• Washington Trust Bancorp, Inc.
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  • Washington Trust Second Quarter Earnings Up 9.5%
    Company Release - 07/24/2006 08:30

    WESTERLY, R.I.--(BUSINESS WIRE)--July 24, 2006--

    Washington Trust Bancorp, Inc. (NASDAQ Global Market; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2006 net income of $6.2 million, up 9.5 percent from the $5.6 million reported for the second quarter of 2005. On a diluted earnings per share basis, the Corporation earned 45 cents for the second quarter of 2006, up 4 cents, or 9.8 percent, from the 41 cents earned for the same quarter in 2005. The returns on average equity and average assets for the quarter ended June 30, 2006 were 15.28% and 1.02%, respectively, compared to 14.58% and 0.97%, respectively, for the comparable quarter in 2005.

    "We're pleased with our second quarter performance in light of an extremely challenging interest rate environment," stated John F. Treanor, Washington Trust President and Chief Operating Officer.

    Net income for the six months ended June 30, 2006 amounted to $12.3 million, an increase of 10.9 percent from the $11.0 million reported for the same period a year ago. On a diluted earnings per share basis, the Corporation earned 89 cents for the first half of 2006, up 8 cents from the 81 cents reported for the first half of 2005. The returns on average equity and average assets for the six months ended June 30, 2006 were 15.19% and 1.02%, respectively, compared to 14.39% and 0.95%, respectively, for the comparable period in 2005.

    Net interest income totaled $15.2 million for the second quarter of 2006, up 1.6 percent from the second quarter a year ago. In the second quarter of 2006, no dividend income was recognized nor included in net interest income on the Corporation's investment in Federal Home Loan Bank of Boston ("FHLB") stock due to a timing change made by the FHLB in its dividend payment schedule. The Corporation estimates that it would have otherwise recorded approximately $450 thousand of FHLB stock dividend income in the second quarter. The FHLB has indicated that it intends to pay dividends during the third quarter with a catch-up for the delayed dividend, although the amount of such dividends has not yet been announced.

    The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the second quarter of 2006 amounted to 2.75%, down 9 basis points from the first quarter of 2006. The decline in the net interest margin on a linked quarter basis was largely due to the FHLB dividend schedule change, which was approximately 8 basis points. The continuing rise in short-term interest rates in the first half of 2006, combined with the shift in the deposit mix has also affected the margin.

    Excluding net realized gains on securities, noninterest income amounted to $10.7 million in the second quarter of 2006, an increase of 53 percent from the same quarter of 2005. This increase is primarily attributable to higher revenues from wealth management and trust services, mainly due to the acquisition of Weston Financial Group, Inc. ("Weston Financial") in the third quarter of 2005.

    Wealth management and trust services, the largest component of noninterest income, totaled $6.2 million for the second quarter of 2006, up $2.7 million, or 77 percent, from the second quarter of 2005. As previously stated, this increase was primarily attributable to the acquisition of Weston Financial completed on August 31, 2005. 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 $3.425 billion at June 30, 2006, up $153 million, or 5 percent, from $3.272 billion at December 31, 2005. The increase is due to business development efforts and, to a lesser extent, financial market appreciation.

    In the second quarter of 2006, Washington Trust recognized $765 thousand of net realized gains on sales of securities, primarily equity securities. Approximately $381 thousand of the gains resulted from the Corporation's annual contribution of appreciated equity securities to the Corporation's charitable foundation. The cost of the annual contribution, which was included in noninterest expenses, amounted to $513 thousand for the second quarter of 2006. Washington Trust made its 2005 annual contribution to the charitable foundation in the fourth quarter of 2005. The remainder of the net realized gains recognized in the second quarter of 2006 resulted primarily from the market sale of appreciated equity securities.

    Noninterest expenses amounted to $17.3 million for the quarter ended June 30, 2006 an increase of $3.9 million, or 29 percent, over the comparable quarter a year ago. Approximately $2.1 million, or 54 percent, of this increase was attributable to the operating expenses of Weston Financial.

    Total assets were $2.432 billion at June 30, 2006, up from $2.402 billion at December 31, 2005. Loan growth was modest in the first half of 2006, with total loans increasing by $29.4 million, or 2.1 percent. Total commercial and commercial real estate loans rose by $10.9 million, or 2.0 percent. Residential mortgages increased by $6.5 million, or 1.1 percent, in the first six months of 2006. Consumer loans rose by $12.0 million, or 4.6 percent, led by growth in home equity loans. The securities portfolio was little changed, up $2.3 million during the six months ended June 30, 2006.

    Total deposits totaled $1.671 billion at June 30, 2006, up $31.5 million, or 1.9 percent, from December 31, 2005. Excluding a $16.0 million increase in brokered certificates of deposit, in-market deposits were up $15.5 million, or 1.1 percent, during the first six months of 2006. Due to increases in short-term interest rates, the Corporation has continued to experience a shift in the mix of deposits away from savings accounts and into premium money market accounts and certificates of deposit. FHLB advances decreased by $1.7 million during the first half of 2006.

    Asset quality, as measured by the level of nonperforming assets, remained strong during the first half of 2006. Nonperforming assets (nonaccrual loans and property acquired through foreclosure) totaled $2.4 million, or 0.10% of total assets, at June 30, 2006, essentially unchanged from a year ago. Net charge-offs amounted to $38 thousand in the first half of 2006, compared to net loan recoveries of $71 thousand for the same period a year ago.

    The allowance for loan losses was $18.5 million, or 1.29% of total loans, at June 30, 2006, compared to $17.4 million, or 1.30% of total loans, at June 30, 2005. The Corporation's loan loss provision charged to earnings amounted to $300 and $600 thousand, respectively, for the three and six months ended June 30, 2006, consistent with the amounts recorded in 2005.

    Total shareholders' equity amounted to $161.3 million at June 30, 2006, compared to $158.4 million at December 31, 2005. Book value per share as of June 30, 2006 and December 31, 2005 amounted to $12.01 and $11.86, respectively.

    Washington Trust President and Chief Operating Officer John F. Treanor, and David V. Devault, Executive Vice President, Secretary, Treasurer, and Chief Financial Officer, will host a conference call on Monday, July 24, at 4:30 p.m. (Eastern Time) to discuss the Corporation's second quarter results. This call is being webcast by VCall and can be accessed through the Investor Relations section of the Washington Trust website, www.washtrust.com. A replay of the call will be posted in this same location on the website shortly after the conclusion of the call. You may also listen to a replay by dialing (877) 660-6853, and entering Account #: 286 and Conference ID #: 207175. The replay will be available until 11:59 p.m. on July 31, 2006.

    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 Global 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 actual results, performance or achievements of the Corporation 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 wealth management and trust assets under administration, 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. The Corporation assumes no obligation to update forward-looking statements or update the reasons actual results, performance or achievements could differ materially from those provided in the forward-looking statements, except as required by law.

                Washington Trust Bancorp, Inc. and Subsidiaries
                               FINANCIAL SUMMARY
    
                                                  Three Months Ended
                                             -----------------------------
    (Dollars and shares in thousands, except  June 30,  Mar. 31,  June 30,
     per share amounts)                         2006      2006      2005
                                             --------- --------- ---------
    
    
    
    Operating Results
    -----------------
    Net interest income                      $ 15,217  $ 15,415  $ 14,972
    Provision for loan losses                     300       300       300
    Net realized gains on securities              765        59         3
    Other noninterest income                   10,682     9,461     6,991
    Noninterest expenses                       17,280    15,704    13,373
    Income tax expense                          2,907     2,858     2,654
    Net income                                  6,177     6,073     5,639
    
    Per Share
    ---------
    Basic earnings                           $   0.46  $   0.45  $   0.42
    Diluted earnings                         $   0.45  $   0.44  $   0.41
    Dividends declared                       $   0.19  $   0.19  $   0.18
    
    Weighted Average Shares Outstanding
    -----------------------------------
           Basic                             13,419.9  13,386.8  13,296.0
           Diluted                           13,703.2  13,698.6  13,592.3
    
    Key Ratios
    ----------
    Return on average assets                     1.02%     1.01%     0.97%
    Return on average equity                    15.28%    15.09%    14.58%
    Interest rate spread
     (taxable equivalent basis)                  2.43%     2.53%     2.48%
    Net interest margin
     (taxable equivalent basis)                  2.75%     2.84%     2.76%
    
    Allowance for Loan Losses
    -------------------------
    Balance at beginning of period           $ 18,247  $ 17,918  $ 17,058
    Provision charged to earnings                 300       300       300
    Net (charge-offs) recoveries                  (67)       29        84
                                             --------- --------- ---------
    Balance at end of period                 $ 18,480  $ 18,247  $ 17,442
                                             --------- --------- ---------
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                               FINANCIAL SUMMARY
    
                                                        Six Months Ended
                                                       -------------------
    
    (Dollars and shares in thousands, except            June 30,  June 30,
     per share amounts)                                   2006      2005
                                                       --------- ---------
    
    
    Operating Results
    -----------------
    Net interest income                                $ 30,632  $ 29,593
    Provision for loan losses                               600       600
    Net realized gains on securities                        824         3
    Other noninterest income                             20,143    13,070
    Noninterest expenses                                 32,984    25,817
    Income tax expense                                    5,765     5,200
    Net income                                           12,250    11,049
    
    Per Share
    ---------
    Basic earnings                                     $   0.91  $   0.83
    Diluted earnings                                   $   0.89  $   0.81
    Dividends declared                                 $   0.38  $   0.36
    
    Weighted Average Shares Outstanding
           Basic                                       13,403.4  13,289.4
           Diluted                                     13,699.6  13,602.3
    
    Key Ratios
    ----------
    Return on average assets                               1.02%     0.95%
    Return on average equity                              15.19%    14.39%
    Interest rate spread (taxable equivalent basis)        2.49%     2.49%
    Net interest margin (taxable equivalent basis)         2.79%     2.76%
    
    Allowance for Loan Losses
    -------------------------
    Balance at beginning of period                     $ 17,918  $ 16,771
    Provision charged to earnings                           600       600
    Net (charge-offs) recoveries                            (38)       71
                                                       --------- ---------
    Balance at end of period                           $ 18,480  $ 17,442
                                                       --------- ---------
    
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                               FINANCIAL SUMMARY
    
    
    (Dollars and shares in thousands,     June 30,    Dec. 31,    June 30,
     except per share amounts)              2006        2005        2005
                                       ----------- ----------- -----------
    Period-End Balance Sheet
    ------------------------
    Assets                             $2,432,277  $2,402,003  $2,339,264
    Total securities                      786,251     783,941     826,052
    Loans:
           Commercial and other:
             Mortgages                    273,186     291,292     274,330
             Construction and
              development                  33,768      37,190      32,382
             Other                        258,655     226,252     221,877
           Total commercial and other     565,609     554,734     528,589
           Residential real estate:
             Mortgages                    568,914     565,680     546,364
             Homeowner construction        20,280      17,028      20,846
           Total residential real
            estate                        589,194     582,708     567,210
           Consumer:
             Home equity lines            153,037     161,100     162,465
             Other                        123,468     103,366      86,960
           Total consumer                 276,505     264,466     249,425
           Total loans                  1,431,308   1,401,908   1,345,224
    
    Deposits:
           Demand deposits                184,227     196,102     201,509
           NOW accounts                   178,063     178,677     179,824
           Money market accounts          239,912     223,255     183,318
           Savings accounts               191,585     212,499     233,811
           Time deposits                  877,010     828,725     732,236
           Total deposits               1,670,797   1,639,258   1,530,698
    Brokered deposits included
     in time deposits                     216,138     200,115     202,754
    Federal Home Loan Bank advances       543,588     545,323     625,641
    Shareholders' equity                  161,329     158,446     156,870
    
    Capital Ratios
    --------------
    Tier 1 risk-based capital                9.41%       9.06%       9.26%
    Total risk-based capital                10.85%      10.51%      10.78%
    Tier 1 leverage ratio                    5.73%       5.45%       5.53%
    
    Share Information
    -----------------
    Shares outstanding at
     end of period                       13,429.4    13,361.8    13,307.4
    Book value per share               $    12.01  $    11.86  $    11.79
    Tangible book value per share      $     8.02  $     7.79  $    10.01
    Market value per share             $    27.72  $    26.18  $    27.67
    
    Credit Quality
    --------------
    Nonaccrual loans                   $    2,435  $    2,414  $    2,435
    Other real estate owned, net                -           -           4
    Nonperforming assets to total
     assets                                  0.10%       0.10%       0.10%
    Nonaccrual loans to total loans          0.17%       0.17%       0.18%
    Allowance for loan losses to
     nonaccrual loans                      758.93%     742.25%     716.30%
    Allowance for loan losses to total
     loans                                   1.29%       1.28%       1.30%
    
    Assets Under Administration
    ---------------------------
    Market value                       $3,424,698  $3,271,756  $1,852,925
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                          CONSOLIDATED BALANCE SHEETS
    
                                                 (Unaudited)
    (Dollars in thousands)                         June 30,   December 31,
                                                     2006         2005
                                                 ------------------------
    Assets:
    Cash and due from banks                      $   44,042   $   48,997
    Federal funds sold and other short-term
     investments                                      8,133       17,166
    Mortgage loans held for sale                      1,362          439
    Securities:
      Available for sale, at fair value;
       amortized cost $636,298 in 2006 and
       $620,638 in 2005                             625,793      619,234
      Held to maturity, at cost; fair value
       $155,484 in 2006 and $162,756 in 2005        160,458      164,707
                                                 ------------------------
      Total securities                              786,251      783,941
    Federal Home Loan Bank stock, at cost            33,915       34,966
    Loans:
      Commercial and other                          565,609      554,734
      Residential real estate                       589,194      582,708
      Consumer                                      276,505      264,466
                                                 ------------------------
      Total loans                                 1,431,308    1,401,908
      Less allowance for loan losses                 18,480       17,918
                                                 ------------------------
      Net loans                                   1,412,828    1,383,990
    Premises and equipment, net                      24,261       23,737
    Accrued interest receivable                      10,749       10,594
    Investment in bank-owned life insurance          38,985       30,360
    Goodwill                                         39,963       39,963
    Identifiable intangible assets                   13,598       14,409
    Other assets                                     18,190       13,441
                                                 ------------------------
     Total assets                                $2,432,277   $2,402,003
                                                 ------------------------
    
    Liabilities:
    Deposits:
      Demand deposits                            $  184,227   $  196,102
      NOW accounts                                  178,063      178,677
      Money market accounts                         239,912      223,255
      Savings accounts                              191,585      212,499
      Time deposits                                 877,010      828,725
                                                 ------------------------
      Total deposits                              1,670,797    1,639,258
    Dividends payable                                 2,554        2,408
    Federal Home Loan Bank advances                 543,588      545,323
    Junior subordinated debentures                   22,681       22,681
    Other borrowings                                  7,173        9,774
    Accrued expenses and other liabilities           24,155       24,113
                                                 ------------------------
      Total liabilities                           2,270,948    2,243,557
                                                 ------------------------
    
    Shareholders' Equity:
    Common stock of $.0625 par value; authorized
     30,000,000 shares;
     issued 13,443,046 shares in 2006 and
     13,372,295 in 2005                                 840          836
    Paid-in capital                                  34,516       32,778
    Retained earnings                               133,880      126,735
    Accumulated other comprehensive (loss)
     income                                          (7,566)      (1,653)
    Treasury stock, at cost; 13,677 shares in
     2006 and 10,519 in 2005                           (341)        (250)
                                                 ------------------------
      Total shareholders' equity                    161,329      158,446
                                                 ------------------------
      Total liabilities and shareholders' equity $2,432,277   $2,402,003
                                                 ------------------------
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                       CONSOLIDATED STATEMENTS OF INCOME
    
    (Dollars and shares in
     thousands, except per
     share amounts)                           (Unaudited)
                                    Three Months           Six Months
    Periods ended June 30,        2006       2005        2006       2005
                              --------------------------------------------
    Interest income:
      Interest and fees on
       loans                  $  23,130  $  19,096   $  45,027  $  36,921
      Interest on securities
        Taxable                   8,648      8,285      17,060     16,719
        Nontaxable                  371        204         699        389
      Dividends on corporate
       stock and Federal Home
       Loan Bank stock              249        625         926      1,244
      Interest on federal
       funds sold and other
       short-term investments       150         79         265        134
                              --------------------------------------------
      Total interest income      32,548     28,289      63,977     55,407
                              --------------------------------------------
    Interest expense:
      Deposits                   11,161      7,627      21,399     14,559
      Federal Home Loan Bank
       advances                   5,745      5,670      11,104     11,219
      Junior subordinated
       debentures                   338          -         676          -
      Other                          87         20         166         36
                              --------------------------------------------
      Total interest expense     17,331     13,317      33,345     25,814
                              --------------------------------------------
    Net interest income          15,217     14,972      30,632     29,593
    Provision for loan losses       300        300         600        600
                              --------------------------------------------
    Net interest income after
     provision for loan
     losses                      14,917     14,672      30,032     28,993
                              --------------------------------------------
    Noninterest income:
      Wealth management and
       trust services             6,177      3,486      12,059      6,698
      Service charges on
       deposit accounts           1,236      1,168       2,355      2,179
      Merchant processing
       fees                       1,656      1,337       2,703      2,115
      Income from bank-owned
       life insurance               346        279         625        551
      Net gains on loan sales       336        418         612        905
      Net realized gains on
       securities                   765          3         824          3
      Other income                  931        303       1,789        622
                              --------------------------------------------
      Total noninterest
       income                    11,447      6,994      20,967     13,073
                              --------------------------------------------
    Noninterest expense:
      Salaries and employee
       benefits                   9,830      7,450      19,449     14,909
      Net occupancy               1,018        802       1,972      1,655
      Equipment                     881        869       1,680      1,751
      Merchant processing
       costs                      1,407      1,098       2,294      1,734
      Advertising and
       promotion                    681        733       1,118      1,036
      Outsourced services           496        444       1,014        857
      Legal, audit and
       professional fees            403        520         779        912
      Amortization of
       intangibles                  406         99         811        246
      Other                       2,158      1,358       3,867      2,717
                              --------------------------------------------
      Total noninterest
       expense                   17,280     13,373      32,984     25,817
                              --------------------------------------------
    Income before income
     taxes                        9,084      8,293      18,015     16,249
    Income tax expense            2,907      2,654       5,765      5,200
                              --------------------------------------------
      Net income              $   6,177  $   5,639   $  12,250  $  11,049
                              --------------------------------------------
    
    Weighted average shares
     outstanding - basic       13,419.9   13,296.0    13,403.4   13,289.4
    Weighted average shares
     outstanding - diluted     13,703.2   13,592.3    13,699.6   13,602.3
    Per share information:
      Basic earnings per
       share                  $    0.46  $    0.42   $    0.91  $    0.83
      Diluted earnings per
       share                  $    0.45  $    0.41   $    0.89  $    0.81
      Cash dividends declared
       per share              $    0.19  $    0.18   $    0.38  $    0.36
    
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                      CONSOLIDATED AVERAGE BALANCE SHEETS
    
                                          (Unaudited)
    Three months ended
     June 30,                      2006                      2005
                       ---------------------------------------------------
                         Average          Yield/   Average          Yield/
    (Dollars in          Balance Interest  Rate    Balance Interest  Rate
     thousands)       ----------------------------------------------------
    
    Assets:
    Residential real
     estate loans     $  590,595 $ 7,505  5.10% $  558,645 $ 6,889  4.95%
    Commercial and
     other loans         568,937  11,049  7.79%    518,025   8,922  6.91%
    Consumer loans       272,819   4,633  6.81%    243,756   3,329  5.48%
                      ----------------------------------------------------
      Total loans      1,432,351  23,187  6.49%  1,320,426  19,140  5.81%
    Federal funds sold
     and other
     short-term
     investments          12,827     150  4.69%     12,018      79  2.64%
    Taxable debt
     securities          737,987   8,648  4.70%    804,232   8,285  4.13%
    Nontaxable debt
     securities           39,659     570  5.76%     21,369     315  5.91%
    Corporate stocks
     and FHLB stock       51,128     343  2.69%     51,511     720  5.61%
                      ----------------------------------------------------
      Total securities   841,601   9,711  4.63%    889,130   9,399  4.24%
                      ----------------------------------------------------
      Total interest-
       earning assets  2,273,952  32,898  5.80%  2,209,556  28,539  5.18%
    Non interest-
     earning assets      154,648                   127,417
                      ----------------------------------------------------
     Total assets     $2,428,600                $2,336,973
                      ----------------------------------------------------
    Liabilities and
     Shareholders'
     Equity:
    NOW accounts      $  177,260 $    80  0.18% $  180,103 $    77  0.17%
    Money market
     accounts            233,489   1,835  3.15%    186,957     919  1.97%
    Savings deposits     195,251     274  0.56%    241,594     372  0.62%
    Time deposits        871,519   8,972  4.13%    733,927   6,259  3.42%
    FHLB advances        554,639   5,745  4.15%    631,390   5,670  3.60%
    Junior
     subordinated
     debentures           22,681     338  5.98%          -       -     -%
    Other                  7,346      87  4.75%      1,891      20  4.12%
                      ----------------------------------------------------
      Total interest-
       bearing
       liabilities     2,062,185  17,331  3.37%  1,975,862  13,317  2.70%
    Demand deposits      182,546                   189,465
    Other liabilities     22,184                    16,983
    Shareholders'
     equity              161,685                   154,663
                      ----------------------------------------------------
       Total
        liabilities
        and
        shareholders'
        equity        $2,428,600                $2,336,973
                      ----------------------------------------------------
     Net interest
      income (FTE)               $15,567                   $15,222
                      ----------------------------------------------------
    Interest rate
     spread                               2.43%                     2.48%
    Net interest
     margin                               2.75%                     2.76%
    
    
    
                Washington Trust Bancorp, Inc. and Subsidiaries
                      CONSOLIDATED AVERAGE BALANCE SHEETS
    
                                          (Unaudited)
    Six months ended
     June 30,                      2006                      2005
                       ---------------------------------------------------
                         Average          Yield/  Average           Yield/
    (Dollars in          Balance Interest  Rate   Balance  Interest  Rate
     thousands)       ----------------------------------------------------
    Assets:
    Residential real
     estate loans     $  590,217 $14,909  5.09% $  544,822 $13,394  4.96%
    Commercial and
     other loans         562,511  21,303  7.64%    515,158  17,348  6.79%
    Consumer loans       269,960   8,922  6.66%    237,278   6,268  5.33%
                      ----------------------------------------------------
      Total loans      1,422,688  45,134  6.40%  1,297,258  37,010  5.75%
    Federal funds sold
     and other
     short-term
     investments          11,510     265  4.64%     11,349     134  2.38%
    Taxable debt
     securities          737,776  17,060  4.66%    817,412  16,719  4.12%
    Nontaxable debt
     securities           37,430   1,074  5.79%     20,256     599  5.96%
    Corporate stocks
     and FHLB stock       50,241   1,104  4.43%     52,178   1,443  5.58%
                      ----------------------------------------------------
      Total securities   836,957  19,503  4.70%    901,195  18,895  4.23%
                      ----------------------------------------------------
      Total interest-
       earning assets  2,259,645  64,637  5.77%  2,198,453  55,905  5.13%
    Non interest-
     earning assets      152,019                   126,801
                      ----------------------------------------------------
     Total assets     $2,411,664                 $2,325,254
                      ----------------------------------------------------
    Liabilities and
     Shareholders'
     Equity:
    NOW accounts      $  173,859 $   147  0.17% $  175,630 $   155  0.18%
    Money market
     accounts            230,911   3,442  3.01%    191,740   1,760  1.85%
    Savings deposits     199,984     561  0.57%    245,256     748  0.62%
    Time deposits        861,464  17,249  4.04%    711,527  11,896  3.37%
    FHLB advances        551,035  11,104  4.06%    643,410  11,219  3.52%
    Junior
     subordinated
     debentures           22,681     676  6.01%          -       -     -%
    Other                  7,183     166  4.67%      1,700      36  4.17%
                      ----------------------------------------------------
      Total interest-
       bearing
       liabilities     2,047,117  33,345  3.28%  1,969,263  25,814  2.64%
    Demand deposits      181,257                   185,893
    Other liabilities     21,972                    16,550
    Shareholders'
     equity              161,318                   153,548
                      ----------------------------------------------------
      Total
       liabilities and
       shareholders'
       equity         $2,411,664                $2,325,254
                      ----------------------------------------------------
      Net interest
       income (FTE)              $31,292                   $30,091
                      ----------------------------------------------------
    Interest rate
     spread                               2.49%                    2.49%
    Net interest
     margin                               2.79%                    2.76%
    

    Source: Washington Trust Bancorp, Inc.