WESTERLY – Washington Trust Bancorp Inc. (Nasdaq: WASH), parent of The Washington Trust Co., is paring its unofficial fourth-quarter and full-year results for 2008. The bank cited a ratings downgrade that hurt the value of certain securities.
In a filing today with the U.S. Securities and Exchange Commission, Washington Trust said it is taking a fourth-quarter charge of $595,000 – $387,000, or 2 cents per diluted share, after taxes – reflecting that other-than-temporary impairment. The charge is “a result of a rating agency downgrade to below ‘investment grade’ of one of its perpetual preferred investment securities,” the bank said.
“Because this investment security was carried at fair value at Dec. 31,” Washington Trust added, “the loss on this security, net of tax, was previously reported in unrealized losses on securities available for sale within accumulated other comprehensive loss, a component of total shareholders’ equity.”
As a result of the new charge, the bank has revised the fourth-quarter and annual reports it had released on Jan. 28 (READ MORE) but had not yet filed with the SEC.
The revisions will pare Washington Trust’s full-year profit to $22.2 million – a 5 percent decline from 2007 – from the $22.6 million the bank reported last month. Earnings per fully diluted common share will fall to $1.57 from the previously calculated $1.59.
For the quarter ended Dec. 31, the bank’s profit will fall to $4.2 million – a 27.5 percent decline from 2007 fourth quarter’s $5.8 million – from the $4.6 million of Washington Trust’s initial report. Earnings per fully diluted share will fall to 27 cents from the previously calculated 29 cents per share.
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Washington Trust Bancorp Inc. (Nasdaq: WASH) is the parent of The Washington Trust Co., a Rhode Island-chartered bank founded in 1800 that has offices in Rhode Island, Massachusetts and southeastern Connecticut. Additional information is available at www.WashTrust.com.
