• Washington Trust Bancorp, Inc.
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  • Washington Trust Posts Record Earnings; Up 12% for Fourth Quarter and 11% for the Year
    Company Release - 01/26/2006 08:01

    WESTERLY, R.I.--(BUSINESS WIRE)--Jan. 26, 2006--Washington Trust Bancorp, Inc. (Nasdaq National Market; symbol: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2005 net income of $6.2 million, an increase of 12 percent from the $5.5 million reported for the fourth quarter of 2004. On a per diluted share basis, the Corporation earned 45 cents for the fourth quarter of 2005, up 5 cents, or 12.5 percent, from the 40 cents earned for the same quarter in 2004. Other highlights include:

        --  Fourth quarter 2005 return on average equity and average
            assets were 15.63% and 1.03%, respectively, compared to 14.54%
            and 0.96%, respectively, in 2004.
    
        --  Total loans increased 12 percent from December 31, 2004.
    
        --  Total deposits up 12 percent from December 31, 2004.
    
        --  Asset quality remained strong as nonperforming assets to total
            assets declined from 0.21% a year ago to 0.10% at December 31,
            2005.
    

    Net income for the year ended December 31, 2005 amounted to $23.0 million, an increase of 11 percent from the $20.8 million reported for the same period a year ago. On a per diluted share basis, earnings for the year ended December 31, 2005 were $1.69, up 15 cents from the $1.54 for 2004.

    As previously reported, Washington Trust completed its acquisition of Weston Financial Group, Inc. ("Weston Financial") on August 31, 2005. Financial results for the fourth quarter of 2005 include a full quarter of Weston Financial operations for the first time. Results for the year ended December 31, 2005 include the operations of Weston Financial for the period subsequent to August 31, 2005. In addition, one-time expenses associated with the acquisition equivalent to 3 cents per share were recognized in the third quarter of 2005.

    "We had an outstanding quarter and an exceptional year, with record earnings and earnings per share," stated John C. Warren, Washington Trust Chairman and Chief Executive Officer. He continued, "These results illustrate our success at managing our key lines of business and are gratifying considering the highly competitive and challenging interest rate environment in which we operate."

    Net interest income for the fourth quarter of 2005 increased $1.3 million, or 9 percent, compared to the fourth quarter a year ago. This increase in net interest income was attributable to the higher amount of loans as a percentage of interest-earning assets and to changes in loan and deposit rates. The net interest margin for the three months ended December 31, 2005 amounted to 2.84%, compared to 2.78% in the third quarter of 2005, and 2.69% in the fourth quarter of 2004.

    For the year 2005, net interest income increased $6.2 million, or 11 percent, which reflects a $191.1 million increase in the balance of average interest-earning assets and a 5 basis point increase in the net interest margin.

    Excluding net realized gains on securities, noninterest income for the fourth quarter of 2005 amounted to $9.2 million, or 37% of total revenues, compared to $6.6 million, or 31%, for the fourth quarter a year ago. Noninterest income (excluding net realized gains on securities) increased 39 percent over the same quarter a year ago, mainly due to higher revenues from wealth management and trust services. Primarily due to the acquisition of Weston Financial, fourth quarter 2005 revenue from wealth management and trust services increased $2.2 million, or 63.5 percent, over the fourth quarter of 2004. Revenue from wealth management and trust services 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 $3.272 billion at December 31, 2005 and included $1.376 billion attributable to Weston Financial. Assets under administration were $1.871 billion at December 31, 2004.

    Noninterest income (excluding net realized gains on securities) for the year ended December 31, 2005 increased $3.9 million, or 15 percent, primarily due to the $3.4 million increase in revenues from wealth management and trust services.

    The Corporation recognized net realized gains on securities of $337 thousand and $387 thousand in the fourth quarter of 2005 and 2004, respectively, resulting principally from the Corporation's annual contributions of appreciated equity securities to the Corporation's charitable foundation. The cost of the contributions, included in noninterest expenses, amounted to $522 thousand and $454 thousand in the fourth quarter of 2005 and 2004, respectively.

    Noninterest expenses for the fourth quarter of 2005 increased $2.7 million, or 20 percent, over the fourth quarter a year ago. Approximately $1.9 million, or 70 percent, of this increase was attributable to the operating expenses of Weston Financial.

    For the year ended December 31, 2005, noninterest expenses totaled $56.4 million, up $6.0 million, or 12 percent, from 2004. Excluding one-time acquisition charges and the operating expenses of Weston Financial, noninterest expenses for year 2005 were up $2.9 million, or 6 percent, over last year, with the largest increase in salaries and employee benefits.

    Washington Trust's loan portfolio amounted to $1.402 billion at December 31, 2005, up $152.2 million, or 12 percent, in 2005. Residential real estate loans grew $69.0 million, or 13 percent, during the twelve months of 2005, including an increase of $13.3 million in purchased residential mortgages. Commercial loans, including commercial real estate and construction loans, grew $47.0 million, or 9 percent, from the balance at December 31, 2004. Consumer loans increased $36.2 million, or 16 percent, in 2005, primarily due to growth in home equity lines and loans.

    Total securities declined $106.1 million in 2005. The flattening of the yield curve has made reinvestment of maturing balances relatively unattractive during this period. The funds provided by this deleveraging were primarily used to reduce the Federal Home Loan Bank advance borrowing position by $127.4 million. Total deposits amounted to $1.639 billion at December 31, 2005, up $181.4 million, or 12 percent, from the balance at December 31, 2004 with the largest increase in time deposits.

    Asset quality, as measured by the level of nonperforming assets, continued to be strong in 2005. Nonperforming assets (nonaccrual loans and property acquired through foreclosure) totaled $2.4 million, or 0.10% of total assets, at December 31, 2005, compared to $4.7 million, or 0.21%, a year ago. Loan recoveries, net of charge-offs, amounted to $197 thousand in 2005 and $247 thousand in 2004.

    The allowance for loan losses was $17.9 million, or 1.28% of total loans, at December 31, 2005, compared to $16.8 million, or 1.34% of total loans, at December 31, 2004. The Corporation's loan loss provision charged to earnings amounted to $300 thousand for the fourth quarter of 2005 and $1.2 million for the year 2005. Comparable amounts for the prior year were $250 thousand for the fourth quarter of 2004 and $610 thousand for the year 2004. The increase in the Corporation's loan loss provision was in response to growth in the loan portfolio.

    Total shareholders' equity amounted to $158.4 million at December 31, 2005, compared to $151.9 million at December 31, 2004. Book value per share as of December 31, 2005 and 2004 amounted to $11.86 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, January 26, at 4:30 p.m. (Eastern Time) to discuss the Corporation's fourth 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 Subsidiaries
                              FINANCIAL SUMMARY
    
                                                  Three Months Ended
                                            ------------------------------
    (Dollars and shares in thousands,         Dec. 31,  Dec. 31,  Sep. 30,
     except per share amounts)                  2005      2004      2005
                                             --------- --------- ---------
    
    Operating Results
    -----------------
    Net interest income                     $  15,703 $  14,384 $  15,360
    Provision for loan losses                     300       250       300
    Net realized gains on securities              337       387        17
    Other noninterest income                    9,162     6,587     8,357
    Noninterest expenses                       15,766    13,094    14,810
    Income tax expense                          2,983     2,516     2,802
    Net income                                  6,153     5,498     5,822
    
    Per Share
    ---------
    Basic earnings                          $    0.46 $    0.41 $    0.44
    Diluted earnings                        $    0.45 $    0.40 $    0.43
    Dividends declared                      $    0.18 $    0.17 $    0.18
    
    Weighted Average Shares Outstanding
    -----------------------------------
           Basic                             13,362.9  13,259.7  13,330.3
           Diluted                           13,670.1  13,605.1  13,641.9
    
    Key Ratios
    ----------
    Return on average assets                     1.03%     0.96%     0.98%
    Return on average equity                    15.63%    14.54%    14.75%
    Interest rate spread (taxable equivalent
     basis)                                      2.53%     2.42%     2.46%
    Net interest margin (taxable equivalent
     basis)                                      2.84%     2.69%     2.78%
    
    Allowance for Loan Losses
    -------------------------
    Balance at beginning of period          $  17,614 $  16,627 $  17,442
    Provision charged to earnings                 300       250       300
    Reclassification of allowance on off-
     balance sheet exposures                        -         -      (250)
    Net (charge-offs) recoveries                    4      (106)      122
                                             --------- --------- ---------
    
    Balance at end of period                $  17,918 $  16,771 $  17,614
                                             ========= ========= =========
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                               FINANCIAL SUMMARY
    
                                                      Twelve Months Ended
                                                      --------------------
    
    (Dollars and shares in thousands,                   Dec. 31,  Dec. 31,
     except per share amounts)                            2005      2004
                                                       --------- ---------
    
    Operating Results
    -----------------
    Net interest income                               $  60,656 $  54,441
    Provision for loan losses                             1,200       610
    Net realized gains on securities                        357       248
    Other noninterest income                             30,589    26,657
    Noninterest expenses                                 56,393    50,373
    Income tax expense                                   10,985     9,534
    Net income                                           23,024    20,829
    
    Per Share
    ---------
    Basic earnings                                    $    1.73 $    1.57
    Diluted earnings                                  $    1.69 $    1.54
    Dividends declared                                $    0.72 $    0.68
    
    Weighted Average Shares Outstanding
           Basic                                       13,319.7  13,227.8
           Diluted                                     13,631.2  13,542.7
    
    Key Ratios
    ----------
    Return on average assets                               0.98%     0.97%
    Return on average equity                              14.80%    14.40%
    Interest rate spread (taxable equivalent basis)        2.49%     2.48%
    Net interest margin (taxable equivalent basis)         2.79%     2.74%
    
    Allowance for Loan Losses
    -------------------------
    Balance at beginning of period                    $  16,771 $  15,914
    Provision charged to earnings                         1,200       610
    Reclassification of allowance on off-balance sheet
     exposures                                             (250)        -
    Loan recoveries, net of charge-offs                     197       247
                                                       --------- ---------
    
    Balance at end of period                          $  17,918 $  16,771
                                                       ========= =========
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                               FINANCIAL SUMMARY
    
    
    (Dollars and shares in thousands,     Dec. 31,    Sep. 30,    Dec. 31,
     except per share amounts)              2005        2005        2004
                                        ----------  ----------  ----------
    
    Period-End Balance Sheet
    ------------------------
    Assets                             $2,402,003  $2,403,161  $2,307,820
    Total securities                      783,941     782,207     890,058
    Loans:
           Commercial and other:
             Mortgages                    291,292     285,450     266,670
             Construction and
              development                  37,190      33,862      29,263
             Other                        226,252     235,457     211,778
           Total commercial and other     554,734     554,769     507,711
    
           Residential real estate:
             Mortgages                    565,680     568,675     494,720
             Homeowner construction        17,028      16,302      18,975
           Total residential real
            estate                        582,708     584,977     513,695
    
           Consumer:
             Home equity lines            161,100     163,727     155,001
             Other                        103,366      92,639      73,269
           Total consumer                 264,466     256,366     228,270
    
           Total loans                  1,401,908   1,396,112   1,249,676
    
    Deposits:
           Demand deposits                196,102     216,061     189,588
           NOW accounts                   178,677     186,615     174,727
           Money market accounts          223,255     219,982     196,775
           Savings accounts               212,499     227,834     251,920
           Time deposits                  828,725     759,746     644,875
    
           Total deposits               1,639,258   1,610,238   1,457,885
    
    Brokered deposits included in time
     deposits                             200,115     172,598     169,587
    Federal Home Loan Bank advances       545,323     577,936     672,748
    Shareholders' equity                  158,446     157,251     151,852
    
    Capital Ratios
    --------------
    Tier 1 risk-based capital                9.06%       8.82%       9.15%
    Total risk-based capital                10.51%      10.31%      10.72%
    Tier 1 leverage ratio                    5.45%       5.32%       5.35%
    
    Share Information
    -----------------
    Shares outstanding at end of
     period                              13,361.8    13,347.0    13,269.4
    Book value per share               $    11.86  $    11.78  $    11.44
    Tangible book value per share      $     7.79  $     7.68  $     9.64
    Market value per share             $    26.18  $    27.19  $    29.31
    
    Credit Quality
    --------------
    Nonaccrual loans                   $    2,414  $    1,873  $    4,731
    Other real estate owned, net                -           -           4
    Nonperforming assets to total
     assets                                  0.10%       0.08%       0.21%
    Nonaccrual loans to total loans          0.17%       0.13%       0.38%
    Allowance for loan losses to
     nonaccrual loans                      742.25%     940.42%     354.49%
    Allowance for loan losses to total
     loans                                   1.28%       1.26%       1.34%
    
    Assets Under Administration
    ---------------------------
    Market value                       $3,271,756  $3,219,011  $1,870,510
    
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                     CONSOLIDATED CONDENSED BALANCE SHEETS
    
                                                 (Unaudited)
    (Dollars in thousands)                       December 31, December 31,
                                                     2005         2004
                                                  ------------------------
    
    Assets:
    Cash and due from banks                      $    48,997  $    34,801
    Federal funds sold and other short-term
     investments                                      17,166       17,280
    Mortgage loans held for sale                         439        1,095
    Securities:
     Available for sale, at fair value; amortized
      cost $620,638 in 2005 and $724,209 in 2004     619,234      735,666
     Held to maturity, at cost; fair value
      $162,756 in 2005 and $156,270 in 2004          164,707      154,392
                                                  ------------------------
    
     Total securities                                783,941      890,058
    
    Federal Home Loan Bank stock, at cost             34,966       34,373
    
    Loans:
      Commercial and other                           554,734      507,711
      Residential real estate                        582,708      513,695
      Consumer                                       264,466      228,270
                                                  ------------------------
    
      Total loans                                  1,401,908    1,249,676
     Less allowance for loan losses                   17,918       16,771
                                                  ------------------------
    
     Net loans                                     1,383,990    1,232,905
    
    Premises and equipment, net                       23,737       24,248
    Accrued interest receivable                       10,594        9,367
    Investment in bank-owned life insurance           30,360       29,249
    Goodwill and identifiable intangible assets       54,372       23,900
    Other assets                                      13,441       10,544
                                                  ------------------------
    
     Total assets                                $ 2,402,003  $ 2,307,820
                                                  ========================
    
    Liabilities:
    Deposits:
     Demand deposits                             $   196,102  $   189,588
     NOW accounts                                    178,677      174,727
     Money market accounts                           223,255      196,775
     Savings accounts                                212,499      251,920
     Time deposits                                   828,725      644,875
                                                  ------------------------
    
     Total deposits                                1,639,258    1,457,885
    
    Dividends payable                                  2,408        2,257
    Federal Home Loan Bank advances                  545,323      672,748
    Junior subordinated debentures                    22,681            -
    Other borrowings                                   9,774        3,417
    Accrued expenses and other liabilities            24,113       19,661
                                                  ------------------------
    
     Total liabilities                             2,243,557    2,155,968
                                                  ------------------------
    
    Shareholders' Equity:
    Common stock of $.0625 par value; authorized
     30 million shares; issued 13,372,295
     shares in 2005 and 13,278,685 in 2004               836          830
    Paid-in capital                                   33,676       31,718
    Retained earnings                                126,735      113,314
    Unearned stock-based compensation                   (898)        (737)
    Accumulated other comprehensive (loss) income     (1,653)       6,937
    Treasury stock, at cost; 10,519 shares in
     2005 and 9,309 in 2004                             (250)        (210)
                                                  ------------------------
    
     Total shareholders' equity                      158,446      151,852
                                                  ------------------------
    
     Total liabilities and shareholders' equity  $ 2,402,003  $ 2,307,820
                                                  ========================
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                       CONSOLIDATED STATEMENTS OF INCOME
    
    (Dollars and shares in
     thousands, except per share
     amounts)                                    (Unaudited)
                                       Three Months       Twelve Months
    Periods ended December 31,       2005       2004     2005       2004
                                   ---------------------------------------
    Interest income:
     Interest and fees on loans   $  21,592 $  17,138 $  78,931 $  60,828
     Interest on securities           8,406     8,683    33,820    33,787
     Dividends on corporate stock
      and Federal Home Loan Bank
      stock                             653       563     2,491     2,105
     Interest on federal funds
      sold and other short-term
      investments                       130        46       451       133
                                   ---------------------------------------
    
     Total interest income           30,781    26,430   115,693    96,853
                                   ---------------------------------------
    
    Interest expense:
     Deposits                         9,386     6,490    32,186    22,197
     Federal Home Loan Bank
      advances                        5,273     5,538    22,233    20,153
     Junior subordinated
      debentures                        334         -       458         -
     Other                               85        18       160        62
                                   ---------------------------------------
    
     Total interest expense          15,078    12,046    55,037    42,412
                                   ---------------------------------------
    
    Net interest income              15,703    14,384    60,656    54,441
    Provision for loan losses           300       250     1,200       610
                                   ---------------------------------------
    
    Net interest income after
     provision for loan losses       15,403    14,134    59,456    53,831
                                   ---------------------------------------
    
    Noninterest income:
     Wealth management and trust
      services                        5,649     3,455    16,421    13,048
     Service charges on deposit
      accounts                        1,165     1,055     4,502     4,483
     Merchant processing fees         1,156       924     5,203     4,259
     Net gains on loan sales            359       644     1,679     1,901
     Net realized gains on
      securities                        337       387       357       248
     Income from bank-owned life
      insurance                         277       288     1,110     1,175
     Other income                       556       221     1,674     1,791
                                   ---------------------------------------
    
     Total noninterest income         9,499     6,974    30,946    26,905
                                   ---------------------------------------
    
    Noninterest expense:
     Salaries and employee
      benefits                        9,030     7,182    32,133    28,816
     Net occupancy                      977       819     3,460     3,201
     Equipment                          873       872     3,456     3,267
     Merchant processing costs          962       788     4,319     3,534
     Advertising and promotion          481       315     1,977     1,748
     Outsourced services                460       416     1,723     1,616
     Legal, audit and professional
      fees                              475       653     1,900     1,535
     Amortization of intangibles        410       161       852       644
     Other                            2,098     1,888     6,573     6,012
                                   ---------------------------------------
    
     Total noninterest expense       15,766    13,094    56,393    50,373
                                   ---------------------------------------
    
    Income before income taxes        9,136     8,014    34,009    30,363
    Income tax expense                2,983     2,516    10,985     9,534
                                   ---------------------------------------
    
     Net income                   $   6,153 $   5,498 $  23,024 $  20,829
                                   =======================================
    
    Weighted average shares
     outstanding - basic           13,362.9  13,259.7  13,319.7  13,227.8
    Weighted average shares
     outstanding - diluted         13,670.1  13,605.1  13,631.2  13,542.7
    Per share information:
     Basic earnings per share     $    0.46 $    0.41 $    1.73 $    1.57
     Diluted earnings per share   $    0.45 $    0.40 $    1.69 $    1.54
     Cash dividends declared per
      share                       $    0.18 $    0.17 $    0.72 $    0.68
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                      CONSOLIDATED AVERAGE BALANCE SHEETS
    
                                           (Unaudited)
    Three months ended
     December 31,                 2005                     2004
                         -------------------------------------------------
    
    (Dollars in           Average          Yield/  Average          Yield/
     thousands)           Balance  Interest Rate   Balance  Interest Rate
                         -------------------------------------------------
    
    Assets:
    Residential real
     estate loans       $  586,775 $ 7,391  5.00%$  513,133 $ 6,359  4.93%
    Commercial and other
     loans                 555,746  10,212  7.29%   498,236   8,140  6.50%
    Consumer loans         261,424   4,039  6.13%   222,321   2,678  4.79%
                         -------------------------------------------------
     Total loans         1,403,945  21,642  6.12% 1,233,690  17,177  5.54%
    Federal funds sold
     and other
     short-term
     investments            13,444     130  3.86%    11,022      46  1.70%
    Taxable debt
     securities            736,309   8,131  4.38%   845,307   8,499  4.00%
    Nontaxable debt
     securities             29,235     423  5.75%    18,937     284  5.96%
    Corporate stocks and
     FHLB stock             48,914     738  5.98%    52,397     661  5.02%
                         -------------------------------------------------
     Total securities      827,902   9,422  4.52%   927,663   9,490  4.07%
                         -------------------------------------------------
     Total interest-
      earning assets     2,231,847  31,065  5.52% 2,161,353  26,667  4.91%
    Non interest-earning
     assets                153,043                  130,382
                         -------------------------------------------------
     Total assets       $2,384,890               $2,291,735
                         =================================================
    Liabilities and
     Shareholders'
     Equity:
    NOW accounts        $  175,235 $    64  0.15%$  172,811 $    83  0.19%
    Money market
     accounts              228,173   1,485  2.58%   208,203     847  1.62%
    Savings deposits       218,043     312  0.57%   255,647     394  0.61%
    Time deposits          800,668   7,524  3.73%   628,030   5,167  3.27%
    FHLB advances          549,888   5,274  3.80%   653,746   5,538  3.37%
    Junior subordinated
     debentures             22,681     334  5.85%         -       -     -%
    Other                    7,346      85  4.59%     2,024      17  3.41%
                         -------------------------------------------------
     Total interest-
      bearing
      liabilities        2,002,034  15,078  2.99% 1,920,461  12,046  2.50%
    Demand deposits        202,570                  203,162
    Other liabilities       22,857                   16,821
    Shareholders' equity   157,429                  151,291
                         -------------------------------------------------
      Total liabilities
       and shareholders'
       equity           $2,384,890               $2,291,735
                         =================================================
     Net interest income
      (FTE)                        $15,987                  $14,621
                         =================================================
    Interest rate spread                    2.53%                    2.41%
    Net interest margin                     2.84%                    2.69%
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                      CONSOLIDATED AVERAGE BALANCE SHEETS
    
                                           (Unaudited)
    Twelve months ended
     December 31,                 2005                     2004
                        --------------------------------------------------
    
    (Dollars in          Average           Yield/  Average          Yield/
     thousands)          Balance  Interest  Rate   Balance  Interest Rate
                       ---------------------------------------------------
    
    Assets:
    Residential real
     estate loans      $  562,838 $ 27,890  4.96%$  450,898 $22,737  5.04%
    Commercial and
     other loans          531,434   37,244  7.01%   454,251  29,266  6.44%
    Consumer loans        246,959   13,983  5.66%   198,857   8,984  4.52%
                        --------------------------------------------------
       Total loans      1,341,231   79,117  5.90% 1,104,006  60,987  5.52%
    Federal funds sold
     and other
     short-term
     investments           14,703      451  3.07%    12,371     133  1.08%
    Taxable debt
     securities           783,662   32,934  4.20%   835,091  33,125  3.97%
    Nontaxable debt
     securities            23,329    1,362  5.84%    16,430   1,018  6.20%
    Corporate stocks
     and FHLB stock        50,763    2,858  5.63%    54,706   2,543  4.65%
                        --------------------------------------------------
     Total securities     872,457   37,605  4.31%   918,598  36,819  4.01%
                        --------------------------------------------------
     Total interest-
      earning assets    2,213,688  116,722  5.27% 2,022,604  97,806  4.84%
    Non interest-
     earning assets       137,460                   126,302
                        --------------------------------------------------
     Total assets      $2,351,148                $2,148,906
                        ==================================================
    Liabilities and
     Shareholders'
     Equity:
    NOW accounts       $  176,706 $    295  0.17%$  162,714 $   341  0.21%
    Money market
     accounts             203,799    4,386  2.15%   152,664   2,205  1.44%
    Savings deposits      234,311    1,392  0.59%   257,274   1,581  0.61%
    Time deposits         741,456   26,113  3.52%   575,877  18,070  3.14%
    FHLB advances         611,177   22,233  3.64%   644,520  20,153  3.13%
    Junior subordinated
     debentures             7,767      458  5.90%         -       -     -%
    Other                   3,581      160  4.48%     2,014      62  3.10%
                        --------------------------------------------------
     Total interest-
      bearing
      liabilities       1,978,797   55,037  2.78% 1,795,063  42,412  2.36%
    Demand deposits       197,245                   193,905
    Other liabilities      19,498                    15,281
    Shareholders'
     equity               155,608                   144,657
                        --------------------------------------------------
      Total liabilities
       and shareholders'
       equity          $2,351,148                $2,148,906
                        ==================================================
     Net interest
      income (FTE)                $ 61,685                  $55,394
                        ==================================================
    Interest rate
     spread                                2.49%                    2.48%
    Net interest margin                    2.79%                    2.74%
    
    
        CONTACT: Washington Trust Bancorp, Inc.Elizabeth B. Eckel, 401-348-1309
                 Senior Vice President, Marketing
                 ebeckel@washtrust.com
    
        SOURCE: Washington Trust Bancorp, Inc.