• Washington Trust Bancorp, Inc.
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  • Washington Trust Announces Quarterly Earnings Increase
    Company Release - 07/23/2007 08:49

    WESTERLY, R.I.--(BUSINESS WIRE)--

    Washington Trust Bancorp, Inc. (NASDAQ Global Market; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2007 net income of $6.3 million, or 46 cents per diluted share. Net income for the second quarter of last year totaled $6.2 million, or 45 cents per diluted share. The returns on average equity and average assets for the quarter ended June 30, 2007 were 14.37% and 1.06%, respectively, compared to 15.28% and 1.02%, respectively, for the same period in 2006.

    "We're pleased to report increased earnings for the second quarter 2007", stated John C. Warren, Washington Trust Chairman and Chief Executive Officer. "We had solid growth in both our Wealth Management and Commercial Lending areas and our asset quality remains strong." Warren added, "Our performance is particularly noteworthy taking into consideration a slow growth economy and an unfavorable interest rate environment."

    Net income for the six months ended June 30, 2007 amounted to $12.3 million, or 90 cents per diluted share, compared to the $12.3 million, or 89 cents per diluted share, reported for the same period a year ago. The returns on average equity and average assets for the first half of 2007 were 14.01% and 1.03%, respectively, compared to 15.19% and 1.02%, respectively, for the comparable period in 2006.

    Net interest income totaled $14.8 million for the second quarter of 2007, essentially flat compared to the first quarter of 2007 and down $371 thousand, or 2.4 percent, from the second quarter a year ago. The net interest margin for the second quarter 2007 was 2.75%, down 6 basis points from the first quarter and unchanged from the second quarter of 2006. The decline in net interest margin from the first quarter was primarily attributable to an additional $322 thousand interest recovery received in the first quarter on a previously charged off loan, which accounted for 6 basis points of first quarter net interest margin. While the net interest margin was unchanged from the second quarter of 2006, no dividend income was recognized nor included in net interest income in that quarter on the Corporation's investment in Federal Home Loan Bank of Boston ("FHLBB") stock due to a timing change in the FHLBB dividend payment schedule. FHLBB dividend income recognized in the second quarter of 2007 represented approximately 9 basis points of the net interest margin.

    Total noninterest income amounted to $12.5 million for the second quarter of 2007, up $1.1 million from the same quarter a year ago. On a year to date basis, noninterest income increased $2.8 million, or 13 percent, from 2006. This increase was largely attributable to higher revenues from wealth management services. Wealth management revenues for the second quarter of 2007 were up $756 thousand, or 11 percent, from the second quarter of 2006. For the first six months of 2007, wealth management revenues increased $1.2 million, or 9 percent, from the same period in 2006. Wealth management assets under administration totaled $3.948 billion at June 30, 2007, up $142 million, or 4 percent, in the second quarter of 2007 and up $254 million, or 7 percent, from December 31, 2006. This growth was due to financial market appreciation and business development efforts.

    Included in noninterest income were net realized gains on sales of securities of $705 thousand and $765 thousand for the three months ended June 30, 2007 and 2006, respectively. These amounts included $397 thousand and $381 thousand of gains recognized in the second quarter of 2007 and 2006, respectively, resulting from the Corporation's annual contribution of appreciated equity securities to the Corporation's charitable foundation in 2007 and 2006, respectively. The cost of the annual contributions, which was included in noninterest expenses, amounted to $520 thousand and $513 thousand for the second quarter of 2007 and 2006, respectively. The remainder of net realized securities gains recognized in the second quarter of 2007 included $195 thousand attributable to certain debt and equity securities that were called prior to maturity by the issuers and $113 thousand of net realized gains on the sale of debt and equity securities. As previously disclosed, net realized gains on sales of securities totaling $1.0 million were recognized in the first quarter of 2007.

    Noninterest expenses amounted to $17.9 million for the second quarter of 2007, up $595 thousand, or 3 percent, from the same quarter a year ago. For the six months ended June 30, 2007, noninterest expenses totaled $35.0 million, up $2.0 million, or 6 percent, from the same period in 2006. During the first quarter of 2007, the Corporation prepaid $26.5 million in higher cost advances from the FHLBB, resulting in a debt prepayment penalty charge, recorded in noninterest expense, of $1.1 million. Excluding debt prepayment penalty expense, noninterest expenses increased $933 thousand, or 3 percent, over the same six-month period last year.

    Total assets were $2.4 billion at June 30, 2007, essentially unchanged from December 31, 2006. Loan growth amounted to $29.2 million in the first six months of 2007, including $35.6 million, or 6 percent, in commercial loan growth. Residential loans declined by $5.3 million, or 1 percent, and consumer loans have decreased by $1.1 million, or 0.4 percent, in the first half of 2007. The investment securities portfolio totaled $679.9 million at June 30, 2007, down $24.0 million from December 31, 2006.

    Total deposits decreased by $8.9 million from December 31, 2006. Excluding brokered certificates of deposit, in-market deposits were up $7.4 million, or 0.5 percent, in the first six months of 2007. Declines in demand and savings deposits were offset by increases in consumer and commercial certificates of deposit. FHLBB advances totaled $468.8 million at June 30, 2007, down $5.7 million from December 31, 2006. Other borrowings increased $12.9 million in the first six months of 2007, mainly due to an increase in securities sold under repurchase agreements, partially offset by payment in the first quarter of $6.7 million in deferred acquisition costs.

    Asset quality, as measured by the level of nonperforming assets, remained strong in the first half of 2007. Nonperforming assets totaled $3.0 million, or 0.12% of total assets, at June 30, 2007, compared to $2.4 million, or 0.10% of total assets, a year ago. There are no assets acquired through foreclosure on the balance sheet at June 30, 2007. The Corporation has never offered a sub-prime or Alt-A residential mortgage loan program and we have not experienced any recent significant deterioration of asset quality as measured by delinquencies in residential and consumer loans. Total residential mortgage and consumer loan 30-day+ delinquencies amounted to $1.8 million, or 0.21% of these loans, at June 30, 2007, compared to $1.4 million, or 0.16% of these loans, at December 31, 2006.

    The allowance for loan losses was $19.3 million, or 1.30% of total loans, at June 30, 2007, compared to $18.9 million, or 1.29% of total loans, at December 31, 2006 and $18.5 million, or 1.29% of total loans, at June 30, 2006. Net charge-offs amounted to $167 thousand for the first half of 2007, compared to net charge-offs of $38 thousand for the same period a year ago. The Corporation's loan loss provision charged to earnings amounted to $300 thousand and $600 thousand, respectively, for the three and six months ended June 30, 2007, consistent with the amounts recorded in 2006.

    Total shareholders' equity amounted to $173.6 million at June 30, 2007, compared to $173.1 million at December 31, 2006. Under the Corporation's 2006 Stock Repurchase Plan, 149,700 shares were repurchased at a total cost of $3.9 million during the first six months of 2007. Book value per share as of June 30, 2007 and December 31, 2006 amounted to $13.05 and $12.89, 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 Monday, July 23, 2007 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 #: 246111. The replay will be available until 11:59 p.m. on July 31, 2007.

    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 press release 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. All statements, other than statements of historical facts, including statements regarding our strategy, effectiveness of investment programs, evaluations of future interest rate trends and liquidity, expectations as to growth in assets, deposits and results of operations, success of acquisitions, future operations, market position, financial position, and prospects, plans, goals and objectives of management are forward-looking statements. The actual results, performance or achievements of the Corporation could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in general national or regional economic conditions, changes in interest rates, reductions in the market value of wealth management 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
                                                --------------------------
                                                June 30, Mar. 31, June 30,
    (Dollars and shares in thousands, except
     per share amounts)                           2007     2007     2006
                                                -------- -------- --------
    
    Operating Results
    -------------------------------------------
    Net interest income                          $14,846  $14,870  $15,217
    Provision for loan losses                        300      300      300
    Net gains on sales of securities                 705    1,036      765
    Other noninterest income                      11,823   10,212   10,682
    Noninterest expenses                          17,875   17,109   17,280
    Income tax expense                             2,889    2,734    2,907
    Net income                                     6,310    5,975    6,177
    
    Per Share
    -------------------------------------------
    Basic earnings                                 $0.47    $0.45    $0.46
    Diluted earnings                               $0.46    $0.44    $0.45
    Dividends declared                             $0.20    $0.20    $0.19
    
    Weighted Average Shares Outstanding
    -------------------------------------------
           Basic                                13,339.6 13,412.1 13,419.9
           Diluted                              13,616.4 13,723.0 13,703.2
    
    Key Ratios
    -------------------------------------------
    Return on average assets                       1.06%    1.00%    1.02%
    Return on average equity                      14.37%   13.66%   15.28%
    Interest rate spread (taxable equivalent
     basis)                                        2.38%    2.46%    2.43%
    Net interest margin (taxable equivalent
     basis)                                        2.75%    2.81%    2.75%
    
    Allowance for Loan Losses
    -------------------------------------------
    Balance at beginning of period               $19,360  $18,894  $18,247
    Provision charged to earnings                    300      300      300
    Net recoveries (charge-offs)                   (333)      166     (67)
                                                -------- -------- --------
    Balance at end of period                     $19,327  $19,360  $18,480
                                                -------- -------- --------
    
    Washington Trust Bancorp, Inc. and Subsidiaries
                              FINANCIAL SUMMARY
    
                                                       Six Months Ended
                                                     ---------------------
                                                      June 30,   June 30,
    (Dollars and shares in thousands, except per
     share amounts)                                     2007       2006
                                                     ---------- ----------
    
    Operating Results
    ------------------------------------------------
    Net interest income                                 $29,716    $30,632
    Provision for loan losses                               600        600
    Net realized gains on securities                      1,741        824
    Other noninterest income                             22,035     20,143
    Noninterest expenses                                 34,984     32,984
    Income tax expense                                    5,623      5,765
    Net income                                           12,285     12,250
    
    Per Share
    ------------------------------------------------
    Basic earnings                                        $0.92      $0.91
    Diluted earnings                                      $0.90      $0.89
    Dividends declared                                    $0.40      $0.38
    
    Weighted Average Shares Outstanding
    ------------------------------------------------
           Basic                                       13,375.7   13,403.4
           Diluted                                     13,667.6   13,699.6
    
    Key Ratios
    ------------------------------------------------
    Return on average assets                              1.03%      1.02%
    Return on average equity                             14.01%     15.19%
    Interest rate spread (taxable equivalent basis)       2.42%      2.49%
    Net interest margin (taxable equivalent basis)        2.78%      2.79%
    
    Allowance for Loan Losses
    ------------------------------------------------
    Balance at beginning of period                      $18,894    $17,918
    Provision charged to earnings                           600        600
    Net (charge-offs) recoveries                          (167)       (38)
                                                     ---------- ----------
    Balance at end of period                            $19,327    $18,480
                                                     ---------- ----------
    
    
    
    
                                                       Three
                                                       Months   Six Months
                                                       Ended      Ended
    (Dollars and shares in thousands, except per     June 30,   June 30,
     share amounts)                                     2007       2007
                                                     ---------- ----------
    
    Wealth Management Assets Under Administration
    ------------------------------------------------
    Balance at beginning of period                   $3,806,274 $3,694,813
    Net market appreciation and income                  113,656    161,725
    Net customer cash flows                              28,460     91,852
                                                     ---------- ----------
    Balance at end of period                         $3,948,390 $3,948,390
                                                     ---------- ----------
    
    Washington Trust Bancorp, Inc. and Subsidiaries
                              FINANCIAL SUMMARY
    
    (Dollars and shares in thousands,
     except per share amounts)             June 30,   Dec. 31,   June 30,
    Period-End Balance Sheet                 2007       2006       2006
    ------------------------------------- ---------- ---------- ----------
    Assets                                $2,396,300 $2,399,165 $2,432,277
    Total securities                         679,859    703,851    786,251
    Loans:
           Commercial and other:
             Mortgages                       265,560    282,019    273,186
             Construction and development     43,755     32,233     33,768
             Other                           313,673    273,145    258,655
                                          ---------- ---------- ----------
           Total commercial and other        622,988    587,397    565,609
           Residential real estate:
             Mortgages                       572,321    577,522    568,914
             Homeowner construction           11,071     11,149     20,280
                                          ---------- ---------- ----------
           Total residential real estate     583,392    588,671    589,194
           Consumer:
             Home equity lines               139,256    145,676    153,037
             Home equity loans                97,253     93,947     84,030
             Other                            46,285     44,295     39,438
                                          ---------- ---------- ----------
           Total consumer                    282,794    283,918    276,505
                                          ---------- ---------- ----------
           Total loans                     1,489,174  1,459,986  1,431,308
    Deposits:
           Demand deposits                   177,210    186,533    184,227
           NOW accounts                      174,715    175,479    178,063
           Money market accounts             290,046    286,998    239,912
           Savings accounts                  196,105    205,998    191,585
           Time deposits                     831,013    822,989    877,010
                                          ---------- ---------- ----------
           Total deposits                  1,669,089  1,677,997  1,670,797
    Brokered deposits included in time
     deposits                                159,297    175,618    216,138
    Federal Home Loan Bank advances          468,827    474,561    543,588
    Shareholders' equity                     173,606    173,056    161,329
    
    Capital Ratios
    -------------------------------------
    Tier 1 risk-based capital                  9.46%      9.57%      9.41%
    Total risk-based capital                  10.79%     10.96%     10.85%
    Tier 1 leverage ratio                      6.20%      6.01%      5.73%
    
    Share Information
    -------------------------------------
    Shares outstanding at end of period     13,305.1   13,429.7   13,429.4
    Book value per share                      $13.05     $12.89     $12.01
    Tangible book value per share              $8.79      $8.61      $8.02
    Market value per share                    $25.21     $27.89     $27.72
    
    Credit Quality
    -------------------------------------
    Nonaccrual loans:
           Commercial:
             Mortgages                        $1,385       $981          -
             Construction and development          -          -          -
             Other                               645        831        566
           Residential real estate               698        721      1,692
           Consumer                              241        190        177
                                          ---------- ---------- ----------
           Total nonaccrual loans             $2,969     $2,723     $2,435
    Other real estate owned, net                   -          -          -
    Nonperforming assets to total assets       0.12%      0.11%      0.10%
    Nonaccrual loans to total loans            0.20%      0.19%      0.17%
    Allowance for loan losses to
     nonaccrual loans                        650.96%    693.87%    758.93%
    Allowance for loan losses to total
     loans                                     1.30%      1.29%      1.29%
    
    Assets Under Administration
    -------------------------------------
    Market value                          $3,948,390 $3,694,813 $3,424,698
    
    Washington Trust Bancorp, Inc. and Subsidiaries
                         CONSOLIDATED BALANCE SHEETS
    
    (Dollars in thousands)                            June 30,   Dec. 31,
                                                        2007       2006
    ----------------------------------------------------------------------
    Assets:
    Cash and due from banks                             $36,942    $54,337
    Federal funds sold                                   19,175     16,425
    Other short-term investments                          1,899      1,147
    Mortgage loans held for sale                          4,132      2,148
    Securities:
     Available for sale, at fair value; amortized
      cost $530,142 in 2007 and $525,966 in 2006        525,688    526,396
     Held to maturity, at cost; fair value $150,515
      in 2007 and $175,369 in 2006                      154,171    177,455
    ----------------------------------------------------------------------
     Total securities                                   679,859    703,851
    Federal Home Loan Bank stock, at cost                28,727     28,727
    Loans:
      Commercial and other                              622,988    587,397
      Residential real estate                           583,392    588,671
      Consumer                                          282,794    283,918
    ----------------------------------------------------------------------
      Total loans                                     1,489,174  1,459,986
     Less allowance for loan losses                      19,327     18,894
    ----------------------------------------------------------------------
     Net loans                                        1,469,847  1,441,092
    Premises and equipment, net                          26,293     24,307
    Accrued interest receivable                          11,145     11,268
    Investment in bank-owned life insurance              40,560     39,770
    Goodwill                                             44,558     44,558
    Identifiable intangible assets, net                  12,100     12,816
    Other assets                                         21,063     18,719
    ----------------------------------------------------------------------
     Total assets                                    $2,396,300 $2,399,165
    ----------------------------------------------------------------------
    
    Liabilities:
    Deposits:
     Demand deposits                                   $177,210   $186,533
     NOW accounts                                       174,715    175,479
     Money market accounts                              290,046    286,998
     Savings accounts                                   196,105    205,998
     Time deposits                                      831,013    822,989
    ----------------------------------------------------------------------
     Total deposits                                   1,669,089  1,677,997
    Dividends payable                                     2,667      2,556
    Federal Home Loan Bank advances                     468,827    474,561
    Junior subordinated debentures                       22,681     22,681
    Other borrowings                                     27,574     14,684
    Accrued expenses and other liabilities               31,856     33,630
    ----------------------------------------------------------------------
     Total liabilities                                2,222,694  2,226,109
    ----------------------------------------------------------------------
    
    Shareholders' Equity:
    Common stock of $.0625 par value; authorized
     30,000,000 shares;
      issued 13,492,110 shares in 2007 and 2006             843        843
    Paid-in capital                                      35,734     35,893
    Retained earnings                                   148,485    141,548
    Accumulated other comprehensive loss                (6,519)    (3,515)
    Treasury stock, at cost; 186,972 shares in 2007
     and 62,432 in 2006                                 (4,937)    (1,713)
    ----------------------------------------------------------------------
     Total shareholders' equity                         173,606    173,056
    ----------------------------------------------------------------------
     Total liabilities and shareholders' equity      $2,396,300 $2,399,165
    ----------------------------------------------------------------------
    
    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,               2007     2006     2007     2006
    ----------------------------------------------------------------------
    Interest income:
     Interest and fees on loans         $24,414  $23,130  $48,348  $45,027
     Interest on securities:
       Taxable                            7,709    8,648   15,501   17,060
       Nontaxable                           759      371    1,427      699
     Dividends on corporate stock and
      Federal Home Loan Bank stock          685      249    1,403      926
     Interest on federal funds sold
      and other short-term investments      184      150      375      265
    ----------------------------------------------------------------------
     Total interest income               33,751   32,548   67,054   63,977
    ----------------------------------------------------------------------
    Interest expense:
     Deposits                            13,215   11,161   26,192   21,399
     Federal Home Loan Bank advances      5,063    5,745   10,031   11,104
     Junior subordinated debentures         338      338      676      676
     Other                                  289       87      439      166
    ----------------------------------------------------------------------
     Total interest expense              18,905   17,331   37,338   33,345
    ----------------------------------------------------------------------
    Net interest income                  14,846   15,217   29,716   30,632
    Provision for loan losses               300      300      600      600
    ----------------------------------------------------------------------
    Net interest income after
     provision for loan losses           14,546   14,917   29,116   30,032
    ----------------------------------------------------------------------
    Noninterest income:
     Wealth management services:
       Trust and investment advisory
        fees                              5,252    4,682   10,290    9,309
       Mutual fund fees                   1,352    1,214    2,614    2,344
       Financial planning, commissions
        and other service fees              889      841    1,459    1,524
    ----------------------------------------------------------------------
         Wealth management services       7,493    6,737   14,363   13,177
     Service charges on deposit
      accounts                            1,220    1,236    2,345    2,355
     Merchant processing fees             1,829    1,656    3,033    2,703
     Income from bank-owned life
      insurance                             399      346      790      625
     Net gains on loan sales and
      commissions on loans originated
      for others                            510      336      774      612
     Net realized gains on securities       705      765    1,741      824
     Other income                           372      371      730      671
    ----------------------------------------------------------------------
     Total noninterest income            12,528   11,447   23,776   20,967
    ----------------------------------------------------------------------
    Noninterest expense:
     Salaries and employee benefits      10,285    9,830   20,097   19,449
     Net occupancy                        1,038    1,018    2,055    1,972
     Equipment                              861      881    1,693    1,680
     Merchant processing costs            1,558    1,407    2,577    2,294
     Outsourced services                    535      496    1,054    1,014
     Advertising and promotion              572      681    1,001    1,118
     Legal, audit and professional
      fees                                  404      403      854      779
     Amortization of intangibles            348      406      716      811
     Debt prepayment penalties                -        -    1,067        -
     Other                                2,274    2,158    3,870    3,867
    ----------------------------------------------------------------------
     Total noninterest expense           17,875   17,280   34,984   32,984
    ----------------------------------------------------------------------
    Income before income taxes            9,199    9,084   17,908   18,015
    Income tax expense                    2,889    2,907    5,623    5,765
    ----------------------------------------------------------------------
     Net income                          $6,310   $6,177  $12,285  $12,250
    ----------------------------------------------------------------------
    
    Weighted average shares
     outstanding - basic               13,339.6 13,419.9 13,375.7 13,403.4
    Weighted average shares
     outstanding - diluted             13,616.4 13,703.2 13,667.6 13,699.6
    Per share information:
     Basic earnings per share             $0.47    $0.46    $0.92    $0.91
     Diluted earnings per share           $0.46    $0.45    $0.90    $0.89
     Cash dividends declared per share    $0.20    $0.19    $0.40    $0.38
    
    Washington Trust Bancorp, Inc. and Subsidiaries
                     CONSOLIDATED AVERAGE BALANCE SHEETS
    
    
    Three months
     ended June 30,             2007                       2006
                      Average            Yield/  Average            Yield/
    (Dollars in
     thousands)       Balance   Interest  Rate   Balance   Interest  Rate
    ----------------------------------------------------------------------
    Assets:
    Residential real
     estate loans      $590,226   $7,812  5.31%   $590,595   $7,505  5.10%
    Commercial and
     other loans        615,606   11,730  7.64%    568,937   11,049  7.79%
    Consumer loans      282,408    4,911  6.98%    272,819    4,633  6.81%
    ----------------------------------------------------------------------
     Total loans      1,488,240   24,453  6.59%  1,432,351   23,187  6.49%
    Federal funds
     sold and
      other short-
       term
       investments       17,028      184  4.34%     12,827      150  4.69%
    Taxable debt
     securities         605,538    7,709  5.11%    737,987    8,648  4.70%
    Nontaxable debt
     securities          78,964    1,112  5.65%     39,659      570  5.76%
    Corporate stocks
     and FHLBB stock     42,806      763  7.15%     51,128      343  2.69%
    ----------------------------------------------------------------------
     Total
      securities        744,336    9,768  5.26%    841,601    9,711  4.63%
    ----------------------------------------------------------------------
     Total interest-
      earning assets  2,232,576   34,221  6.15%  2,273,952   32,898  5.80%
    Non interest-
     earning assets     159,111                    154,648
    ----------------------------------------------------------------------
     Total assets    $2,391,687                 $2,428,600
    ----------------------------------------------------------------------
    Liabilities and
     Shareholders'
     Equity:
    NOW accounts       $168,742      $64  0.15%   $177,260      $80  0.18%
    Money market
     accounts           293,245    2,869  3.92%    233,489    1,835  3.15%
    Savings accounts    196,647      661  1.35%    195,251      274  0.56%
    Time deposits       837,223    9,621  4.61%    871,519    8,972  4.13%
    FHLBB advances      467,411    5,063  4.34%    554,639    5,745  4.15%
    Junior
     subordinated
     debentures          22,681      338  5.98%     22,681      338  5.98%
    Other                25,764      289  4.51%      7,346       87  4.75%
    ----------------------------------------------------------------------
     Total interest-
      bearing
      liabilities     2,011,713   18,905  3.77%  2,062,185   17,331  3.37%
    Demand deposits     173,473                    182,546
    Other
     liabilities         30,863                     22,184
    Shareholders'
     equity             175,638                    161,685
    ----------------------------------------------------------------------
      Total
       liabilities
       and
       shareholders'
       equity        $2,391,687                 $2,428,600
    ----------------------------------------------------------------------
     Net interest
      income (FTE)               $15,316                    $15,567
    ----------------------------------------------------------------------
    Interest rate
     spread                               2.38%                      2.43%
    Net interest
     margin                               2.75%                      2.75%
    
    Washington Trust Bancorp, Inc. and Subsidiaries
                     CONSOLIDATED AVERAGE BALANCE SHEETS
    
    
    Six months ended
     June 30,                   2007                       2006
                      Average            Yield/  Average            Yield/
    (Dollars in
     thousands)       Balance   Interest  Rate   Balance   Interest  Rate
    ----------------------------------------------------------------------
    Assets:
    Residential real
     estate loans      $591,138  $15,585  5.32%   $590,217  $14,909  5.09%
    Commercial and
     other loans        601,425   23,102  7.75%    562,511   21,303  7.64%
    Consumer loans      281,992    9,736  6.96%    269,960    8,922  6.66%
    ----------------------------------------------------------------------
     Total loans      1,474,555   48,423  6.62%  1,422,688   45,134  6.40%
    Federal funds
     sold and
      other short-
       term
       investments       15,271      375  4.96%     11,510      265  4.64%
    Taxable debt
     securities         614,211   15,501  5.09%    737,776   17,060  4.66%
    Nontaxable debt
     securities          74,332    2,090  5.67%     37,430    1,074  5.79%
    Corporate stocks
     and FHLBB stock     43,136    1,563  7.30%     50,241    1,104  4.43%
    ----------------------------------------------------------------------
     Total
      securities        746,950   19,529  5.27%    836,957   19,503  4.70%
    ----------------------------------------------------------------------
     Total interest-
      earning assets  2,221,505   67,952  6.17%  2,259,645   64,637  5.77%
    Non interest-
     earning assets     165,038                    152,019
    ----------------------------------------------------------------------
     Total assets    $2,386,543                 $2,411,664
    ---------------- ---------- -------- ------ ---------- -------- ------
    Liabilities and
     Shareholders'
     Equity:
    NOW accounts       $169,206     $132  0.16%   $173,859     $147  0.17%
    Money market
     accounts           293,613    5,680  3.90%    230,911    3,442  3.01%
    Savings accounts    201,086    1,371  1.38%    199,984      561  0.57%
    Time deposits       834,870   19,009  4.59%    861,464   17,249  4.04%
    FHLBB advances      467,429   10,031  4.33%    551,035   11,104  4.06%
    Junior
     subordinated
     debentures          22,681      676  6.01%     22,681      676  6.01%
    Other                19,316      439  4.58%      7,183      166  4.67%
    ----------------------------------------------------------------------
     Total interest-
      bearing
      liabilities     2,008,201   37,338  3.75%  2,047,117   33,345  3.28%
    Demand deposits     172,232                    181,257
    Other
     liabilities         30,791                     21,972
    Shareholders'
     equity             175,319                    161,318
    ----------------------------------------------------------------------
      Total
       liabilities
       and
       shareholders'
       equity        $2,386,543                 $2,411,664
    ----------------------------------------------------------------------
     Net interest
      income (FTE)               $30,614                    $31,292
    ----------------------------------------------------------------------
    Interest rate
     spread                               2.42%                      2.49%
    Net interest
     margin                               2.78%                      2.79%
    

    Source: Washington Trust Bancorp


    Contact: Washington Trust Bancorp, Inc. Elizabeth B. Eckel, 401-348-1309 Senior Vice President, Marketing ebeckel@washtrust.com