• Washington Trust Bancorp, Inc.
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  • Washington Trust Reports Record Earnings; Third Quarter Earnings Per Share up 10%
    Company Release - 10/27/2005 08:30

    WESTERLY, R.I.--(BUSINESS WIRE)--Oct. 27, 2005--Washington Trust Bancorp, Inc. (Nasdaq National Market; symbol: WASH), parent company of The Washington Trust Company, today announced third quarter 2005 net income of $5.8 million, an increase of 9 percent from the $5.3 million reported for the third quarter of 2004. On a per diluted share basis, the Corporation earned 43 cents for the third quarter of 2005, up 4 cents, or 10%, from the 39 cents earned for the same quarter in 2004.

    Net income for the nine months ended September 30, 2005 amounted to $16.9 million, an increase of 10 percent from the $15.3 million reported for the same period a year ago. On a per diluted share basis, earnings for the nine months ended September 30, 2005 were $1.24, up 11 cents from the $1.13 for the first nine months of 2004.

    As previously reported, Washington Trust completed its acquisition of Weston Financial Group, Inc. ("Weston") on August 31, 2005. Washington Trust financed the acquisition of Weston through the issuance of $22.7 million of junior subordinated debentures to newly-formed special purpose finance entities. Third quarter 2005 financial results include the operations of Weston for the period subsequent to August 31, 2005. In addition, one-time expenses associated with the acquisition equivalent to 3 cents per share were incurred in third quarter 2005.

    "Washington Trust had an exceptional quarter," stated John C. Warren, Washington Trust Chairman and Chief Executive Officer, "Highlighted by record earnings and earnings per share." He continued, "A major highlight of the quarter was the acquisition of Weston Financial Group, which helped revenues from wealth management and trust increase 26 percent over the third quarter of 2004. Our Wealth Management assets under administration now stand at $3.2 billion." Warren added, "We also had good balance sheet growth, particularly in our loan portfolio, which has increased by 12 percent since the end of 2004."

    Net interest income for the third quarter of 2005 increased $1.5 million, or 11 percent, compared to the third quarter a year ago. This increase in net interest income was primarily due to increased volume of interest-earning assets and the impact of interest rate increases on earning asset yields. Included in net interest income in the third quarters of 2005 and 2004 were loan prepayment and other fees totaling $288 thousand and $82 thousand, respectively. The net interest margin for the three months ended September 30, 2005 amounted to 2.78%, compared to 2.76% in the second quarter of 2005, and 2.69% in the third quarter of 2004. The contribution of loan prepayment and other fees to the net interest margin was 5 basis points in the third quarter of 2005, 3 basis points in the second quarter of 2005 and 2 basis points in the third quarter of 2004. In connection with a portion of the loan prepayment fees received in the third quarter of 2005, a corresponding debt prepayment penalty expense of $129 thousand was incurred due to the payoff of a match-funded FHLB advance. The debt prepayment penalty expense was included in other noninterest expenses in the third quarter of 2005.

    Excluding net realized gains and losses on securities, noninterest income for the third quarter of 2005 increased $1.4 million, or 20 percent, over the same quarter a year ago, largely due to higher revenues from wealth management and trust services. Revenue from wealth management and trust services represented 49% of noninterest income (excluding net realized gains and losses on securities) for the third quarter of 2005. This revenue increased $848 thousand, or 26 percent, over the third quarter of 2004 primarily due to the acquisition of Weston, which was completed on August 31, 2005. This revenue is largely dependent on the value of assets under administration and is closely tied to the performance of the financial markets. Assets under administration totaled $3.219 billion at September 30, 2005 and included $1.348 billion attributable to Weston. Assets under administration were $1.837 billion at September 30, 2004.

    Noninterest expenses for the third quarter of 2005 increased 13 percent over the third quarter a year ago. Included in noninterest expenses in the third quarter of 2005 were direct acquisition and acquisition related costs amounting to $605 thousand ($440 thousand, after tax), which accounted for approximately 4 percent of the quarter-to-quarter increase. Acquisition related costs included costs incurred in connection with management changes, organization costs related to the establishment of the trust preferred entities, acquisition related accounting and legal costs and other charges. Excluding the acquisition related costs and debt prepayment penalty expense, noninterest expenses for the third quarter of 2005 grew 8 percent over the same quarter last year. Growth in noninterest expenses was principally due to operating expenses of the newly acquired entity, increases in compensation and benefit costs, and higher audit and other costs associated with the requirements of Section 404 of the Sarbanes-Oxley Act.

    In the first nine months of 2005, Washington Trust's loan portfolio increased $146.4 million, or 12 percent, to $1.396 billion at September 30, 2005. Residential real estate loans grew $71.3 million, or 14 percent, during the nine months of 2005, including an increase of $24.2 million in purchased residential mortgages. Consumer loans increased $28.1 million, or 12 percent, in the first nine months of 2005, due primarily to growth in home equity lines and loans. Commercial loans, including commercial real estate and construction loans, grew $47.1 million, or 9 percent, from the balance at December 31, 2004.

    Total securities at September 30, 2005 declined $107.9 million in the first nine months of 2005. The flattening of the yield curve has made reinvestment of maturing balances relatively unattractive during this period.

    Total deposits amounted to $1.610 billion at September 30, 2005, up $152.4 million, or 10 percent, from the balance at December 31, 2004, with the largest increase in certificates of deposit. During the first nine months of 2005, the Corporation reduced its Federal Home Loan Bank advance borrowing position by $94.8 million, primarily in connection with the reduction of the securities portfolio.

    Asset quality, as measured by the level of nonperforming assets, continues to be strong in 2005. Nonperforming assets (nonaccrual loans and property acquired through foreclosure) declined during the first nine months of 2005 and were below December 31, 2004 and September 30, 2004 levels. Nonperforming assets totaled $1.9 million, or .08% of total assets, at September 30, 2005.

    The allowance for loan losses was $17.6 million, or 1.26% of total loans, at September 30, 2005, compared to $16.8 million, or 1.34%, at December 31, 2004. The Corporation's loan loss provision amounted to $300 thousand for the third quarter of 2005 and $900 thousand for the first nine months of 2005. Comparable amounts for the prior year totaled $120 thousand for third quarter 2004 and $360 thousand for the nine months ended September 30, 2004. The increase in the Corporation's loan loss provision was in response to growth in the loan portfolio.

    Total shareholders' equity amounted to $157.3 million at September 30, 2005, compared to $151.9 million at December 31, 2004. Book value per share as of September 30, 2005 and December 31, 2004 amounted to $11.78 and $11.44, respectively.

    Washington Trust Chairman and Chief Executive Officer, John C. Warren, and David V. Devault, Executive Vice President, Secretary, Treasurer, and Chief Financial Officer, will host a conference call on Thursday, October 27, at 4:30 p.m. (Eastern 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 location on 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. Washington Trust offers personal banking, business banking and wealth management services through its offices in Rhode Island, Massachusetts 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.

    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)                  2005      2004      2005
                                             --------- --------- ---------
    Operating Results
    -----------------
    Net interest income                       $15,360   $13,882   $14,972
    Provision for loan losses                     300       120       300
    Net realized gains (losses) on securities      17       101         3
    Other noninterest income                    8,357     6,966     6,991
    Noninterest expenses                       14,810    13,054    13,373
    Income tax expense                          2,802     2,442     2,654
    Net income                                  5,822     5,333     5,639
    
    Per Share
    ---------
    Basic earnings                              $0.44     $0.40     $0.42
    Diluted earnings                            $0.43     $0.39     $0.41
    Dividends declared                          $0.18     $0.17     $0.18
    
    Weighted Average Shares Outstanding
    -----------------------------------
           Basic                             13,330.3  13,235.7  13,296.0
           Diluted                           13,641.9  13,514.0  13,592.3
    
    Key Ratios
    ----------
    Return on average assets                     0.98%     0.96%     0.97%
    Return on average equity                    14.75%    14.70%    14.58%
    Interest rate spread (taxable equivalent
     basis)                                      2.46%     2.40%     2.48%
    Net interest margin (taxable equivalent
     basis)                                      2.78%     2.69%     2.76%
    
    Allowance for Loan Losses
    -------------------------
    Balance at beginning of period            $17,442   $16,208   $17,058
    Provision charged to earnings                 300       120       300
    Reclassification of allowance on off-
     balance sheet exposures                     (250)        -         -
    Net (charge-offs) recoveries                  122       299        84
                                             --------- --------- ---------
    
    Balance at end of period                  $17,614   $16,627   $17,442
                                             --------- --------- ---------
    
    
    
                Washington Trust Bancorp, Inc. and Subsidiary
                              FINANCIAL SUMMARY
    
                                                    Nine Months Ended
                                                 ------------------------
    (Dollars and shares in thousands,              Sep. 30,     Sep. 30,
     except per share amounts)                       2005         2004
                                                 -----------  -----------
    Operating Results
    -----------------
    Net interest income                             $44,953      $40,057
    Provision for loan losses                           900          360
    Net realized gains (losses) on securities            20         (139)
    Other noninterest income                         21,427       20,070
    Noninterest expenses                             40,627       37,279
    Income tax expense                                8,002        7,018
    Net income                                       16,871       15,331
    
    Per Share
    ---------
    Basic earnings                                    $1.27        $1.16
    Diluted earnings                                  $1.24        $1.13
    Dividends declared                                $0.54        $0.51
    
    Weighted Average Shares Outstanding
           Basic                                   13,303.2     13,217.1
           Diluted                                 13,615.8     13,520.1
    
    Key Ratios
    ----------
    Return on average assets                           0.96%        0.97%
    Return on average equity                          14.51%       14.35%
    Interest rate spread (taxable equivalent basis)    2.48%        2.50%
    Net interest margin (taxable equivalent basis)     2.77%        2.76%
    
    Allowance for Loan Losses
    -------------------------
    Balance at beginning of period                  $16,771      $15,914
    Provision charged to earnings                       900          360
    Reclassification of allowance on off-
     balance sheet exposures                           (250)           -
    Net (charge-offs) recoveries                        193          353
                                                 -----------  -----------
    
    Balance at end of period                        $17,614      $16,627
                                                 -----------  -----------
    
    
                Washington Trust Bancorp, Inc. and Subsidiary
                              FINANCIAL SUMMARY
    
    (Dollars and shares in thousands,    Sep. 30,    Dec. 31,    Sep. 30,
     except per share amounts)            2005        2004        2004
                                       ----------- ----------- -----------
    Period-End Balance Sheet
    ------------------------
    Assets                             $2,403,161  $2,307,820  $2,280,115
    Total securities                      782,207     890,058     899,678
    Loans:
           Commercial and other:
             Mortgages                    285,450     266,670     253,327
             Construction and
              development                  33,862      29,263      22,504
             Other                        235,457     211,778     206,559
           Total commercial and other     554,769     507,711     482,390
    
           Residential real estate:
             Mortgages                    568,675     494,720     476,705
             Homeowner construction        16,302      18,975      21,154
           Total residential real
            estate                        584,977     513,695     497,859
    
           Consumer:
             Home equity lines            163,727     155,001     146,291
             Other                         92,639      73,269      70,932
           Total consumer                 256,366     228,270     217,223
    
           Total loans                  1,396,112   1,249,676   1,197,472
    
    Deposits:
           Demand deposits                216,061     189,588     215,685
           NOW accounts                   186,615     174,727     162,422
           Money market accounts          219,982     196,775     218.793
           Savings accounts               227,834     251,920     259,062
           Time deposits                  759,746     644,875     613,036
    
           Total deposits               1,610,238   1,457,885   1,468,998
    
    Brokered deposits included in time
     deposits                             172,598     169,587     169,795
    Federal Home Loan Bank advances       577,936     672,748     639,835
    Shareholders' equity                  157,251     151,852     148,402
    
    Capital Ratios
    --------------
    Tier 1 risk-based capital                8.82%       9.15%       9.09%
    Total risk-based capital                10.31%      10.72%      10.63%
    Tier 1 leverage ratio                    5.32%       5.35%       5.34%
    
    Share Information
    -----------------
    Shares outstanding at end of period  13,347.0    13,269.4    13,247.7
    Book value per share                   $11.78      $11.44      $11.20
    Tangible book value per share           $7.68       $9.64       $9.39
    Market value per share                 $27.19      $29.31      $26.15
    
    Credit Quality
    --------------
    Nonaccrual loans                       $1,873      $4,731      $5,163
    Other real estate owned, net                -           4           -
    Nonperforming assets to total assets     0.08%       0.21%       0.23%
    Nonaccrual loans to total loans          0.13%       0.38%       0.43%
    Allowance for loan losses to
     nonaccrual loans                      940.42%     354.49%     322.04%
    Allowance for loan losses to total
     loans                                   1.26%       1.34%       1.39%
    
    Assets Under Administration
    ---------------------------
    Market value                       $3,219,011  $1,870,510  $1,837,302
    
    
    
               Washington Trust Bancorp, Inc. and Subsidiary
                   CONSOLIDATED CONDENSED BALANCE SHEETS
                                               (Unaudited)
    (Dollars in thousands)                     September 30,  December 31,
                                                   2005          2004
                                               --------------------------
    
    Assets:
    Cash and due from banks                        $66,206      $34,801
    Federal funds sold and other short-term
     investments                                     8,657       17,280
    Mortgage loans held for sale                     2,241        1,095
    Securities:
     Available for sale, at fair value;
      amortized cost $610,263 in 2005 and
      $724,209 in 2004                             613,097      735,666
     Held to maturity, at cost; fair value
      $167,890 in 2005 and $156,270 in 2004        169,110      154,392
                                              --------------------------
    
     Total securities                              782,207      890,058
    
    Federal Home Loan Bank stock, at cost           34,966       34,373
    
    Loans:
      Commercial and other                         554,769      507,711
      Residential real estate                      584,977      513,695
      Consumer                                     256,366      228,270
                                              --------------------------
    
      Total loans                                1,396,112    1,249,676
     Less allowance for loan losses                 17,614       16,771
                                              --------------------------
    
     Net loans                                   1,378,498    1,232,905
    
    Premises and equipment, net                     23,942       24,248
    Accrued interest receivable                     10,284        9,367
    Investment in bank-owned life insurance         30,083       29,249
    Goodwill and identifiable intangible assets     54,808       23,900
    Other assets                                    11,269       10,544
                                              --------------------------
    
     Total assets                               $2,403,161   $2,307,820
                                              --------------------------
    
    Liabilities:
    Deposits:
     Demand deposits                              $216,061     $189,588
     NOW accounts                                  186,615      174,727
     Money market accounts                         219,982      196,775
     Savings accounts                              227,834      251,920
     Time deposits                                 759,746      644,875
                                              --------------------------
    
     Total deposits                              1,610,238    1,457,885
    
    Dividends payable                                2,404        2,257
    Federal Home Loan Bank advances                577,936      672,748
    Junior subordinated debentures                  22,681            -
    Other borrowings                                 8,768        3,417
    Accrued expenses and other liabilities          23,883       19,661
                                              --------------------------
    
     Total liabilities                           2,245,910    2,155,968
                                              --------------------------
    Shareholders' Equity:
    Common stock of $.0625 par value;
     authorized 30 million shares; issued
     13,356,053 shares in 2005 and 13,278,685
     in 2004                                           835          830
    Paid-in capital                                 33,293       31,718
    Retained earnings                              122,990      113,314
    Unearned stock-based compensation               (1,012)        (737)
    Accumulated other comprehensive income           1,354        6,937
    Treasury stock, at cost; 9,033 shares in
     2005 and 9,309 in 2004                           (209)        (210)
                                              --------------------------
    
     Total shareholders' equity                    157,251      151,852
                                              --------------------------
    
     Total liabilities and shareholders'
      equity                                    $2,403,161   $2,307,820
                                              --------------------------
    
    
    
                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,         2005     2004     2005     2004
                                      ------------------------------------
    Interest income:
     Interest and fees on loans        $20,418  $15,762  $57,339  $43,690
     Interest on securities              8,306    8,742   25,414   25,104
     Dividends on corporate stock and
      Federal Home Loan Bank stock         594      562    1,838    1,542
     Interest on federal funds sold
      and other short-term investments     187       47      321       87
                                      ------------------------------------
    
     Total interest income              29,505   25,113   84,912   70,423
                                      ------------------------------------
    
    Interest expense:
     Deposits                            8,241    5,936   22,800   15,707
     Federal Home Loan Bank advances     5,741    5,281   16,960   14,615
     Junior subordinated debentures        124        -      124        -
     Other                                  39       14       75       44
                                      ------------------------------------
    
     Total interest expense             14,145   11,231   39,959   30,366
                                      ------------------------------------
    
    Net interest income                 15,360   13,882   44,953   40,057
    Provision for loan losses              300      120      900      360
                                      ------------------------------------
    
    Net interest income after
     provision for loan losses          15,060   13,762   44,053   39,697
                                      ------------------------------------
    
    Noninterest income:
     Wealth management and trust
      services                           4,066    3,218   10,764    9,593
     Service charges on deposit
      accounts                           1,158    1,066    3,337    3,428
     Merchant processing fees            1,932    1,643    4,047    3,335
     Net gains on loan sales               415      348    1,320    1,257
     Net realized gains (losses) on
      securities                            17      101       20     (139)
     Income from bank-owned life
      insurance                            282      293      833      887
     Other income                          504      398    1,126    1,570
                                      ------------------------------------
    
     Total noninterest income            8,374    7,067   21,447   19,931
                                      ------------------------------------
    
    Noninterest expense:
     Salaries and employee benefits      8,194    7,439   23,103   21,634
     Net occupancy                         828      770    2,483    2,382
     Equipment                             832      837    2,583    2,395
     Merchant processing costs           1,623    1,398    3,357    2,746
     Advertising and promotion             460      429    1,496    1,433
     Outsourced services                   406      357    1,263    1,200
     Legal, audit and professional fees    513      379    1,425      882
     Amortization of intangibles           196      161      442      483
     Other                               1,758    1,284    4,475    4,124
                                      ------------------------------------
    
     Total noninterest expense          14,810   13,054   40,627   37,279
                                      ------------------------------------
    
    Income before income taxes           8,624    7,775   24,873   22,349
    Income tax expense                   2,802    2,442    8,002    7,018
                                      ------------------------------------
    
     Net income                         $5,822   $5,333  $16,871  $15,331
                                      ------------------------------------
    
    Weighted average shares
     outstanding - basic              13,330.3 13,235.7 13,303.2 13,217.1
    Weighted average shares
     outstanding - diluted            13,641.9 13,514.0 13,615.8 13,520.1
    Per share information:
     Basic earnings per share            $0.44    $0.40    $1.27    $1.16
     Diluted earnings per share          $0.43    $0.39    $1.24    $1.13
     Cash dividends declared per share   $0.18    $0.17    $0.54    $0.51
    
    
    
                Washington Trust Bancorp, Inc. and Subsidiary
                     CONSOLIDATED AVERAGE BALANCE SHEETS
    
                                           (Unaudited)
    Three months ended
     September 30,                 2005                     2004
                        --------------------------------------------------
    (Dollars in           Average          Yield/  Average          Yield/
     thousands)           Balance  Interest Rate   Balance  Interest Rate
                        --------------------------------------------------
    Assets:
    Residential real
     estate loans         $574,344  $7,104  4.91%  $468,212  $5,867  4.99%
    Commercial and other
     loans                 539,145   9,684  7.13%   471,164   7,531  6.36%
    Consumer loans         251,540   3,677  5.80%   209,615   2,408  4.57%
                        --------------------------------------------------
     Total loans         1,365,029  20,465  5.95% 1,148,991  15,806  5.47%
    Federal funds sold
     and other short-
     term investments       22,562     186  3.27%    16,206      46  1.13%
    Taxable debt
     securities            764,617   8,084  4.19%   855,908   8,578  3.99%
    Nontaxable debt
     securities             23,467     341  5.76%    16,402     251  6.08%
    Corporate stocks and
     FHLB stock             49,828     678  5.40%    55,566     677  4.85%
                        --------------------------------------------------
     Total securities      860,474   9,289  4.28%   944,082   9,552  4.03%
                        --------------------------------------------------
     Total interest-
      earning assets     2,225,503  29,754  5.30% 2,093,073  25,358  4.82%
    Non interest-earning
     assets                142,845                  128,366
                        --------------------------------------------------
     Total assets       $2,368,348               $2,221,439
                        --------------------------------------------------
    
    Liabilities and
     Shareholders' Equity:
    NOW accounts          $180,292     $76  0.17%  $165,206     $86  0.21%
    Money market
     accounts              203,148   1,141  2.23%   184,992     686  1.48%
    Savings deposits       229,051     332  0.58%   261,713     408  0.62%
    Time deposits          741,127   6,692  3.58%   601,822   4,756  3.14%
    FHLB advances          609,050   5,741  3.74%   634,346   5,280  3.31%
    Junior subordinated
     debentures              8,136     124  6.04%         -       -     -%
    Other                    3,513      40  4.55%     1,878      15  3.24%
                        --------------------------------------------------
     Total interest-
      bearing
      liabilities        1,974,317  14,146  2.84% 1,849,957  11,231  2.42%
    Demand deposits        214,256                  210,974
    Other liabilities       21,936                   15,357
    Shareholders' equity   157,839                  145,151
                        --------------------------------------------------
      Total liabilities
       and shareholders'
       equity           $2,368,348               $2,221,439
                        --------------------------------------------------
     Net interest income
      (FTE)                        $15,608                  $14,127
                        --------------------------------------------------
    Interest rate spread                    2.46%                    2.40%
    Net interest margin                     2.78%                    2.69%
    
    
    
                Washington Trust Bancorp, Inc. and Subsidiary
                     CONSOLIDATED AVERAGE BALANCE SHEETS
    
                                           (Unaudited)
    Nine months ended
     September 30,                  2005                     2004
                        --------------------------------------------------
    (Dollars in           Average          Yield/  Average          Yield/
     thousands)           Balance  Interest Rate   Balance  Interest Rate
                        --------------------------------------------------
    
    Assets:
    Residential real
     estate loans         $554,771 $20,498  4.94%  $430,002 $16,377  5.09%
    Commercial and other
     loans                 523,242  27,032  6.91%   439,482  21,126  6.42%
    Consumer loans         242,084   9,945  5.49%   190,979   6,306  4.41%
                        --------------------------------------------------
     Total loans         1,320,097  57,475  5.82% 1,060,463  43,809  5.52%
    Federal funds sold
     and other short-
     term investments       15,127     322  2.83%    12,824      87  0.90%
    Taxable debt
     securities            799,620  24,803  4.15%   831,661  24,626  3.96%
    Nontaxable debt
     securities             21,338     938  5.88%    15,588     734  6.29%
    Corporate stocks and
     FHLB stock             51,386   2,121  5.52%    55,481   1,882  4.53%
                        --------------------------------------------------
     Total securities      887,471  28,184  4.25%   915,554  27,329  3.99%
                        --------------------------------------------------
     Total interest-
      earning assets     2,207,568  85,659  5.19% 1,976,017  71,138  4.81%
    Non interest-earning
     assets                132,209                  124,932
                        --------------------------------------------------
     Total assets       $2,339,777               $2,100,949
                        --------------------------------------------------
    
    Liabilities and
     Shareholders' Equity:
    NOW accounts          $177,201    $231  0.17%  $159,323    $258  0.22%
    Money market
     accounts              195,585   2,900  1.98%   134,015   1,358  1.35%
    Savings deposits       239,794   1,081  0.60%   257,822   1,187  0.61%
    Time deposits          721,502  18,588  3.44%   558,365  12,903  3.09%
    FHLB advances          631,831  16,960  3.59%   641,422  14,615  3.04%
    Junior subordinated
     debentures              2,742     124  6.06%         -       -     -%
    Other                    2,311      76  4.37%     2,012      45  3.00%
                        --------------------------------------------------
     Total interest-
      bearing
      liabilities        1,970,966  39,960  2.71% 1,752,959  30,366  2.31%
    Demand deposits        195,451                  190,797
    Other liabilities       18,366                   14,764
    Shareholders' equity   154,994                  142,429
                        --------------------------------------------------
      Total liabilities
       and shareholders'
       equity           $2,339,777               $2,100,949
                        --------------------------------------------------
     Net interest income
      (FTE)                        $45,699                  $40,772
                        --------------------------------------------------
    Interest rate spread                    2.48%                    2.50%
    Net interest margin                     2.77%                    2.76%
    
    
        CONTACT: Washington Trust Bancorp
                 Elizabeth B. Eckel, 401-348-1309
                 ebeckel@washtrust.com
    
        SOURCE: Washington Trust Bancorp