Good morning and welcome to the Washington Trust Bancorp International’s Conference Call. My name is Betty, I will your operator today. (Operator Instructions). And now I will turn the call over to Elizabeth Eckel, Senior Vice President, Marketing and Investor Relations. Ms. Eckel please go ahead.

Thank you Betty. Good morning and welcome to Washington Trust Bancorp Inc’s second quarter 2014 conference call. Washington Trust is publically traded on the NASDAQ/RMAX market under the symbol WASH. This morning’s conference call is being recorded and webcast live. A replay of the call will be available shortly after the conclusion of the call through the corporation’s website at washtrustbankcorp.com under the subhead presentation. As a reminder the information we provide during today’s call is accurate only as of this date. And you should not rely in today’s statements after the conclusion of the call. Washington Trust Executives Joseph J. MarcAurele, Chairman and Chief Executive Officer; and, David V. Devault, Vice Chairman, Secretary and Chief Financial Officer are hosting today’s call and we will answer questions at the end of the presentation. And now I’m pleased to introduce Washington Trust’s Chairman and CEO, Joseph MarcAurele.

Thank you Beth. Good morning everyone and thank you for joining us today for review of our second quarter results. The positive momentum continued in the second quarter as we once again posted solid earnings as well as good growth across our business lines. Net income for the second quarter totaled 9.8 million or $0.58 per diluted share, earnings are up from the first quarter of this year and from the same quarter a year ago. Washington Trust’s profitability, asset quality and capitalization metrics will remain strong. Return on average equity was 11.52% while return on average assets increased to 1.22%. Our continued success is attributable to our commitment to a corporate strategy focused on market expansion, corporate business line growth and maximization of what we consider to be our unique business model namely our wealth management division. I’m pleased to report that our wealth management division achieved a major milestone during the quarter reaching 5 billion in assets under management for the first time in our company’s history. This is a high priority business line for us because it provides a consistent stream of non-interest income. In fact wealth management revenues represented 23% of the company’s total second quarter revenues while we benefited from continued market appreciation, we also had a good new business activity in this quarter. After a slow start earlier in the year mortgage banking activity increased in the second quarter and we posted solid loan sale gains. Expansion has been a critical part of our mortgage banking growth in the past five years. In August 2009 we opened our first mortgage office outside of our home state of Rhode Island, a production office in Sharon, Massachusetts. Since then we have hired teams of loan officers and opened four additional mortgage offices in Fairfield County in…

Thank you Joe. Good morning everyone and thanks for joining us in our call today. I will review our second quarter 2014 operating results and financial position as described in our press release yesterday afternoon. Net income was 9.8 million or $0.58 per diluted share in the second quarter of 2014 that compared to net income of $9.3 million in the first quarter or $0.55 per share. Second quarter 2014 net interest income amounted to $24.5 million up 3% on the linked quarter basis. The net interest margin for the second quarter was 3.35% up one basis point from the first quarter. The growth in net interest income was achieved due to several factors including a 1.2% linked quarter increase in average interest earning assets. This reflects loan growth net of reductions in the securities portfolio. We also benefited from a decline in funding costs resulting from the prepayment of higher rate federal home loan bank advances in March of this year. This was the primary reason for an eight basis point decline in the cost of interest bearing funds from the first quarter to the second quarter. On the balance sheet total loans rose by $102.5 million or 4% in the quarter. Commercial loans increased by nearly $29 million or 2.2%. The largest growth occurred in the C&I portfolio which rose by $31 million. Residential and consumer loans were up by nearly $74 million on a combined basis or about 6.5% with increases in first mortgages and to a lesser extent home equity lines and loans. The total loan portfolio stands at $2.58 billion at the end of June. The investment securities portfolio amounted to 355 million at the end of the second quarter down about $34.5 million in the quarter due to the maturity of government agencies securities,…

Thank you David. Washington Trust had another good quarter and while it's hard to believe we are midway through another year, we are confident this momentum will continue through year-end. We’re committed to the corporate strategy that has led us to our performance thus far and remain dedicated to enhancing the value of our company for our shareholders. Thank you very much for your time this morning. David and I will be happy to answer any questions you may have about the quarter. Thank you.

(Operator Instructions). And our first question comes from Mark Fitzgibbon of Sandler O'Neill. Please go ahead, sir. Mark Fitzgibbon – Sandler O'Neill: Dave, last quarter you had said on the conference call that you thought the outlook for the net interest margin was likely stable in the near-term. Do you still hold that view?

Let’s define stable. I guess we see some pressure on margin in the next couple of quarters where it could drift downward somewhat. So, look at the boast obviously in the second quarter that’s built in now from the significant funding mix change in the first quarter. So, as things play out in what continues to be relatively low interest rate environment, we believe it will still be continued pressure on margin not dramatic but some downward pressure. Mark Fitzgibbon – Sandler O'Neill: And then secondly I think you had about 6% C&I growth this quarter. I’m curious was that a function of new loans or was it a function of line utilization increasing?

I would say it's primarily new loans. I don’t know David, if you have some color around line usage versus new loans.

Line increases are part of it but much more than half of the increase is in new loans. Mark Fitzgibbon – Sandler O'Neill: Okay. And then of the $72 million of net client cash inflows you had in the asset management business, were there any large pieces in there or was it sort of spread out across a lot of different new accounts?

There is a mix in there mark, some of it is routine business, some of it is custody accounts which have somewhat lower fee schedule associated with them. So it's a mix. We were encouraged to see the increase in absolute dollars. Mark Fitzgibbon – Sandler O'Neill: Okay. And then Joe I think you have said that the loan pipelines were healthy, I wondered if you could just share with us the size of those pipelines currently?

Sure. The current pipeline is about a 130 million Mark which is up from the beginning of the year and up from the end of the first quarter. So I think it's and that quite frankly is almost all in C&I. So it's a bigger C&I pipeline than it is a CRE pipeline today which we are very happy about. Mark Fitzgibbon – Sandler O'Neill: And actually I had a question on CRE as well, with sort of all the announcements that you’ve all made with respect to new CRE business I was surprised to see the commercial real estate actually declining about 2% linked quarter. I guess I was curious, was that a function of some big pay-offs or just the--

I mean Mark really what has happened is the insurance and the conduit markets have picked up markably in really since the beginning of the year. So what’s happened to us is even sometimes before maturity some of our more high quality borrowers in commercial real estate have opted to place some of these loans more long term with those entities and there also have been some sales of property. It's really a function of both of those things. It's really not lost customers to direct bank competition.

(Operator Instructions). Our next question comes from the line of Travis Lan of KBW. Please go ahead. Travis Lan – KBW: Dave, do you have a sense for what percent of the quarter’s more residential mortgage production was fixed rate versus variable?

Around 40% fixed and the rest variable. Travis Lan – KBW: In the variable that you do, is that primarily 51 or is there any type of change in customer preference there for an initial fixed period?

We have seen a preference for an inflection point at around a 71 mark for ARMs [ph]. Travis Lan – KBW: And obviously you’ve put up really strong loan growth in two of the last three quarters. I just wonder what are your own expectations for the franchises growth capabilities going forward versus kind of the minimal economic support that you guys may get in your markets?

Well we think that our opportunity in both commercial and in residential Travis is really more directed at really the markets adjacent to us in Connecticut and Massachusetts where we have had good success. So I think we’re still looking at certainly mid and maybe somewhat higher single digit total loan growth. Travis Lan – KBW: And then Joe in response to one of Mark’s questions you had said that the insurance companies and conduits are kind of reengaged on the (indiscernible) side but are they extremely competitive on rate and kind of -- how are you seeing your own --

It's really the longer term rates Travis, it's making really -- taking more duration risk than we’re comfortable with but obviously that in today’s rate environment is very attractive to customers.

And our next question comes from Taylor Brodarick of Guggenheim Securities. Please go ahead, sir. Taylor Brodarick – Guggenheim Securities: Question on the just comparing first quarter, obviously really strong loan growth this quarter. Joe is there a sense from first quarter how much of that is impacted by either weather or maybe decrease business activity in the first quarter or really just kind of natural momentum investment --

Well I do think weather affected our residential mortgage business. I don’t know if it had affected the C&I business or the CRE business as much really Taylor. We were more affected in the first quarter from a commercial growth perspective by the fact that we work through a very big pipeline in the fourth quarter of last year and in fact really needed to reload and we were also obviously affected by the aforementioned payouts that we had either through conduits or insurance providers. Taylor Brodarick – Guggenheim Securities: And obviously looking at that loan growth and your loan to deposit ratio, how do you think of I assume it's not as simple as we’re at a 100% loan to deposit, we need to sell-off this percentage of loans but how do you think about that for (technical difficulty) like loan sales going forward.

Well I would tell you that one of the things that we’re usually focused on right now and have added some capability to particularly our cash management business and obviously the opening of the new branch in Johnston. Deposit growth and at least some reasonable momentum in that is a very, very important to us and one of the reasons why we’re encouraged by the growth in the C&I pipeline is that obviously more deposits come with that. So, that’s obviously on our radar screen and something that we need to think about. Taylor Brodarick – Guggenheim Securities: And then I guess really last one for me, I think you hit on my margin questions earlier would be -- it looks like about 50 million or so of excess capital, is that about right and is that something that you’re comfortable just holding for whatever opportunities present themselves or any other things we need to think about in the capital management’s front?

The capital levels are certainly comfortable [ph] for us. They certainly support continued growth in the loan portfolio including higher risk based assets in the commercial portfolio a greater concentration there. It obviously also gives us more flexibility to do whatever we need to do with the dividend to keep that healthy and continue to payout a good portion of our earnings.

(Operator Instructions). And as it appears that there are no more questions this will conclude our question and answer session. I would now like to turn the conference back over to Joseph MarcAurele for any closing remarks.

Thank you very much. Again we appreciate all of your interest and we look forward to producing the same or superior results for this in the next quarter and for the remainder of the year. So thank you very much and we will be in touch.