The average balance of AUA for the fourth quarter of 2022 decreased by approximately $527 million, or 8%, from the average balance for the preceding quarter.
The end of period AUA balance at December 31, 2022 amounted to $6.0 billion, down by $361 million, or 6%, from September 30, 2022. This decline reflected net client asset outflows of $673 million, partially offset by net investment appreciation of $312 million.
AUA was adversely impacted by $604 million of client asset withdrawals that occurred throughout the fourth quarter and were associated with the departure of four client-facing advisors at the end of the preceding quarter. The withdrawals resulted in a reduction of revenues of approximately $525 thousand in the fourth quarter of 2022. Washington Trust could experience additional client asset withdrawals in upcoming months associated with the departure of the former advisors.
•Mortgage banking revenues totaled $1.1 million for the fourth quarter of 2022, down by $944 thousand, or 46%, from the third quarter of 2022, largely reflecting both a lower volume of loans sold and a decline in the sales yield on loans sold to the secondary market. Mortgage loans sold to the secondary market amounted to $54.6 million in the fourth quarter of 2022, down by $20.8 million, or 28%, from the preceding quarter.
•Loan related derivative income was $745 thousand in the fourth quarter of 2022, down by $296 thousand, or 28%, from the preceding quarter, reflecting a decrease in commercial borrower interest rate derivative transactions.

Noninterest Expense
Noninterest expense totaled $33.4 million for the fourth quarter of 2022, up by $292 thousand, or 1%, from the third quarter of 2022.
-2-

Washington Trust
January 25, 2023
During the fourth quarter of 2022, Washington Trust made a contribution to its charitable foundation totaling $600 thousand, which was included in other expenses. Excluding the charitable contribution expense, noninterest expense was down by $308 thousand, or 1%, from the preceding quarter. The remaining linked quarter changes included:
•Salaries and employee benefits expense, the largest component of noninterest expense, amounted to $20.8 million for the fourth quarter of 2022, down by $797 thousand, or 4%, from the preceding quarter, reflecting adjustments to performance-based compensation accruals, lower wealth management compensation expense and volume-related decreases in mortgage originator compensation expense.
•Legal, audit and professional fees totaled $987 thousand, up by $294 thousand, or 42%, from the third quarter of 2022, reflecting higher legal expenses.

Income Tax
Income tax expense totaled $4.4 million for the fourth quarter of 2022, down by $912 thousand from the preceding quarter. The effective tax rate for the fourth quarter of 2022 was 21.0%, compared to 22.1% in the preceding quarter. Based on current federal and applicable state income statutes, the Corporation currently expects its full-year 2023 effective tax rate to be approximately 21.1%.

Investment Securities
The securities portfolio totaled $994 million at December 31, 2022, up by $11 million, or 1%, from September 30, 2022, largely reflecting an increase in the fair value of available for sale securities due to changes in interest rates. Purchases of U.S. government-sponsored mortgage-backed securities were offset by routine pay-downs. The securities portfolio represented 15% of total assets at both December 31, 2022 and September 30, 2022.

Loans
Total loans amounted to $5.1 billion at December 31, 2022, up by $261 million, or 5%, from the end of the preceding quarter. Linked quarter changes included:
•Commercial loans increased by $70 million, or 3%, from September 30, 2022, reflecting originations and advances of approximately $194 million, partially offset by principal payments of approximately $124 million. Commercial loans were up by 9% from the end of 2021 and were up by 11% when excluding the change in Paycheck Protection Program loan balances.
•Residential real estate loans increased by $179 million, or 8%, from September 30, 2022 and by $596 million, or 35%, from the end of 2021. Residential real estate loans originated for portfolio amounted to $229 million and $882 million, respectively, for the fourth quarter and full-year 2022. Full-year 2022 residential real estate loan originations for portfolio were up by 17% from the preceding year.
•The consumer loan portfolio increased by $12 million, or 4%, from September 30, 2022 and by $36 million, or 14%, from the end of 2021, due to growth in home equity lines and loans.

Deposits and Borrowings
At December 31, 2022, in-market deposits, which exclude wholesale brokered deposits, amounted to $4.7 billion. In-market deposits were up by $34 million, or 1%, from the end of the preceding quarter and up by $196 million, or 4%, from the end of 2021.
-3-

Washington Trust
January 25, 2023
Wholesale brokered deposits amounted to $358 million, down by $85 million, or 19%, from September 30, 2022 and down by $157 million, or 30%, from the end of 2021. Total deposits amounted to $5.0 billion at December 31, 2022, down by $51 million, or 1%, from the end of the preceding quarter, and up by $39 million, or 1%, from the end of 2021.

FHLB advances totaled $980 million at December 31, 2022, up by $280 million, or 40%, from September 30, 2022, and up by $835 million, or 576%, from the end of 2021. Higher levels of wholesale funding were utilized to fund balance sheet growth.

Asset Quality
Nonaccrual loans were $12.8 million, or 0.25% of total loans, at December 31, 2022, compared to $12.1 million, or 0.25% of total loans, at September 30, 2022. Past due loans were $11.6 million, or 0.23% of total loans, at December 31, 2022, up from $7.5 million, or 0.16% of total loans, at September 30, 2022.

The allowance for credit losses ("ACL") on loans amounted to $38.0 million, or 0.74% of total loans, at December 31, 2022, compared to $36.9 million, or 0.76% of total loans, at September 30, 2022. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, was $2.3 million at December 31, 2022, compared to $2.4 million at September 30, 2022.

The provision for credit losses totaled $800 thousand in the fourth quarter of 2022 and was consistent with the amount recognized in the preceding quarter. The provision for credit losses in the fourth quarter of 2022 provided for net growth in residential real estate loans and commercial real estate loans and also reflected continued negative trends in macroeconomic forecasts. Actual losses remain low, as asset and credit quality metrics remain strong. In the fourth quarter of 2022, net recoveries of $264 thousand were recognized, compared to net charge-offs of $54 thousand in the preceding quarter. For the full-year 2022, net recoveries of $368 thousand were recognized, compared to net charge-offs of $417 thousand in 2021.

Capital and Dividends
Total shareholders' equity was $453.7 million at December 31, 2022, up by $21.4 million, or 5%, from September 30, 2022. The increase included net income of $16.6 million and an increase of $14.0 million in the accumulated other comprehensive income ("AOCI") component of shareholders' equity, partially offset by $9.7 million in dividend declarations. The increase in AOCI included an increase in the fair value of available for sale securities, as well as a $3.8 million increase associated with the annual remeasurement of pension liabilities. The increase from the annual remeasurement of pension liabilities was largely due to an increase in the discount rates used to measure the present value of the pension plan liabilities, resulting from higher market interest rates.

Capital levels at December 31, 2022 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.37% at December 31, 2022, compared to 12.65% at September 30, 2022. Book value per share was $26.40 at December 31, 2022, compared to $25.17 at September 30, 2022.

The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended December 31, 2022, representing an increase of 2 cents per share, or 4%, from the preceding quarter. The dividend was paid on January 6, 2023 to shareholders of record on January 3, 2023.
-4-

Washington Trust
January 25, 2023
Full-year dividends declared totaled $2.18 per share in 2022, an increase of 8 cents per share, or 4%, from 2021.

Conference Call
Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 26, 2023 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-844-200-6205 and enter Access Code 302754. 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 Access Code 489603. The audio replay will be available through February 9, 2023. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, https://ir.washtrust.com, and will be available through March 31, 2023.

-5-

Washington Trust
January 25, 2023
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 website at https://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 U.S. Securities and Exchange Commission ("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:
•changes in political, business and economic conditions, including inflation;
•interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;
•changes in loan demand and collectability;
•the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments;
•ongoing volatility in national and international financial markets;
•reductions in the market value or outflows of wealth management AUA;
•decreases in the value of securities and other assets;
•increases in defaults and charge-off rates;
•changes in the size and nature of our competition;
•changes in legislation or regulation and accounting principles, policies and guidelines;
•operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, the ongoing COVID-19 pandemic, and future pandemics;
•reputational risks; 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, 2021, 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.

-6-


Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; Dollars in thousands)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Assets:
Cash and due from banks $115,492  $130,066  $95,544  $224,807  $175,259 
Short-term investments 2,930  2,773  3,079  3,289  3,234 
Mortgage loans held for sale, at fair value
8,987  24,054  22,656  15,612  40,196 
Available for sale debt securities, at fair value 993,928  982,573  1,020,469  1,008,184  1,042,859 
Federal Home Loan Bank stock, at cost 43,463  32,940  16,300  8,452  13,031 
Loans:
Total loans
5,110,139  4,848,873  4,479,822  4,283,852  4,272,925 
Less: allowance for credit losses on loans
38,027  36,863  36,317  39,236  39,088 
Net loans
5,072,112  4,812,010  4,443,505  4,244,616  4,233,837 
Premises and equipment, net 31,550  30,152  29,694  28,878  28,908 
Operating lease right-of-use assets 27,156  27,788  28,098  28,816  26,692 
Investment in bank-owned life insurance 102,182  101,491  100,807  93,192  92,592 
Goodwill 63,909  63,909  63,909  63,909  63,909 
Identifiable intangible assets, net 4,554  4,766  4,981  5,198  5,414 
Other assets 193,788  195,529  153,849  123,046  125,196 
Total assets
$6,660,051  $6,408,051  $5,982,891  $5,847,999  $5,851,127 
Liabilities:
Deposits:
Noninterest-bearing deposits
$858,953  $938,572  $888,981  $911,990  $945,229 
Interest-bearing deposits
4,160,009  4,131,285  4,117,648  4,215,960  4,034,822 
Total deposits
5,018,962  5,069,857  5,006,629  5,127,950  4,980,051 
Federal Home Loan Bank advances 980,000  700,000  328,000  55,000  145,000 
Junior subordinated debentures 22,681  22,681  22,681  22,681  22,681 
Operating lease liabilities 29,558  30,189  30,491  31,169  29,010 
Other liabilities 155,181  153,050  118,456  98,007  109,577 
Total liabilities
6,206,382  5,975,777  5,506,257  5,334,807  5,286,319 
Shareholders’ Equity:
Common stock
1,085  1,085  1,085  1,085  1,085 
Paid-in capital 127,056  127,055  126,079  127,355  126,511 
Retained earnings 492,043  485,163  475,889  465,295  458,310 
Accumulated other comprehensive (loss) income (157,800) (171,755) (118,041) (79,451) (19,981)
Treasury stock, at cost (8,715) (9,274) (8,378) (1,092) (1,117)
Total shareholders’ equity
453,669  432,274  476,634  513,192  564,808 
Total liabilities and shareholders’ equity
$6,660,051  $6,408,051  $5,982,891  $5,847,999  $5,851,127 


-7-


Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED 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,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Dec 31,
2022
Dec 31,
2021
Interest income:
Interest and fees on loans
$53,644  $45,125  $36,602  $33,930  $36,882  $169,301  $141,552 
Interest on mortgage loans held for sale
314  361  258  232  387  1,165  1,531 
Taxable interest on debt securities
6,618  6,061  4,918  4,230  3,929  21,827  14,295 
Dividends on Federal Home Loan Bank stock
330  88  63  67  98  548  436 
Other interest income
855  503  188  78  60  1,624  181 
Total interest and dividend income
61,761  52,138  42,029  38,537  41,356  194,465  157,995 
Interest expense:
Deposits
12,301  6,656  3,963  3,103  2,977  26,023  12,390 
Federal Home Loan Bank advances
7,822  3,234  413  244  547  11,713  3,800 
Junior subordinated debentures
296  206  138  99  92  739  370 
Total interest expense 20,419  10,096  4,514  3,446  3,616  38,475  16,560 
Net interest income 41,342  42,042  37,515  35,091  37,740  155,990  141,435 
Provision for credit losses 800  800  (3,000) 100  (2,822) (1,300) (4,822)
Net interest income after provision for credit losses 40,542  41,242  40,515  34,991  40,562  157,290  146,257 
Noninterest income:
Wealth management revenues
8,624  9,525  10,066  10,531  10,504  38,746  41,282 
Mortgage banking revenues
1,103  2,047  2,082  3,501  4,332  8,733  28,626 
Card interchange fees
1,242  1,287  1,303  1,164  1,282  4,996  4,996 
Service charges on deposit accounts
942  819  763  668  766  3,192  2,683 
Loan related derivative income
745  1,041  669  301  1,972  2,756  4,342 
Income from bank-owned life insurance
691  684  615  601  1,144  2,591  2,925 
Other income
441  400  354  393  307  1,588  2,540 
Total noninterest income
13,788  15,803  15,852  17,159  20,307  62,602  87,394 
Noninterest expense:
Salaries and employee benefits
20,812  21,609  20,381  21,002  21,524  83,804  87,295 
Outsourced services
3,568  3,552  3,375  3,242  3,585  13,737  13,296 
Net occupancy
2,418  2,234  2,174  2,300  2,145  9,126  8,449 
Equipment
1,002  939  938  918  959  3,797  3,905 
Legal, audit and professional fees
987  693  677  770  817  3,127  2,859 
FDIC deposit insurance costs
489  430  402  366  391  1,687  1,592 
Advertising and promotion
713  799  724  351  502  2,587  1,843 
Amortization of intangibles
212  215  216  217  216  860  890 
Debt prepayment penalties
—  —  —  —  2,700  —  6,930 
Other expenses
3,158  2,596  2,190  2,053  2,380  9,997  8,405 
Total noninterest expense
33,359  33,067  31,077  31,219  35,219  128,722  135,464 
Income before income taxes 20,971  23,978  25,290  20,931  25,650  91,170  98,187 
Income tax expense 4,398  5,310  5,333  4,448  5,462  19,489  21,317 
Net income
$16,573  $18,668  $19,957  $16,483  $20,188  $71,681  $76,870 
Net income available to common shareholders $16,535  $18,615  $19,900  $16,429  $20,128  $71,479  $76,648 
Weighted average common shares outstanding:
  Basic 17,180  17,174  17,303  17,331  17,328  17,246  17,310 
  Diluted 17,319  17,298  17,414  17,482  17,469  17,381  17,455 
Earnings per common share:
  Basic $0.96  $1.08  $1.15  $0.95  $1.16  $4.14  $4.43 
  Diluted $0.95  $1.08  $1.14  $0.94  $1.15  $4.11  $4.39 
Cash dividends declared per share $0.56  $0.54  $0.54  $0.54  $0.54  $2.18  $2.10 
-8-


Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Share and Equity Related Data:
Book value per share $26.40  $25.17  $27.73  $29.61  $32.59 
Tangible book value per share - Non-GAAP (1)
$22.42  $21.17  $23.72  $25.62  $28.59 
Market value per share $47.18  $46.48  $48.37  $52.50  $56.37 
Shares issued at end of period 17,363  17,363  17,363  17,363  17,363 
Shares outstanding at end of period 17,183  17,171  17,190  17,332  17,331 
Capital Ratios (2):
Tier 1 risk-based capital 11.69  % 11.97  % 12.78  % 13.32  % 13.24  %
Total risk-based capital 12.37  % 12.65  % 13.51  % 14.15  % 14.01  %
Tier 1 leverage ratio 8.65  % 8.99  % 9.42  % 9.46  % 9.36  %
Common equity tier 1 11.24  % 11.50  % 12.28  % 12.79  % 12.71  %
Balance Sheet Ratios:
Equity to assets 6.81  % 6.75  % 7.97  % 8.78  % 9.65  %
Tangible equity to tangible assets - Non-GAAP (1)
5.84  % 5.74  % 6.89  % 7.68  % 8.57  %
Loans to deposits (3)
101.2  % 95.4  % 89.2  % 83.1  % 85.8  %
For the Twelve Months Ended
For the Three Months Ended
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Dec 31,
2022
Dec 31,
2021
Performance Ratios (4):
Net interest margin (5)
2.65  % 2.82  % 2.71  % 2.57  % 2.71  % 2.69  % 2.59  %
Return on average assets (net income divided by average assets)
1.01  % 1.19  % 1.37  % 1.14  % 1.36  % 1.17  % 1.32  %
Return on average tangible assets - Non-GAAP (1)
1.03  % 1.20  % 1.39  % 1.15  % 1.38  % 1.19  % 1.33  %
Return on average equity (net income available for common shareholders divided by average equity)
14.96  % 15.16  % 16.11  % 12.04  % 14.34  % 14.49  % 14.03  %
Return on average tangible equity - Non-GAAP (1)
17.74  % 17.65  % 18.71  % 13.77  % 16.39  % 16.84  % 16.09  %
Efficiency ratio (6)
60.5  % 57.2  % 58.2  % 59.7  % 60.7  % 58.9  % 59.2  %
(1)See the section labeled “Supplemental Information - Calculation of Non-GAAP Financial Measures” at the end of this document.
(2)Estimated for December 31, 2022 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).

-9-


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,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Dec 31,
2022
Dec 31,
2021
Wealth Management Results
Wealth Management Revenues:
Asset-based revenues $8,448  $9,302  $9,641  $10,211  $10,417  $37,602  $40,215 
Transaction-based revenues 176  223  425  320  87  1,144  1,067 
Total wealth management revenues $8,624  $9,525  $10,066  $10,531  $10,504  $38,746  $41,282 
Assets Under Administration (AUA):
Balance at beginning of period $6,322,757  $6,650,097  $7,492,893  $7,784,211  $7,443,396  $7,784,211  $6,866,737 
Net investment appreciation (depreciation) & income 312,407  (239,762) (816,290) (388,733) 358,796  (1,132,378) 931,302 
Net client asset (outflows) inflows (673,174) (87,578) (26,506) 97,415  (17,981) (689,843) (13,828)
Balance at end of period $5,961,990  $6,322,757  $6,650,097  $7,492,893  $7,784,211  $5,961,990  $7,784,211 
Percentage of AUA that are managed assets
91% 91% 91% 92% 92% 91% 92%
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (1)
$992  $1,718  $1,917  $3,327  $5,695  $7,954  $33,752 
Changes in fair value, net (2)
(426) (226) (330) (242) (1,594) (1,224) (5,558)
Loan servicing fee income, net (3)
537  555  495  416  231  2,003  432 
Total mortgage banking revenues $1,103  $2,047  $2,082  $3,501  $4,332  $8,733  $28,626 
Residential Mortgage Loan Originations:
Originations for retention in portfolio (4)
$228,579  $225,132  $263,762  $164,401  $174,438  $881,874  $756,343 
Originations for sale to secondary market (5)
39,087  77,242  86,459  106,619  188,735  309,407  933,324 
Total mortgage loan originations $267,666  $302,374  $350,221  $271,020  $363,173  $1,191,281  $1,689,667 
Residential Mortgage Loans Sold:
Sold with servicing rights retained $27,085  $34,659  $23,478  $14,627  $21,180  $99,849  $591,550 
Sold with servicing rights released (5)
27,470  40,665  56,263  115,501  175,818  239,899  361,886 
Total mortgage loans sold $54,555  $75,324  $79,741  $130,128  $196,998  $339,748  $953,436 
(1)Includes gains on loan sales, commission income on loans originated for 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).

-10-


Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN COMPOSITION
(Unaudited; Dollars in thousands)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Loans:
Commercial real estate (1) $1,829,304  $1,762,687  $1,609,618  $1,628,620  $1,639,062 
Commercial & industrial 656,397  652,758  620,270  614,892  641,555 
Total commercial 2,485,701  2,415,445  2,229,888  2,243,512  2,280,617 
Residential real estate (2) 2,323,002  2,144,098  1,966,341  1,777,974  1,726,975 
Home equity 285,715  273,742  267,785  246,097  247,697 
Other 15,721  15,588  15,808  16,269  17,636 
Total consumer 301,436  289,330  283,593  262,366  265,333 
Total loans $5,110,139  $4,848,873  $4,479,822  $4,283,852  $4,272,925 
(1)Commercial real estate loans consist of commercial mortgages and 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, 2022 December 31, 2021
Count Balance % of Total Count Balance % of Total
Commercial Real Estate Portfolio Segmentation:
Multi-family dwelling 127  $469,233  26  % 127  $474,229  29  %
Retail 108  421,617  23  121  389,487  24 
Office 53  257,551  14  57  216,602  13 
Hospitality 33  214,829  12  31  184,990  11 
Industrial and warehouse 42  192,717  11  35  137,254 
Healthcare 17  136,225  13  128,189 
Commercial mixed use 21  54,976  20  38,978 
Other 34  82,156  36  69,333 
Commercial real estate loans
435  $1,829,304  100  % 440  $1,639,062  100  %
Commercial & Industrial Portfolio Segmentation:
Healthcare and social assistance 69  $193,052  29  % 101  $174,376  27  %
Owner occupied and other real estate 168  72,429  11  185  72,957  11 
Manufacturing 55  60,601  65  55,341 
Retail 50  56,012  79  47,290 
Transportation and warehousing
20  51,347  31  35,064 
Educational services 19  46,708  28  52,211 
Finance and insurance 55  28,313  59  31,279 
Entertainment and recreation
24  25,646  37  32,087 
Information
23,948  14  25,045 
Accommodation and food services 49  17,167  114  28,320 
Professional, scientific and technical
37  6,451  69  8,912 
Public administration
11  3,789  16  5,441 
Other
162  70,934  10  281  73,232  13 
Commercial & industrial loans
724  $656,397  100  % 1,079  $641,555  100  %

-11-


Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN AND DEPOSIT COMPOSITION
(Unaudited; Dollars in thousands)
December 31, 2022 December 31, 2021
Balance % of Total Balance % of Total
Commercial Real Estate Loans by Property Location:
Connecticut $691,780  38  % $643,182  39  %
Massachusetts 566,717  31  464,018  28 
Rhode Island 387,759  21  408,496  25 
Subtotal
1,646,256  90  1,515,696  92 
All other states 183,048  10  123,366 
Total commercial real estate loans
$1,829,304  100  % $1,639,062  100  %
Residential Real Estate Loans by Property Location:
Massachusetts
$1,698,240  73  % $1,207,789  70  %
Rhode Island
446,010  19  365,831  21 
Connecticut
153,323  132,430 
Subtotal
2,297,573  99  1,706,050  99 
All other states
25,429  20,925 
Total residential real estate loans
$2,323,002  100  % $1,726,975  100  %

Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Deposits:
Noninterest-bearing demand deposits $858,953  $938,572  $888,981  $911,990  $945,229 
Interest-bearing demand deposits (in-market) 302,044  273,231  258,451  248,914  251,032 
NOW accounts 871,875  869,984  887,678  893,603  867,138 
Money market accounts 1,255,805  1,146,826  1,139,676  1,295,339  1,072,864 
Savings accounts 576,250  600,568  572,251  566,461  555,177 
Time deposits (in-market) 795,838  797,505  800,898  809,858  773,383 
In-market deposits
4,660,765  4,626,686  4,547,935  4,726,165  4,464,823 
Wholesale brokered demand deposits 31,153  31,044  31,003  —  — 
Wholesale brokered time deposits 327,044  412,127  427,691  401,785  515,228 
Wholesale brokered deposits 358,197  443,171  458,694  401,785  515,228 
Total deposits
$5,018,962  $5,069,857  $5,006,629  $5,127,950  $4,980,051 
-12-


Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Asset Quality Ratios:
Nonperforming assets to total assets 0.19  % 0.19  % 0.21  % 0.22  % 0.24  %
Nonaccrual loans to total loans 0.25  % 0.25  % 0.28  % 0.29  % 0.33  %
Total past due loans to total loans 0.23  % 0.16  % 0.19  % 0.16  % 0.24  %
Allowance for credit losses on loans to nonaccrual loans 296.02  % 304.10  % 292.55  % 311.67  % 275.21  %
Allowance for credit losses on loans to total loans 0.74  % 0.76  % 0.81  % 0.92  % 0.91  %
Nonperforming Assets:
Commercial real estate $—  $—  $—  $—  $— 
Commercial & industrial —  —  —  —  — 
Total commercial —  —  —  —  — 
Residential real estate 11,894  11,700  11,815  11,916  13,576 
Home equity 952  422  599  673  627 
Other consumer —  —  —  —  — 
Total consumer 952  422  599  673  627 
Total nonaccrual loans 12,846  12,122  12,414  12,589  14,203 
Other real estate owned —  —  —  —  — 
Total nonperforming assets $12,846  $12,122  $12,414  $12,589  $14,203 
Past Due Loans (30 days or more past due):
Commercial real estate $1,187  $—  $—  $—  $— 
Commercial & industrial 265  108 
Total commercial 1,452  108 
Residential real estate 8,875  7,256  7,794  6,467  9,622 
Home equity 1,235  252  728  431  765 
Other consumer 16  17  28  30  21 
Total consumer 1,251  269  756  461  786 
Total past due loans $11,578  $7,529  $8,557  $7,036  $10,411 
Accruing loans 90 days or more past due $—  $—  $—  $—  $— 
Nonaccrual loans included in past due loans $7,196  $7,059  $6,817  $5,707  $9,359 
Troubled Debt Restructurings ("TDR"):
Accruing TDRs $3,519  $7,214  $9,607  $16,303  $16,328 
Nonaccrual TDRs 5,073  2,890  2,906  2,789  2,819 
Total TDRs $8,592  $10,104  $12,513  $19,092  $19,147 
-13-


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,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Dec 31,
2022
Dec 31,
2021
Nonaccrual Loan Activity:
Balance at beginning of period $12,122  $12,414  $12,589  $14,203  $10,976  $14,203  $13,197 
Additions to nonaccrual status 2,485  521  158  427  3,959  3,591  7,813 
Loans returned to accruing status —  (400) (236) (63) (339) (699) (1,216)
Loans charged-off (62) (63) (23) (36) (31) (184) (661)
Payments, payoffs and other changes (1,699) (350) (74) (1,942) (362) (4,065) (4,930)
Balance at end of period $12,846  $12,122  $12,414  $12,589  $14,203  $12,846  $14,203 
Allowance for Credit Losses on Loans:
Balance at beginning of period $36,863  $36,317  $39,236  $39,088  $41,711  $39,088  $44,106 
Provision for credit losses on loans (1)
900  600  (2,929) —  (2,650) (1,429) (4,601)
Charge-offs (62) (63) (23) (36) (33) (184) (663)
Recoveries 326  33  184  60  552  246 
Balance at end of period $38,027  $36,863  $36,317  $39,236  $39,088  $38,027  $39,088 
Allowance for Credit Losses on Unfunded Commitments:
Balance at beginning of period $2,390  $2,190  $2,261  $2,161  $2,333  $2,161  $2,382 
Provision for credit losses on unfunded commitments (1)
(100) 200  (71) 100  (172) 129  (221)
Balance at end of period (2)
$2,290  $2,390  $2,190  $2,261  $2,161  $2,290  $2,161 
(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,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Dec 31,
2022
Dec 31,
2021
Net Loan Charge-Offs (Recoveries):
Commercial real estate ($300) $—  $—  ($145) $—  ($445) $— 
Commercial & industrial 10  (11) (1) (35) 266 
Total commercial (290) (11) (146) (35) (438) 266 
Residential real estate —  —  —  (21) (4) (21) 18 
Home equity (8) —  (2) (2) (12) (12) 92 
Other consumer 34  45  21  24  103  41 
Total consumer 26  45  19  12  91  133 
Total ($264) $54  ($10) ($148) ($27) ($368) $417 
Net charge-offs (recoveries) to average loans - annualized (0.02  %) —  % —  % (0.01  %) —  % (0.01  %) 0.01  %

-14-


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, 2022 September 30, 2022 Change
Average Balance Interest Yield/
Rate
Average Balance Interest Yield/
Rate
Average Balance Interest Yield/
Rate
Assets:
Cash, federal funds sold and short-term investments
$94,196  $855  3.60  % $92,708  $503  2.15  % $1,488  $352  1.45  %
Mortgage loans held for sale 28,214  314  4.42  34,503  361  4.15  (6,289) (47) 0.27 
Taxable debt securities 1,165,276  6,618  2.25  1,150,674  6,061  2.09  14,602  557  0.16 
FHLB stock 35,485  330  3.69  25,377  88  1.38  10,108  242  2.31 
Commercial real estate 1,771,999  22,300  4.99  1,692,374  17,974  4.21  79,625  4,326  0.78 
Commercial & industrial 645,882  8,643  5.31  630,360  7,114  4.48  15,522  1,529  0.83 
Total commercial
2,417,881  30,943  5.08  2,322,734  25,088  4.29  95,147  5,855  0.79 
Residential real estate
2,214,207  19,490  3.49  2,045,833  17,379  3.37  168,374  2,111  0.12 
Home equity 280,682  3,386  4.79  269,654  2,804  4.13  11,028  582  0.66 
Other 15,218  174  4.54  15,299  171  4.43  (81) 0.11 
Total consumer 295,900  3,560  4.77  284,953  2,975  4.14  10,947  585  0.63 
Total loans
4,927,988  53,993  4.35  4,653,520  45,442  3.87  274,468  8,551  0.48 
Total interest-earning assets
6,251,159  62,110  3.94  5,956,782  52,455  3.49  294,377  9,655  0.45 
Noninterest-earning assets 229,713  259,347  (29,634)
Total assets
$6,480,872  $6,216,129  $264,743 
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits (in-market) $287,311  $1,777  2.45  % $267,670  $822  1.22  % $19,641  $955  1.23  %
NOW accounts 854,055  370  0.17  871,038  212  0.10  (16,983) 158  0.07 
Money market accounts 1,213,890  4,970  1.62  1,137,875  2,231  0.78  76,015  2,739  0.84 
Savings accounts 586,868  227  0.15  582,513  100  0.07  4,355  127  0.08 
Time deposits (in-market) 798,482  2,633  1.31  797,199  1,983  0.99  1,283  650  0.32 
Interest-bearing in-market deposits 3,740,606  9,977  1.06  3,656,295  5,348  0.58  84,311  4,629  0.48 
Wholesale brokered demand deposits 31,082  282  3.60  31,014  166  2.12  68  116  1.48 
Wholesale brokered time deposits 355,618  2,042  2.28  381,984  1,142  1.19  (26,366) 900  1.09 
Wholesale brokered deposits 386,700  2,324  2.38  412,998  1,308  1.26  (26,298) 1,016  1.12 
Total interest-bearing deposits 4,127,306  12,301  1.18  4,069,293  6,656  0.65  58,013  5,645  0.53 
FHLB advances 796,087  7,822  3.90  549,729  3,234  2.33  246,358  4,588  1.57 
Junior subordinated debentures 22,681  296  5.18  22,681  206  3.60  —  90  1.58 
Total interest-bearing liabilities 4,946,074  20,419  1.64  4,641,703  10,096  0.86  304,371  10,323  0.78 
Noninterest-bearing demand deposits 917,460  944,153  (26,693)
Other liabilities 178,991  143,043  35,948 
Shareholders' equity 438,347  487,230  (48,883)
Total liabilities and shareholders' equity $6,480,872  $6,216,129  $264,743 
Net interest income (FTE) $41,691  $42,359  ($668)
Interest rate spread 2.30  % 2.63  % (0.33  %)
Net interest margin 2.65  % 2.82  % (0.17  %)

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Three Months Ended Dec 31, 2022 Sep 30, 2022 Change
Commercial loans $349  $317  $32 
Total $349  $317  $32 
-15-


Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
For the Twelve Months Ended December 31, 2022 December 31, 2021 Change
Average Balance Interest Yield/
Rate
Average Balance Interest Yield/
 Rate
Average Balance Interest Yield/
 Rate
Assets:
Cash, federal funds sold and short-term investments
$119,932  $1,624  1.35  % $167,898  $181  0.11  % ($47,966) $1,443  1.24  %
Mortgage loans for sale 29,539  1,165  3.94  52,580  1,531  2.91  (23,041) (366) 1.03 
Taxable debt securities 1,121,413  21,827  1.95  1,013,445  14,295  1.41  107,968  7,532  0.54 
FHLB stock 20,721  548  2.64  21,422  436  2.04  (701) 112  0.60 
Commercial real estate 1,679,300  65,660  3.91  1,643,107  49,551  3.02  36,193  16,109  0.89 
Commercial & industrial 632,938  28,099  4.44  752,934  30,824  4.09  (119,996) (2,725) 0.35 
Total commercial
2,312,238  93,759  4.05  2,396,041  80,375  3.35  (83,803) 13,384  0.70 
Residential real estate
1,960,629  65,866  3.36  1,571,459  52,884  3.37  389,170  12,982  (0.01)
Home equity 263,578  10,139  3.85  254,289  8,212  3.23  9,289  1,927  0.62 
Other 15,799  724  4.58  19,765  966  4.89  (3,966) (242) (0.31)
Total consumer 279,377  10,863  3.89  274,054  9,178  3.35  5,323  1,685  0.54 
Total loans 4,552,244  170,488  3.75  4,241,554  142,437  3.36  310,690  28,051  0.39 
Total interest-earning assets
5,843,849  195,652  3.35  5,496,899  158,880  2.89  346,950  36,772  0.46 
Noninterest-earning assets 258,906  341,067  (82,161)
Total assets
$6,102,755  $5,837,966  $264,789 
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits (in-market) $263,154  $2,891  1.10  % $202,929  $259  0.13  % $60,225  $2,632  0.97  %
NOW accounts 864,084  862  0.10  765,584  491  0.06  98,500  371  0.04 
Money market accounts 1,198,714  8,954  0.75  984,278  2,413  0.25  214,436  6,541  0.50 
Savings accounts 574,349  473  0.08  521,143  282  0.05  53,206  191  0.03 
Time deposits (in-market) 799,645  8,630  1.08  702,303  7,749  1.10  97,342  881  (0.02)
Interest-bearing in-market deposits 3,699,946  21,810  0.59  3,176,237  11,194  0.35  523,709  10,616  0.24 
Wholesale brokered demand deposits 20,696  494  2.39  —  —  —  20,696  494  2.39 
Wholesale brokered time deposits 386,170  3,719  0.96  644,151  1,196  0.19  (257,981) 2,523  0.77 
Wholesale brokered deposits 406,866  4,213  1.04  644,151  1,196  0.19  (237,285) 3,017  0.85 
Total interest-bearing deposits 4,106,812  26,023  0.63  3,820,388  12,390  0.32  286,424  13,633  0.31 
FHLB advances 414,263  11,713  2.83  370,881  3,800  1.02  43,382  7,913  1.81 
Junior subordinated debentures 22,681  739  3.26  22,681  370  1.63  —  369  1.63 
Total interest-bearing liabilities 4,543,756  38,475  0.85  4,213,950  16,560  0.39  329,806  21,915  0.46 
Noninterest-bearing demand deposits 923,423  934,626  (11,203)
Other liabilities 142,324  143,197  (873)
Shareholders' equity 493,252  546,193  (52,941)
Total liabilities and shareholders' equity $6,102,755  $5,837,966  $264,789 
Net interest income (FTE) $157,177  $142,320  $14,857 
Interest rate spread 2.50  % 2.50  % —  %
Net interest margin 2.69  % 2.59  % 0.10  %

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Twelve Months Ended Dec 31, 2022 Dec 31, 2021 Change
Commercial loans $1,187  $885  $302 
Total $1,187  $885  $302 
-16-


Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures
(Unaudited; Dollars in thousands, except per share amounts)
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Tangible Book Value per Share:
Total shareholders' equity, as reported $453,669  $432,274  $476,634  $513,192  $564,808 
Less:
Goodwill
63,909  63,909  63,909  63,909  63,909 
Identifiable intangible assets, net
4,554  4,766  4,981  5,198  5,414 
Total tangible shareholders' equity $385,206  $363,599  $407,744  $444,085  $495,485 
Shares outstanding, as reported 17,183  17,171  17,190  17,332  17,331 
Book value per share - GAAP $26.40  $25.17  $27.73  $29.61  $32.59 
Tangible book value per share - Non-GAAP $22.42  $21.18  $23.72  $25.62  $28.59 
Tangible Equity to Tangible Assets:
Total tangible shareholders' equity $385,206  $363,599  $407,744  $444,085  $495,485 
Total assets, as reported $6,660,051  $6,408,051  $5,982,891  $5,847,999  $5,851,127 
Less:
Goodwill
63,909  63,909  63,909  63,909  63,909 
Identifiable intangible assets, net
4,554  4,766  4,981  5,198  5,414 
Total tangible assets $6,591,588  $6,339,376  $5,914,001  $5,778,892  $5,781,804 
Equity to assets - GAAP 6.81  % 6.75  % 7.97  % 8.78  % 9.65  %
Tangible equity to tangible assets - Non-GAAP 5.84  % 5.74  % 6.89  % 7.68  % 8.57  %
For the Three Months Ended For the Twelve Months Ended
Dec 31,
2022
Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Dec 31,
2021
Dec 31,
2022
Dec 31,
2021
Return on Average Tangible Assets:
Net income, as reported $16,573  $18,668  $19,957  $16,483  $20,188  $71,681  $76,870 
Total average assets, as reported $6,480,872  $6,216,129  $5,841,332  $5,864,668  $5,884,581  $6,102,755  $5,837,966 
Less average balances of:
Goodwill
63,909  63,909  63,909  63,909  63,909  63,909  63,909 
Identifiable intangible assets, net
4,657  4,871  5,086  5,303  5,526  4,977  5,852 
Total average tangible assets $6,412,306  $6,147,349  $5,772,337  $5,795,456  $5,815,146  $6,033,869  $5,768,205 
Return on average assets - GAAP 1.01  % 1.19  % 1.37  % 1.14  % 1.36  % 1.17  % 1.32  %
Return on average tangible assets - Non-GAAP
1.03  % 1.20  % 1.39  % 1.15  % 1.38  % 1.19  % 1.33  %
Return on Average Tangible Equity:
Net income available to common shareholders, as reported
$16,535  $18,615  $19,900  $16,429  $20,128  $71,479  $76,648 
Total average equity, as reported $438,347  $487,230  $495,573  $553,185  $556,765  $493,252  $546,193 
Less average balances of:
Goodwill
63,909  63,909  63,909  63,909  63,909  63,909  63,909 
Identifiable intangible assets, net
4,657  4,871  5,086  5,303  5,526  4,977  5,852 
Total average tangible equity $369,781  $418,450  $426,578  $483,973  $487,330  $424,366  $476,432 
Return on average equity - GAAP 14.96  % 15.16  % 16.11  % 12.04  % 14.34  % 14.49  % 14.03  %
Return on average tangible equity - Non-GAAP
17.74  % 17.65  % 18.71  % 13.77  % 16.39  % 16.84  % 16.09  %
-17-