Washington Trust Bancorp, Inc. (NASDAQ Global Select®: WASH), announced today that its wholly-owned subsidiary, The Washington Trust Company, has expanded its long-term relationship with Vantiv, Inc. (NYSE: VNTV), to now include Merchant Services.
"Vantiv is one of the premier payment processing companies in the nation and we believe our merchant services customers will benefit from this relationship," stated Joseph J. MarcAurele, Washington Trust Chairman and Chief Executive Officer. "Vantiv is committed to providing our merchant customers with a high level of customer service and innovative payment solutions."
"We are pleased to expand our relationship with Washington Trust, now adding merchant services to the existing suite of issuer services we provide them," said Stephanie Ferris, Vantiv Senior Vice President and General Manager of Financial Institution Services. "As Washington Trust's payments partner, we look forward to providing their merchants a full suite of the latest payments products and high levels of customer care."
Under the agreement, Vantiv has purchased Washington Trust's Merchant Services Portfolio. Washington Trust realized a gain of approximately $6.3 million (after-tax $4.0 million, or $.24 per share) upon the March 1, 2014 closing of the transaction. In addition, Washington Trust expects to record divestiture related costs of approximately $359 thousand ($230 thousand after-tax, or $.01 per share) in the first quarter of 2014. Washington Trust will also have the opportunity to earn additional referral revenues during the ten-year period following the transaction.