NEW: Washington Trust Announces Record Second Quarter Earnings

NEW: Washington Trust Announces Record Second Quarter Earnings

Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2012 net income of $8.7 million, or 53 cents per diluted share.  On a diluted earnings per share basis, second quarter 2012 results were up by 2 cents, or 4%, from first quarter 2012 and by 7 cents, or 15%, from second quarter 2011.  The returns on average equity and average assets for the second quarter of 2012 were 11.98% and 1.16%, respectively, compared to 11.85% and 1.11%, respectively, for the first quarter of 2012.

“Washington Trust posted another record quarter with good performances along key business lines,” stated Joseph J. MarcAurele, Washington Trust Chairman, President and CEO. “We’re particularly pleased with our lending results in this challenging economy, as both our mortgage and commercial banking areas showed solid growth, while asset quality remained strong.”

Selected Q2-2012 Financial Highlights:

•    Net interest margin increased, benefiting from improvements in the mix of interest-earning assets and reductions to funding costs.

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•    Mortgage banking revenues were consistent with the prior quarter and reflective of continued strong mortgage origination volume.

•    Asset quality indicators showed continued improvement.

•    The loan loss provision charged to earnings was the lowest quarterly provision since the first quarter of 2008.

•    Total loans were $2.2 billion at Q2-2012, up from Q1-2012, led by solid growth in the commercial loan portfolio. 

•    Total deposits were $2.1 billion at Q2- 2012, down slightly from Q1-2012.