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)

July 23, 2007

WASHINGTON TRUST BANCORP, INC.

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(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 July 23, 2007, Washington Trust Bancorp, Inc. issued a press release in which it disclosed unaudited financial information related to second quarter consolidated earnings.  A copy of the press release relating to such announcement, dated July 23, 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 July 23, 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: July 23, 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 July 23, 2007*
* Filed herewith

EX-99

Exhibit 99.1

[Omitted Graphic Reference]

WASHINGTON TRUST BANCORP, INC.

NASDAQ: WASH

Contact:  Elizabeth B. Eckel

                 Senior Vice President, Marketing

Telephone:  (401) 348-1309

E-mail:  ebeckel@washtrust.com

Date:  July 23, 2007

FOR IMMEDIATE RELEASE

Washington Trust Announces Quarterly Earnings Increase

Westerly, Rhode Island…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

-M O R E-

Washington Trust

Page Two, July 23, 2007

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.

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Washington Trust

Page Three, July 23, 2007

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.

- M O R E -

Washington Trust

Page Four, July 23, 2007

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^Ò 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 share amounts)	June 30, 2007			June 30, 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	%