8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

January 24, 2007

WASHINGTON TRUST BANCORP, INC.

-----------------------------

(Exact Name of Registrant as Specified in Charter)

Rhode Island	0-13091	05-0404671
--------------------	--------------------	---------------------
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

23 Broad Street, Westerly, Rhode Island 02891

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(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (401) 348-1200

Former name or address, if changed from last report: N/A

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On January 24, 2007, Washington Trust Bancorp, Inc. issued a press release in which it disclosed unaudited financial information related to fourth quarter consolidated earnings. A copy of the press release relating to such announcement, dated January 24, 2007, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Pursuant to General Instructions B.2 of Form 8-K, this information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(c)	Exhibits.
	Exhibit No.	Exhibit
	99.1	Press Release dated January 24, 2007*
	*Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	WASHINGTON TRUST BANCORP, INC.
Date: January 24, 2007	By:	/s/ David V. Devault
		David V. Devault
		Executive Vice President, Secretary, Treasurer and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	Press Release dated January 24, 2007*
* Filed herewith

EX-99

Exhibit 99.1

[Graphic Omitted]

NASDAQ: WASH

Contact:Elizabeth B. Eckel

Senior Vice President, Marketing

Telephone: (401) 348-1309

E-mail: ebeckel@washtrust.com

Date: January 24, 2007

FOR IMMEDIATE RELEASE

Washington Trust Announces Earnings

Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Market; symbol: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2006 net income of $6.2 million, or 45 cents per diluted share. Net income for the fourth quarter of 2005 also totaled $6.2 million, or 45 cents per diluted share. For the year ended December 31, 2006, net income was $25.0 million, up $2.0 million, or 8.7 percent, from 2005. On a per diluted share basis, net income was $1.82 for the year ended December 31, 2006, up 13 cents, or 7.7 percent, from the $1.69 reported for 2005. Operating results for 2006 reflect the full year impact of Weston Financial Group, Inc. (“Weston Financial”), which was acquired in the third quarter of 2005.

Other 2006 highlights include:

·   2006 return on average equity and average assets were 14.99% and 1.04%, respectively, up from 14.80% and 0.98%, respectively, in 2005.

·   Noninterest income, as a percent of total revenues, increased from 33.8% in 2005 to 40.7% in 2006.

·   Asset quality remained strong as nonperforming assets to total assets amounted to 0.11% at December 31, 2006.

"Washington Trust posted solid earnings in 2006, in light of a challenging interest rate environment and extremely competitive market,” stated John C. Warren, Washington Trust Chairman and Chief Executive Officer. "We continue to gain market share, attract new clients, and build existing relationships by focusing on service excellence and offering superior retail, business and wealth management products.”

-M O R E-

Washington Trust

Page Two, January 24, 2007

Net interest income totaled $15.0 million for the fourth quarter of 2006, down $727 thousand, or 4.6 percent, from the $15.7 million reported for the fourth quarter a year ago. The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the fourth quarter of 2006 amounted to 2.74%, down 10 basis points from the fourth quarter of 2005. The net interest margin was down 4 basis points from the third quarter of 2006 (excluding 8 basis points attributable to an extra third quarter dividend received from the Federal Home Loan Bank of Boston). The continued rise in short-term rates in 2006 has caused deposit costs to rise, while yields on loans and securities have increased by lesser amounts. For the year 2006, net interest income amounted to $61.5 million, up $818 thousand, or 1.3 percent, from 2005. The net interest margin for 2006 was 2.80%, compared to 2.79% for 2005.

Excluding net realized gains and losses on securities, noninterest income amounted to $10.4 million for the fourth quarter of 2006, an increase of $1.3 million, or 14 percent, from the same quarter of 2005. This increase is primarily attributable to higher revenues from wealth management services. Wealth management revenues were $6.7 million for the fourth quarter of 2006, up $898 thousand, or 15 percent, from the fourth quarter of 2005. Assets under administration totaled $3.695 billion at December 31, 2006, up $144 million in the fourth quarter of 2006 and up $423 million, or 13 percent, from $3.272 billion at December 31, 2005. These increases are due to financial market appreciation and business development efforts.

Noninterest income, excluding net realized gains and losses on securities, totaled $41.7 million for the year 2006, up $11.2 million, or 36 percent, from 2005. This increase is primarily attributable to higher revenues from wealth management services, largely due to the acquisition of Weston Financial which was completed on August 31, 2005.

Noninterest expenses amounted to $15.7 million for the fourth quarter of 2006, essentially unchanged from the same quarter a year ago although the fourth quarter of 2005 included the Corporation’s annual charitable contribution of $522 thousand. The 2006 annual contribution occurred in the second quarter. For the year ended December 31, 2006, noninterest expenses totaled $65.3 million, up $8.9 million, or 16 percent, from 2005. Included in noninterest expenses were merchant processing costs representing third-party costs incurred that are directly attributable to handling merchant credit card transactions. Merchant processing costs for 2006 increased 22 percent from 2005 largely due to increased volume of transactions processed. Excluding the impact of Weston Financial operating expenses, the increase in merchant processing costs and $605 thousand of direct acquisition and acquisition related costs recognized in 2005, noninterest expenses for 2006 increased $3.2 million, or 6 percent, from 2005.

-M O R E-

Washington Trust

Page Three, January 24, 2007

The effective income tax rates for 2006 were 33.8% for the fourth quarter and 32.6% for the full year compared with 32.7% and 32.3%, respectively, for the same periods in 2005. The higher effective income tax rate in the fourth quarter of 2006 was largely attributable to a change in the Corporation’s state tax position. The Corporation currently expects that the effective tax rate for 2007 will be in the range of 31.25% to 31.75%.

The returns on average equity and average assets for the quarter ended December 31, 2006 were 14.06% and 1.04%, respectively, compared to 15.63% and 1.03%, respectively, for the comparable quarter in 2005. The returns on average equity and average assets for the year 2006 were 14.99% and 1.04%, respectively, compared to 14.80% and 0.98%, respectively, for 2005.

Total assets were $2.399 billion at December 31, 2006, down $2.8 million from December 31, 2005. The Corporation has experienced relatively modest loan demand during 2006 and has also reduced its investment securities portfolio.

Total loans increased by $31.5 million, or 2.2 percent, in the fourth quarter of 2006 and $58.1 million, or 4.1 percent, in the year, with the largest increase in the commercial loan category. Commercial and commercial real estate loans were up by $26.1 million on a linked quarter basis and $32.7 million for the year. Residential mortgages increased by $1.3 million from September 30, 2006 and $6.0 million from December 31, 2005. Led by growth in home equity loans, consumer loans rose by $4.1 million in the fourth quarter of 2006 and $19.4 million from the end of 2005.

The investment securities portfolio has declined by $80.1 million since December 31, 2005, primarily resulting from balance sheet repositioning transactions in response to the flat to inverted yield curve shape in effect during most of this period. Net realized losses on securities of $16 thousand were recognized in the fourth quarter of 2006, including sales of mortgage-backed securities totaling $48.1 million with a realized loss of $1.2 million and sales of equity securities with a realized gain of $1.2 million. For the year ended December 31, 2006, net realized gains on securities sales amounted to $443 thousand. This included a realized gain of $381 thousand recognized in the second quarter of 2006 in connection with the annual charitable donation of appreciated equity securities. Net realized gains and losses on securities sales during 2005 totaled $357 thousand, resulting principally from the fourth quarter 2005 charitable donation of appreciated equity securities. Proceeds from the sales transactions during the fourth quarter of 2006 were

- M O R E -

Washington Trust

Page Four, January 24, 2007

primarily used to reduce advances from the Federal Home Loan Bank of Boston (“FHLBB”). FHLBB advances increased by $10.4 million and declined by $70.8 million during the three and twelve month periods ended December 31, 2006, respectively.

Total deposits declined by $22.2 million, or 1.3 percent, in the fourth quarter of 2006 and increased by $38.7 million, or 2.4 percent, from December 31, 2005. Excluding brokered certificates of deposit, in-market deposits were down $11.6 million, or 0.8 percent, on a linked quarter basis and up $63.2 million, or 4.4 percent, for the year. The Corporation has generally experienced little in-market deposit growth during the fourth quarter in recent years.

Asset quality continues to remain strong , with nonperforming assets (nonaccrual loans and property acquired through foreclosure) amounting to $2.7 million, or 0.11% of total assets, at December 31, 2006, compared to $2.4 million, or 0.10% of total assets at December 31, 2005. Net charge-offs amounted to $224 thousand for the year ended December 31, 2006, compared to net loan recoveries of $197 thousand for 2005.

The allowance for loan losses was $18.9 million, or 1.29% of total loans, at December 31, 2006, compared to $17.9 million, or 1.28% of total loans, at December 31, 2005. The Corporation’s loan loss provision charged to earnings amounted to $300 thousand and $1.2 million, respectively, for the quarter and year ended December 31, 2006, unchanged from the amounts recorded for the same periods in 2005.

Total shareholders’ equity amounted to $173.1 million at December 31, 2006, compared to $158.4 million at December 31, 2005. Book value per share as of December 31, 2006 and December 31, 2005 amounted to $12.89 and $11.86, respectively.

The Corporation announced during the fourth quarter of 2006 that its Board of Directors has approved a new common stock repurchase plan to replace its prior stock repurchase plan. The new plan authorizes the repurchase of up to 400,000 shares, or approximately 3%, of the Corporation's common stock in open market transactions. During the fourth quarter of 2006, 50,000 shares were repurchased under the prior plan at a cost of $1.4 million.

- M O R E -

Washington Trust

Page Five, January 24, 2007

Washington Trust President 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 Wednesday, January 24, 2007 at 4:30 p.m. (Eastern Time) to discuss the Corporation’s fourth quarter and year-end 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 #: 226875. The replay will be available until 11:59 p.m. on January 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® 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. 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 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
	Dec. 31,			Sep. 30,			Dec. 31,
(Dollars and shares in thousands, except per share amounts)	2006			2006			2005
Operating Results
Net interest income	$	14,976		$	15,866		$	15,703
Provision for loan losses		300			300			300
Net realized (1osses) gains on securities		(16	)		(365	)		337
Other noninterest income		10,449			11,148			9,162
Noninterest expenses		15,740			16,611			15,766
Income tax expense		3,166			3,160			2,983
Net income		6,203			6,578			6,153
Per Share
Basic earnings	$	0.46		$	0.49		$	0.46
Diluted earnings	$	0.45		$	0.48		$	0.45
Dividends declared	$	0.19		$	0.19		$	0.18
Weighted Average Shares Outstanding
Basic		13,452.5			13,436.6			13,352.4
Diluted		13,769.3			13,726.3			13,659.6
Key Ratios
Return on average assets		1.04	%		1.09	%		1.03	%
Return on average equity		14.06	%		15.62	%		15.63	%
Interest rate spread (taxable equivalent basis)		2.39	%		2.51	%		2.53	%
Net interest margin (taxable equivalent basis)		2.74	%		2.86	%		2.84	%
Allowance for Loan Losses
Balance at beginning of period	$	18,645		$	18,480		$	17,614
Provision charged to earnings		300			300			300
Net (charge-offs) recoveries		(51	)		(135	)		4
Balance at end of period	$	18,894		$	18,645		$	17,918

Washington Trust Bancorp, Inc. and Subsidiaries
FINANCIAL SUMMARY
	Years Ended
	Dec. 31,			Dec. 31,
(Dollars and shares in thousands, except per share amounts)	2006			2005
Operating Results
Net interest income	$	61,474		$	60,656
Provision for loan losses		1,200			1,200
Net realized gains on securities		443			357
Other noninterest income		41,740			30,589
Noninterest expenses		65,335			56,393
Income tax expense		12,091			10,985
Net income		25,031			23,024
Per Share
Basic earnings	$	1.86		$	1.73
Diluted earnings	$	1.82		$	1.69
Dividends declared	$	0.76		$	0.72
Weighted Average Shares Outstanding
Basic		13,424.1			13,315.2
Diluted		13,723.2			13,626.7
Key Ratios
Return on average assets		1.04	%		0.98	%
Return on average equity		14.99	%		14.80	%
Interest rate spread (taxable equivalent basis)		2.47	%		2.49	%
Net interest margin (taxable equivalent basis)		2.80	%		2.79	%
Allowance for Loan Losses
Balance at beginning of period	$	17,918		$	16,771
Provision charged to earnings		1,200			1,200
Reclassification of allowance on off-balance sheet exposures		-			(250	)
Net (charge-offs) recoveries		(224	)		197
Balance at end of period	$	18,894		$	17,918

Washington Trust Bancorp, Inc. and Subsidiaries
FINANCIAL SUMMARY
(Dollars and shares in thousands, except per share amounts)	Dec. 31,			Sep. 30,			Dec. 31,
Period-End Balance Sheet	2006			2006			2005
Assets	$	2,399,165		$	2,403,266		$	2,402,003
Total securities		703,851			741,350			783,941
Loans:
Commercial and other:
Mortgages		282,019			274,635			291,292
Construction and development		32,233			29,653			37,190
Other		273,145			257,026			226,252
Total commercial and other		587,397			561,314			554,734
Residential real estate:
Mortgages		577,522			572,399			565,680
Homeowner construction		11,149			14,973			17,028
Total residential real estate		588,671			587,372			582,708
Consumer:
Home equity lines		145,676			147,897			161,100
Home equity loans		93,947			90,711			72,288
Other		44,295			41,190			31,078
Total consumer		283,918			279,798			264,466
Total loans		1,459,986			1,428,484			1,401,908
Deposits:
Demand deposits		186,533			189,329			196,102
NOW accounts		175,479			172,317			178,677
Money market accounts		286,998			295,431			223,255
Savings accounts		205,998			193,029			212,499
Time deposits		822,989			850,080			828,725
Total deposits		1,677,997			1,700,186			1,639,258
Brokered deposits included in time deposits		175,618			186,184			200,115
Federal Home Loan Bank advances		474,561			464,148			545,323
Shareholders’ equity		173,056			172,420			158,446
Capital Ratios
Tier 1 risk-based capital		9.60	%		9.55	%		9.06	%
Total risk-based capital		11.00	%		10.96	%		10.51	%
Tier 1 leverage ratio		6.04	%		5.81	%		5.45	%
Share Information
Shares outstanding at end of period		13,429.7			13,445.1			13,361.8
Book value per share	$	12.89		$	12.82		$	11.86
Tangible book value per share	$	8.61		$	8.53		$	7.79
Market value per share	$	27.89		$	26.51		$	26.18
Credit Quality
Nonaccrual loans:
Commercial:
Mortgages	$	981		$	436		$	394
Construction and development		-			-			-
Other		831			608			624
Residential real estate		721			1,004			1,147
Consumer		190			132			249
Total nonaccrual loans	$	2,723		$	2,180		$	2,414
Other real estate owned, net		-			402			-
Nonperforming assets to total assets		0.11	%		0.11	%		0.10	%
Nonaccrual loans to total loans		0.19	%		0.15	%		0.17	%
Allowance for loan losses to nonaccrual loans		693.87	%		855.28	%		742.25	%
Allowance for loan losses to total loans		1.29	%		1.31	%		1.28	%
Assets Under Administration
Market value	$	3,694,813		$	3,550,965		$	3,271,756

Certain prior year amounts have been reclassified to conform to the current year classification.

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
	(Unaudited)
(Dollars in thousands)	Dec. 31,			Dec. 31,
	2006			2005
Assets:
Cash and due from banks	$	54,337		$	48,997
Federal funds sold and other short-term investments		17,572			17,166
Mortgage loans held for sale		2,148			439
Securities:
Available for sale, at fair value; amortized cost $525,966 in 2006 and $620,638 in 2005		526,396			619,234
Held to maturity, at cost; fair value $175,369 in 2006 and $162,756 in 2005		177,455			164,707
Total securities		703,851			783,941
Federal Home Loan Bank stock, at cost		28,727			34,966
Loans:
Commercial and other		587,397			554,734
Residential real estate		588,671			582,708
Consumer		283,918			264,466
Total loans		1,459,986			1,401,908
Less allowance for loan losses		18,894			17,918
Net loans		1,441,092			1,383,990
Premises and equipment, net		24,307			23,737
Accrued interest receivable		11,268			10,594
Investment in bank-owned life insurance		39,770			30,360
Goodwill		44,558			39,963
Identifiable intangible assets, net		12,816			14,409
Other assets		18,719			13,441
Total assets	$	2,399,165		$	2,402,003
Liabilities:
Deposits:
Demand deposits	$	186,533		$	196,102
NOW accounts		175,479			178,677
Money market accounts		286,998			223,255
Savings accounts		205,998			212,499
Time deposits		822,989			828,725
Total deposits		1,677,997			1,639,258
Dividends payable		2,556			2,408
Federal Home Loan Bank advances		474,561			545,323
Junior subordinated debentures		22,681			22,681
Other borrowings		14,684			9,774
Accrued expenses and other liabilities		33,630			24,113
Total liabilities		2,226,109			2,243,557
Shareholders’ Equity:
Common stock of $.0625 par value; authorized 30,000,000 shares;
issued 13,492,110 shares in 2006 and 13,372,295 in 2005		843			836
Paid-in capital		35,893			32,778
Retained earnings		141,548			126,735
Accumulated other comprehensive loss		(3,515	)		(1,653	)
Treasury stock, at cost; 62,432 shares in 2006 and 10,519 in 2005		(1,713	)		(250	)
Total shareholders’ equity		173,056			158,446
Total liabilities and shareholders’ equity	$	2,399,165		$	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					Twelve Months
Periods ended December 31,	2006			2005		2006		2005
Interest income:
Interest and fees on loans	$	23,733		$	21,592	$	92,190	$	78,931
Interest on securities
Taxable		8,210			8,130		33,763		32,934
Nontaxable		514			276		1,618		886
Dividends on corporate stock and Federal Home Loan Bank stock		718			653		2,842		2,491
Interest on federal funds sold and other short-term investments		204			130		721		451
Total interest income		33,379			30,781		131,134		115,693
Interest expense:
Deposits		13,110			9,386		46,982		32,186
Federal Home Loan Bank advances		4,801			5,273		20,916		22,233
Junior subordinated debentures		338			334		1,352		458
Other		154			85		410		160
Total interest expense		18,403			15,078		69,660		55,037
Net interest income		14,976			15,703		61,474		60,656
Provision for loan losses		300			300		1,200		1,200
Net interest income after provision for loan losses		14,676			15,403		60,274		59,456
Noninterest income:
Wealth management services:
Trust and investment advisory fees	$	5,063		$	4,507	$	19,099	$	14,407
Mutual fund fees		1,092			1,032		4,665		1,336
Financial planning, commissions and other service fees		583			301		2,616		919
Wealth management services		6,738			5,840		26,380		16,662
Service charges on deposit accounts		1,248			1,165		4,915		4,502
Merchant processing fees		1,380			1,156		6,208		5,203
Income from bank-owned life insurance		396			277		1,410		1,110
Net gains on loan sales		394			359		1,423		1,679
Net realized (losses) gains on securities		(16	)		337		443		357
Other income		293			365		1,404		1,433
Total noninterest income		10,433			9,499		42,183		30,946
Noninterest expense:
Salaries and employee benefits		9,598			9,030		38,698		32,133
Net occupancy		982			977		3,888		3,460
Equipment		818			873		3,370		3,456
Merchant processing costs		1,167			962		5,257		4,319
Outsourced services		505			460		2,009		1,723
Advertising and promotion		405			481		1,894		1,977
Legal, audit and professional fees		295			475		1,637		1,900
Amortization of intangibles		384			410		1,593		852
Other		1,586			2,098		6,989		6,573
Total noninterest expense		15,740			15,766		65,335		56,393
Income before income taxes		9,369			9,136		37,122		34,009
Income tax expense		3,166			2,983		12,091		10,985
Net income	$	6,203		$	6,153	$	25,031	$	23,024
Weighted average shares outstanding - basic		13,452.5			13,352.4		13,424.1		13,315.2
Weighted average shares outstanding - diluted		13,769.3			13,659.6		13,723.2		13,626.7
Per share information:
Basic earnings per share	$	0.46		$	0.46	$	1.86	$	1.73
Diluted earnings per share	$	0.45		$	0.45	$	1.82	$	1.69
Cash dividends declared per share	$	0.19		$	0.18	$	0.76	$	0.72

Certain prior year amounts have been reclassified to conform to the current year classification.

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS
	(Unaudited)
Three months ended December 31,	2006							2005
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets:
Residential real estate loans	$	592,055	$	7,732		5.18	%	$	586,775	$	7,391		5.00	%
Commercial and other loans		567,356		11,115		7.77	%		555,746		10,212		7.29	%
Consumer loans		280,118		4,929		6.98	%		261,424		4,039		6.13	%
Total loans		1,439,529		23,776		6.55	%		1,403,945		21,642		6.12	%
Federal funds sold and
other short-term investments		14,940		204		5.43	%		13,444		130		3.86	%
Taxable debt securities		670,523		8,210		4.86	%		736,309		8,131		4.38	%
Nontaxable debt securities		54,024		789		5.80	%		29,235		423		5.75	%
Corporate stocks and FHLBB stock		45,233		811		7.11	%		48,914		738		5.98	%
Total securities		784,720		10,014		5.06	%		827,902		9,422		4.52	%
Total interest-earning assets		2,224,249		33,790		6.03	%		2,231,847		31,065		5.52	%
Non interest-earning assets		171,361							153,043
Total assets	$	2,395,610						$	2,384,890
Liabilities and Shareholders’ Equity:
NOW accounts	$	170,111	$	76		0.18	%	$	175,235	$	64		0.15	%
Money market accounts		306,036		3,037		3.94	%		228,173		1,485		2.58	%
Savings deposits		201,031		577		1.14	%		218,043		312		0.57	%
Time deposits		836,645		9,420		4.47	%		800,668		7,524		3.73	%
FHLBB advances		457,690		4,801		4.16	%		549,888		5,274		3.80	%
Junior subordinated debentures		22,681		338		5.91	%		22,681		334		5.85	%
Other		12,472		154		4.91	%		7,346		85		4.59	%
Total interest-bearing liabilities		2,006,666		18,403		3.64	%		2,002,034		15,078		2.99	%
Demand deposits		186,017							202,570
Other liabilities		26,482							22,857
Shareholders’ equity		176,445							157,429
Total liabilities and shareholders’ equity	$	2,395,610						$	2,384,890
Net interest income (FTE)			$	15,387						$	15,987
Interest rate spread						2.39	%						2.53	%
Net interest margin						2.74	%						2.84	%

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS
	(Unaudited)
Twelve months ended December 31,	2006							2005
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets:
Residential real estate loans	$	590,245	$	30,237		5.12	%	$	562,838	$	27,890		4.96	%
Commercial and other loans		564,310		43,409		7.69	%		531,434		37,244		7.01	%
Consumer loans		274,764		18,748		6.82	%		246,959		13,983		5.66	%
Total loans		1,429,319		92,394		6.46	%		1,341,231		79,117		5.90	%
Federal funds sold and
other short-term investments		14,548		721		4.96	%		14,703		451		3.07	%
Taxable debt securities		712,870		33,763		4.74	%		783,662		32,934		4.20	%
Nontaxable debt securities		42,977		2,486		5.79	%		23,329		1,362		5.84	%
Corporate stocks and FHLBB stock		48,643		3,205		6.59	%		50,763		2,858		5.63	%
Total securities		819,038		40,175		4.91	%		872,457		37,605		4.31	%
Total interest-earning assets		2,248,357		132,569		5.90	%		2,213,688		116,722		5.27	%
Non interest-earning assets		159,115							137,460
Total assets	$	2,407,472						$	2,351,148
Liabilities and Shareholders’ Equity:
NOW accounts	$	173,137	$	302		0.17	%	$	176,706	$	295		0.17	%
Money market accounts		262,613		9,063		3.45	%		203,799		4,386		2.15	%
Savings deposits		198,040		1,464		0.74	%		234,311		1,392		0.59	%
Time deposits		856,979		36,153		4.22	%		741,456		26,113		3.52	%
FHLBB advances		509,611		20,916		4.10	%		611,177		22,233		3.64	%
Junior subordinated debentures		22,681		1,352		5.96	%		7,767		458		5.90	%
Other		8,627		410		4.76	%		3,581		160		4.48	%
Total interest-bearing liabilities		2,031,688		69,660		3.43	%		1,978,797		55,037		2.78	%
Demand deposits		185,322							197,245
Other liabilities		23,517							19,498
Shareholders’ equity		166,945							155,608
Total liabilities and shareholders’ equity	$	2,407,472						$	2,351,148
Net interest income (FTE)			$	62,909						$	61,685
Interest rate spread						2.47	%						2.49	%
Net interest margin						2.80	%						2.79	%