• Washington Trust Bancorp, Inc.
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  • Washington Trust Third Quarter Earnings Up 13%; Strong Loan and Deposit Growth
    Company Release - 10/21/2004 12:08

    WESTERLY, R.I.--(BUSINESS WIRE)--Oct. 21, 2004--Washington Trust Bancorp, Inc. (Nasdaq National Market; symbol: WASH), parent company of The Washington Trust Company, today announced net income of $5.3 million for the third quarter ended September 30, 2004, an increase of 13 percent from the $4.7 million reported for the third quarter of 2003. On a diluted earnings per share basis, the Corporation earned 39 cents for the third quarter of 2004, an 11 percent increase from the 35 cents earned for the same quarter a year ago. The returns on average assets and average equity for the three months ended September 30, 2004 were 0.96% and 14.70%, respectively, compared to 1.02% and 14.30%, respectively, for the three months ended September 30, 2003.

    "We had an outstanding quarter with earnings up 13 percent," said John C. Warren, Chairman and Chief Executive Officer of Washington Trust. "We've had excellent growth throughout the company; total loans are up 25 percent since December 31, 2003, while total deposits have risen by 22 percent since year-end. Trust and investment management revenues also showed significant gains, up 20 percent in the nine months ended 2004, compared to the same period in 2003."

    Net income for the nine months ended September 30, 2004 amounted to $15.3 million, an increase of 9 percent from the $14.1 million reported for the same period a year ago. On a diluted earnings per share basis, the Corporation earned $1.13 for the nine months ended September 30, 2004, an increase of 8 percent from $1.05 earned for the same period a year ago. The returns on average assets and average equity for the nine months ended September 30, 2004 were 0.97% and 14.35%, respectively, compared to 1.03% and 14.14%, respectively, for the nine months ended September 30, 2003.

    Balance sheet growth has been strong during 2004. Total assets amounted to $2.280 billion at September 30, 2004, an increase of 16 percent from December 31, 2003. Total loans amounted to $1.197 billion at September 30, 2004, up 25 percent since December 31, 2003. Commercial and commercial real estate loans amounted to $482.4 million at September 30, 2004, up $73.9 million, or 18 percent since December 31, 2003. Growth in consumer loans also continued increasing 34 percent to $217.2 million for the nine months ended September 30, 2004. Residential real estate loans grew to $497.9 million at September 30, 2004, an increase of $108.0 million or 28 percent from December 31, 2003, including an increase of $64.4 million in residential mortgages purchased from other financial institutions. At September 30, 2004, total securities amounted to $899.7 million, an increase of $60.3 million from the balance at December 31, 2003.

    Total deposits amounted to $1.469 billion at September 30, 2004 rising 22 percent since December 31, 2003. Savings deposits, including money market deposits, amounted to $640.3 million, up $146.4 million, or 30 percent, for the nine months ended September 30, 2004. Time deposits increased $94.9 million to $613.0 million, or 18 percent, from the December 31, 2003 balance, primarily due to increases in consumer certificates of deposit and brokered certificates of deposit. Demand deposits totaled $215.7 million at September 30, 2004, up 11 percent over the December 31, 2003 level. FHLB advances totaled $639.8 million at September 30, 2004, resulting in a $32.7 million increase from December 31, 2003 balance.

    Net interest income for the third quarter of 2004 amounted to $13.9 million, an increase of 18 percent from the $11.7 million amount reported for the same quarter a year ago. The net interest margin for the third quarter of 2004 was 2.69%, down 3 basis points from 2.72% reported in the second quarter of 2004 and down 6 basis points from 2.75% reported in the third quarter of 2003. The decrease in the net interest margin from the second quarter of 2004 is largely attributable to increased funding costs for deposits and borrowed funds, partially offset by higher yields on investment securities and loans. For the nine months ended September 30, 2004, net interest income amounted to $40.1 million, an increase of 11 percent from the amount reported for the corresponding 2003 period. The net interest margin for the nine months ended September 30, 2004 amounted to 2.76%, down 13 basis points from the 2.89% reported for the same period a year ago.

    Noninterest income (excluding net realized gains and losses on securities) totaled $7.0 million for the third quarter of 2004, compared to $7.4 million for the same quarter a year ago. For the nine months ended September 30, 2004, noninterest income amounted to $20.1 million, down $135 thousand, or 1 percent, from the comparable 2003 amount. Trust and investment management revenues increased $1.6 million, or 20 percent, in the nine months ended September 30, 2004 compared to the same period in 2003. Trust assets under administration amounted to $1.837 billion at September 30, 2004, compared to $1.742 billion at December 31, 2003 and $1.618 billion at September 30, 2003. Net gains on loan sales for the nine months ended September 30, 2004 amounted to $1.3 million, down from $4.1 million for the same period in 2003. Total third quarter 2004 net gains on loan sales were $348 thousand, down from $1.4 million for the same quarter a year ago. Loan sale gains have declined due to a drop off in fixed rate mortgage origination and sales activity. Also included in loan sale gains are gains resulting from the sale of the guaranteed portion of SBA loans. Total of such gains for the nine months ended 2004 were $575 thousand, up from $260 thousand for the same period in 2003.

    During the quarter ended September 30, 2004 the Corporation recognized net realized gains on securities of $101 thousand, which represents the disposal of certain equity securities for portfolio restructuring purposes. For the nine months ended September 30, 2004, the Corporation recognized net realized losses on securities amounting to $139 thousand. For the nine months ended September 30, 2003, net realized gains on securities totaled $630 thousand, including approximately $400 thousand in gains resulting from the Corporation's contribution of appreciated equity securities to the Corporation's charitable foundation. The cost of this 2003 contribution amounted to approximately $433 thousand and was included in other noninterest expense for the nine months ended September 30, 2003. The Corporation expects to make an annual contribution to its charitable foundation in the fourth quarter of 2004.

    Noninterest expenses totaled $13.1 million for the third quarter of 2004, an increase of 7 percent from the same period a year ago. Exclusive of the pre-tax debt prepayment penalty charge of $941 thousand in 2003, noninterest expenses for the nine months ended September 30, 2004 increased 6 percent to $37.3 million, with the largest increase in personnel related costs. In addition, included in noninterest expenses for the nine months ended September 30, 2004, were costs associated with the conversion of certain technology systems amounting to $318 thousand.

    Nonaccrual loans as a percentage of total loans at September 30, 2004 were .43%, up from .29% at December 31, 2003. Nonperforming assets (nonaccrual loans and property acquired through foreclosure) amounted to $5.2 million, or .23% of total assets, at September 30, 2004, up from $2.7 million, or .14%, at December 31, 2003. The increase was largely due to a single $2.1 million commercial lending relationship classified as nonaccrual during the second quarter of 2004. The Corporation continued to benefit from favorable loan loss experience during the nine months ended September 30, 2004 as indicated by a $353 thousand excess of loan loss recoveries over charge-offs. For the nine months ended September 30, 2003, charge-offs, net of recoveries, amounted to $34 thousand.

    Total shareholders' equity amounted to $148.4 million at September 30, 2004, compared to $138.1 million at December 31, 2003. Book value per share as of September 30, 2004 and December 31, 2003 amounted to $11.20 and $10.46, respectively.

    Washington Trust Chairman and Chief Executive Officer, John C. Warren, and David V. Devault, Executive Vice President, Treasurer, and Chief Financial Officer, will host a conference call on Thursday, October 21, at 4:30 p.m. (Eastern Daylight Time) to discuss the Corporation's third quarter results. Access to the call is available in a listen-only mode on Washington Trust's web site, http://investorrelations.washtrust.com. A replay of the call will be posted in this same section of the web site shortly after the conclusion of the call.

    Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a Rhode Island state-chartered bank founded in 1800. The Bank offers a full range of financial services, including trust and investment management, through its offices in Rhode Island and southeastern Connecticut. Washington Trust Bancorp, Inc.'s common stock trades on The Nasdaq Stock Market(R) under the symbol WASH. Investor information is available on the Corporation's web site: www.washtrust.com.

    Note: This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Corporation's management uses these non-GAAP measures in its analysis of the Corporation's performance. These measures adjust GAAP performance measures to exclude the effect of significant gains or losses that are unusual in nature such as debt prepayment penalty charges. Because these items and their impact on the Corporation's performance are difficult to predict, management believes that presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Corporation's core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other Corporations. A quantitative reconciliation of the differences between the non-GAAP financial information discussed herein and the most directly comparable financial information calculated and presented in accordance with GAAP is contained in the Financial Summary statements attached to this press release.

    This report contains certain statements that may be considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Corporation's actual results, performance or achievements could differ materially from those projected in the forward-looking statements as a result, among other factors, of changes in general national or regional economic conditions, changes in interest rates, reductions in the market value of trust and investment assets under management, reductions in loan demand, reductions in deposit levels necessitating increased borrowing to fund loans and investments, changes in loan default and charge-off rates, changes in the size and nature of the Corporation's competition, changes in legislation or regulation and accounting principles, policies and guidelines and changes in the assumptions used in making such forward-looking statements.

    Washington Trust Bancorp, Inc. and Subsidiary
                               FINANCIAL SUMMARY
    
                                                 THREE MONTHS ENDED
                                          --------------------------------
    (Dollars and shares in thousands,       SEP. 30,   SEP. 30,   JUN. 30,
     except per share amounts)                 2004       2003       2004
                                          ---------- ---------- ----------
    
    OPERATING RESULTS
    ------------------
    Net interest income                     $13,882    $11,727    $13,092
    Provision for loan losses                   120        100        120
    Net realized gains (losses) on
     securities                                 101          -       (240)
    Other noninterest income                  6,966      7,447      7,164
    Noninterest expenses                     13,054     12,190     12,545
    Income tax expense                        2,442      2,144      2,308
    Net income                                5,333      4,740      5,043
    
    PER SHARE
    ---------
    Basic earnings                            $0.40      $0.36      $0.38
    Diluted earnings                          $0.39      $0.35      $0.37
    Dividends declared                        $0.17      $0.16      $0.17
    
    SHARES OUTSTANDING
    -------------------
    Weighted Average:      Basic           13,235.7   13,133.8   13,216.1
                           Diluted         13,514.0   13,486.8   13,517.0
    
    AVERAGE BALANCE SHEET
    -------------------------------------
    Federal funds sold and other short-
     term investments                       $16,206    $18,451    $11,072
    Taxable debt securities                 855,908    787,056    829,306
    Nontaxable debt securities               16,402     15,964     16,118
    Corporate stocks and Federal Home
     Loan Bank stock                         55,566     51,859     56,358
    
    Loans: Commercial                       471,164    393,224    434,292
           Residential                      468,212    315,193    430,539
           Consumer                         209,615    146,834    192,529
                                          ---------- ---------- ----------
    
           Total loans                    1,148,991    855,251  1,057,360
    
    Earning assets                        2,093,073  1,728,581  1,970,214
    Total assets                          2,221,439  1,850,939  2,091,943
    
    Deposits: Demand                        210,974    193,908    190,906
              Savings                       611,911    491,690    543,870
              Time                          601,822    477,485    545,266
                                          ---------- ---------- ----------
    
          Total deposits                  1,424,707  1,163,083  1,280,042
    
    Federal Home Loan Bank advances         634,346    537,486    656,802
    Shareholders' equity                    145,151    132,559    139,525
    
    KEY RATIOS
    -----------
    Return on average assets                   0.96%      1.02%      0.96%
    Return on average equity                  14.70%     14.30%     14.46%
    Interest rate spread (taxable
     equivalent basis)                         2.40%      2.45%      2.47%
    Net interest margin (taxable
     equivalent basis)                         2.69%      2.75%      2.72%
    
    ALLOWANCE FOR LOAN LOSSES
    --------------------------
    Balance at beginning of period          $16,208    $15,742    $16,174
    Provision charged to earnings               120        100        120
    Net (charge-offs) recoveries                299        (29)       (86)
                                          ---------- ---------- ----------
    
    Balance at end of period                $16,627    $15,813    $16,208
                                          ---------- ---------- ----------
    
    
    
    
                 Washington Trust Bancorp, Inc. and Subsidiary
                               FINANCIAL SUMMARY
    
                                                     NINE MONTHS ENDED
                                                   ---------------------
    (Dollars and shares in thousands,               SEP. 30,   SEP. 30,
     except per share amounts)                          2004       2003
                                                   ---------- ----------
    
    OPERATING RESULTS
    -----------------
    Net interest income                              $40,057    $35,938
    Provision for loan losses                            360        360
    Net realized (losses) gains on securities           (139)       630
    Other noninterest income                          20,070     20,205
    Noninterest expenses                              37,279     36,016
    Income tax expense                                 7,018      6,333
    Net income                                        15,331     14,064
    
    PER SHARE
    ---------
    Basic earnings                                     $1.16      $1.07
    Diluted earnings                                   $1.13      $1.05
    Dividends declared                                 $0.51      $0.46
    
    SHARES OUTSTANDING
    ------------------
    Weighted Average:      Basic                    13,217.1   13,094.5
                           Diluted                  13,520.1   13,341.8
    
    AVERAGE BALANCE SHEET
    ---------------------
    Federal funds sold and other short-term
     investments                                     $12,824    $16,293
    Taxable debt securities                          831,661    778,815
    Nontaxable debt securities                        15,588     16,515
    Corporate stocks and Federal Home Loan
     Bank stock                                       55,481     50,573
    
    Loans:                 Commercial                439,482    392,926
                           Residential               430,002    301,402
                           Consumer                  190,979    139,321
                                                   ---------- ----------
    
                           Total loans             1,060,463    833,649
    
    Earning assets                                 1,976,017  1,695,845
    Total assets                                   2,100,949  1,816,512
    
    Deposits:              Demand                    190,797    172,141
                           Savings                   551,160    474,725
                           Time                      558,365    479,490
                                                   ---------- ----------
    
                           Total deposits          1,300,322  1,126,356
    
    Federal Home Loan Bank advances                  641,422    539,799
    Shareholders' equity                             142,429    132,634
    
    KEY RATIOS
    ----------
    Return on average assets                            0.97%      1.03%
    Return on average equity                           14.35%     14.14%
    Interest rate spread (taxable equivalent basis)     2.50%      2.59%
    Net interest margin (taxable equivalent basis)      2.76%      2.89%
    
    ALLOWANCE FOR LOAN LOSSES
    -------------------------
    Balance at beginning of period                   $15,914    $15,487
    Provision charged to earnings                        360        360
    Net (charge-offs) recoveries                         353        (34)
                                                   ---------- ----------
    
    Balance at end of period                         $16,627    $15,813
                                                   ---------- ----------
    
    
                 Washington Trust Bancorp, Inc. and Subsidiary
                               FINANCIAL SUMMARY
    
                                                         NINE MONTHS ENDED
                                                         -----------------
    (Dollars and shares in thousands,                    SEP. 30, SEP. 30,
     except per share amounts)                              2004     2003
                                                         -------- --------
    
    EARNINGS AND RATIOS EXCLUDING SPECIAL ITEMS
    -------------------------------------------
    (Non GAAP Financial Information):
    Noninterest expenses (1)                             $37,279  $35,075
    Return on average assets (2)                            0.97%    1.08%
    Return on average equity (2)                           14.35%   14.79%
    
    Reconciliation Table - Non GAAP Financial Information
    -----------------------------------------------------
    Net income, including special items                  $15,331  $14,064
    Add back special items, net of tax:
    Debt prepayment penalties                                  -      649
    Net income, excluding special items                  $15,331  $14,713
    
    Basic earnings per share                               $1.16    $1.07
    Effects of special items, net of tax                       -     0.05
    Basic earnings per share, excluding special items      $1.16    $1.12
    
    Diluted earnings per share                             $1.13    $1.05
    Effects of special items, net of tax                       -     0.05
    Diluted earnings per share, excluding special items    $1.13    $1.10
    
    Return on average assets                                0.97%    1.03%
    Effects of special items, net of tax                       -     0.05%
    Return on average assets, excluding special items       0.97%    1.08%
    
    Return on average equity                               14.35%   14.14%
    Effects of special items, net of tax                       -     0.65%
    Return on average equity, excluding special items      14.35%   14.79%
    
    (1) Excludes second quarter 2003 Federal Home Loan Bank debt
        prepayment penalties of $941 thousand (pretax).
    
    (2) Excludes second quarter 2003 Federal Home Loan Bank debt
        prepayment penalties of $649 thousand after income taxes.
    
    
                     Washington Trust Bancorp, Inc. and Subsidiary
                                   FINANCIAL SUMMARY
    
    
    
    (Dollars and shares in
     thousands, except per  SEP. 30,    JUN. 30,    DEC. 31,   SEP. 30,
     share amounts)            2004        2004        2003        2003
    
    PERIOD END BALANCE SHEET
    ------------------------
    Assets                $2,280,115  $2,178,990  $1,973,807  $1,931,190
    Total securities         899,678     902,998     839,421     844,490
    Loans:
           Commercial:
            Mortgages        253,327     239,651     227,334     214,412
            Construction
             and
             development      22,504      20,376      12,486      13,352
            Other            206,559     188,314     168,657     167,747
                          ----------- ----------- ----------- -----------
              Total
               Commercial:   482,390     448,341     408,477     395,511
    
           Residential:
            Mortgages        476,705     433,976     375,706     358,489
            Homeowner
             construction     21,154      17,079      14,149      13,616
                          ----------- ----------- ----------- -----------
              Total
               Residential:  497,859     451,055     389,855     372,105
    
           Consumer:
           Home equity
            lines            146,291     134,299     116,458     106,075
           Other              70,932      67,344      46,191      44,664
                          ----------- ----------- ----------- -----------
              Total
               Consumer:     217,223     201,643     162,649     150,739
           Total loans     1,197,472   1,101,039     960,981     918,355
    
    Deposits:
           Demand            215,685     200,923     194,144     196,952
            Savings          640,277     566,976     493,878     492,322
            Time             613,036     574,004     518,119     495,594
    
            Total
             deposits      1,468,998   1,341,903   1,206,141   1,184,868
    
    Brokered deposits included
     in time deposits        169,795     153,373     118,234     106,724
    Federal Home Loan Bank
     advances                639,835     676,336     607,104     590,675
    Shareholders' equity     148,402     138,542     138,055     136,006
    
    CAPITAL RATIOS
    --------------
    Tier 1 risk-based capital   9.09%       9.41%      10.00%      10.00%
    Total risk-based capital   10.63%      10.95%      11.57%      11.49%
    Tier 1 leverage ratio       5.34%       5.51%       5.65%       5.72%
    
    SHARE INFORMATION
    -----------------
    Shares outstanding at end
     of period              13,247.7    13,227.9    13,194.6    13,153.7
    Book value per share      $11.20      $10.47      $10.46      $10.34
    Tangible book value per
     share                     $9.39       $8.64       $8.60       $8.46
    Market value per share    $26.15      $25.99      $26.20      $24.01
    
    CREDIT QUALITY
    --------------
    Nonaccrual loans          $5,163      $4,987      $2,743      $3,345
    Other real estate owned,
     net                           -           8          11          23
    Nonperforming assets to
     total assets               0.23%       0.23%       0.14%       0.17%
    Nonaccrual loans to total
     loans                      0.43%       0.45%       0.29%       0.36%
    Allowance for loan losses
     to nonaccrual loans      322.04%     325.01%     580.17%     472.74%
    Allowance for loan losses
     to total loans             1.39%       1.47%       1.66%       1.72%
    
    ASSETS UNDER ADMINISTRATION
    ---------------------------
    Market value          $1,837,302  $1,783,747  $1,741,948  $1,618,239
    
    
                 Washington Trust Bancorp, Inc. and Subsidiary
                          CONSOLIDATED BALANCE SHEETS
    
    (Dollars in thousands)
                                              (Unaudited)
                                            September 30,   December 31,
                                                    2004           2003
                                            -------------- --------------
    
    Assets:
    
    Cash and due from banks                       $45,316        $40,710
    Federal funds sold and other short-term
     investments                                   11,560         20,400
    Mortgage loans held for sale                   11,702          2,486
    Securities:
     Available for sale, at fair value;
      amortized cost $739,516 in 2004
      and $663,529 in 2003                        751,240        673,845
     Held to maturity, at cost; fair value
      $150,918 in 2004 and $169,401 in 2003       148,438        165,576
                                            -------------- --------------
    
     Total securities                             899,678        839,421
    
    Federal Home Loan Bank stock, at cost          34,373         31,464
    
    Loans                                       1,197,472        960,981
    Less allowance for loan losses                 16,627         15,914
                                            -------------- --------------
    
     Net loans                                  1,180,845        945,067
    
    Premises and equipment, net                    24,620         24,941
    Accrued interest receivable                     9,206          7,911
    Goodwill                                       22,591         22,591
    Identifiable intangible assets                  1,470          1,953
    Other assets                                   38,754         36,863
                                            -------------- --------------
     Total assets                              $2,280,115     $1,973,807
                                            ============== ==============
    Liabilities:
    
    Deposits:
     Demand                                      $215,685       $194,144
     Savings                                      640,277        493,878
     Time                                         613,036        518,119
                                            -------------- --------------
    
     Total deposits                             1,468,998      1,206,141
    
    Dividends payable                               2,254          2,113
    Federal Home Loan Bank advances               639,835        607,104
    Other borrowings                                2,637          2,311
    Accrued expenses and other liabilities         17,989         18,083
                                            -------------- --------------
     Total liabilities                          2,131,713      1,835,752
                                            -------------- --------------
    
    Shareholders' Equity:
    
    Common stock of $.0625 par value;
     authorized 30 million shares;
     issued 13,256,668 shares in 2004 and
     13,204,024 shares in 2003                        828            825
    Paid-in capital                                31,363         29,868
    Retained earnings                             110,073        101,492
    Unearned stock-based compensation                (811)           (22)
    Accumulated other comprehensive income          7,150          6,101
    Treasury stock, at cost; 8,993 shares
     in 2004 and 9,463 in 2003                       (201)          (209)
                                            -------------- --------------
     Total shareholders' equity                   148,402        138,055
                                            -------------- --------------
     Total liabilities and shareholders'
      equity                                   $2,280,115     $1,973,807
                                            ============== ==============
    
    
                 Washington Trust Bancorp, Inc. and Subsidiary
                       CONSOLIDATED STATEMENTS OF INCOME
    
    (Dollars and shares in thousands,
     except per share amounts)
                                                (Unaudited)
                                      Three Months         Nine Months
    Periods ended September 30,       2004      2003      2004      2003
                                  --------- --------- --------- ---------
    
    Interest income:
     Interest and fees on loans    $15,762   $12,568   $43,690   $38,067
     Interest on securities          8,742     7,592    25,104    24,480
     Dividends on corporate stock
      and Federal Home Loan Bank
      stock                            562       528     1,542     1,546
     Interest on federal funds
      sold and other short-term
      investments                       47        35        87       111
                                  --------- --------- --------- ---------
    
     Total interest income          25,113    20,723    70,423    64,204
                                  --------- --------- --------- ---------
    
    Interest expense:
     Savings deposits                1,180       724     2,803     2,554
     Time deposits                   4,756     3,740    12,904    11,473
     Federal Home Loan Bank
      advances                       5,281     4,514    14,615    14,184
     Other                              14        18        44        55
                                  --------- --------- --------- ---------
    
     Total interest expense         11,231     8,996    30,366    28,266
                                  --------- --------- --------- ---------
    
    Net interest income             13,882    11,727    40,057    35,938
    Provision for loan losses          120       100       360       360
                                  --------- --------- --------- ---------
    
    Net interest income after
     provision for loan losses      13,762    11,627    39,697    35,578
                                  --------- --------- --------- ---------
    
    Noninterest income:
     Trust and investment
      management                     3,218     2,692     9,593     7,969
     Service charges on deposit
      accounts                       1,066     1,242     3,428     3,690
     Merchant processing fees        1,643     1,412     3,335     2,731
     Net gains on loan sales           348     1,383     1,257     4,062
     Income from bank-owned life
      insurance                        293       298       887       845
     Net realized gains (losses)
      on securities                    101         -      (139)      630
     Other income                      398       420     1,570       908
                                  --------- --------- --------- ---------
    
     Total noninterest income        7,067     7,447    19,931    20,835
                                  --------- --------- --------- ---------
    
    Noninterest expense:
     Salaries and employee
      benefits                       7,439     6,974    21,634    20,127
     Net occupancy                     770       671     2,382     2,169
     Equipment                         837       830     2,395     2,504
     Merchant processing costs       1,398     1,139     2,746     2,184
     Advertising and promotion         429       261     1,433     1,073
     Outsourced services               357       328     1,200     1,024
     Legal, audit and
      professional fees                379       394       882       990
     Amortization of intangibles       161       180       483       539
     Debt prepayment penalties           -         -         -       941
     Other                           1,284     1,413     4,124     4,465
                                  --------- --------- --------- ---------
    
     Total noninterest expense      13,054    12,190    37,279    36,016
                                  --------- --------- --------- ---------
    
    Income before income taxes       7,775     6,884    22,349    20,397
    Income tax expense               2,442     2,144     7,018     6,333
                                  --------- --------- --------- ---------
    
     Net income                     $5,333    $4,740   $15,331   $14,064
                                  --------- --------- --------- ---------
    
    Weighted average shares
     outstanding - basic          13,235.7  13,133.8  13,217.1  13,094.5
    Weighted average shares
     outstanding - diluted        13,514.0  13,486.8  13,520.1  13,341.8
    Per share information:
     Basic earnings per share         $.40      $.36     $1.16     $1.07
     Diluted earnings per share       $.39      $.35     $1.13     $1.05
     Cash dividends declared per
      share                           $.17      $.16      $.51      $.46
    
    
        CONTACT: Washington Trust Bancorp, Inc.
                 Elizabeth B. Eckel, 401-348-1309
                 ebeckel@washtrust.com
    
        SOURCE: Washington Trust Bancorp, Inc.