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 22, 2008

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 January 22, 2008, Washington Trust Bancorp, Inc. issued a press release in which it disclosed unaudited financial information related to first quarter consolidated earnings.  A copy of the press release relating to such announcement, dated January 22, 2008, 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 22, 2008*
	*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 22, 2008	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 22, 2008*
* Filed herewith

EX-99.HTM

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 22, 2008

FOR IMMEDIATE RELEASE

Washington Trust Announces Fourth Quarter 2007 Earnings

Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Market; symbol: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2007 net income of $5.8 million, or 43 cents per diluted share.  Net income for the fourth quarter of last year totaled $6.2 million, or 45 cents per diluted share.  The year-over-year decline in fourth quarter 2007 net income was primarily attributable to a higher provision for loan losses.  The increase in the provision is based on management’s assessment of various factors affecting the loan portfolio, including, among others, growth in the portfolio, ongoing evaluation of credit quality and economic conditions.  The returns on average equity and average assets for the fourth quarter of 2007 were 12.73% and 0.94%, respectively, compared to 14.06% and 1.04%, respectively, for the fourth quarter of 2006.

Fourth Quarter 2007 highlights include:

·   Revenues from wealth management services were up 4 percent from third quarter 2007 and up 11 percent compared to the fourth quarter a year ago.

·   Noninterest income (excluding securities gains) amounted to 43% of total revenues for the quarter.

·   Commercial loan growth continued to be strong with an increase of $30.2 million in the quarter.  Commercial loans grew by 16 percent, or $92.9 million, for the full year 2007.

·   Fourth quarter net interest margin declined 16 basis points from the third quarter of 2007.

John C. Warren, Washington Trust Chairman and CEO stated, "Despite unfavorable economic and market conditions, Washington Trust's fourth quarter and year-end 2007 earnings were strong, particularly in comparison with our peers in the region.  Our performance was driven by solid growth in both the wealth management and commercial lending areas."  Warren added, "We recognize that 2008 will once again be a challenging year, but we will continue to focus on the keys to our success: providing superior service, maintaining very good asset quality, generating diversified earnings, and investing in our future.  We believe that the increase in our loan loss provision is a prudent response to the conditions we

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Washington Trust

Page Two, January 22, 2008

are seeing.  We continue to be pleased with the strong growth in our commercial loan portfolio, but have general concerns with the overall economic environment.”

Net income for the year ended December 31, 2007 was $23.8 million, or $1.75 per diluted share, compared to $25.0 million, or $1.82 per diluted share, for 2006.  Results for the year 2007 included $1.1 million in debt prepayment charges, recorded in noninterest expense in the first quarter of 2007 as a result of prepayments of higher cost Federal Home Loan Bank of Boston (“FHLBB”) advances as well as a $700 thousand increase in the provision for loan losses.  There were no debt prepayment penalty charges in 2006.  The returns on average equity and average assets for the year ended December 31, 2007 were 13.48% and 0.99%, respectively, compared to 14.99% and 1.04%, respectively, for the prior year.

RESULTS OF OPERATIONS

Net interest income totaled $14.8 million for the fourth quarter of 2007, down $473 thousand, or 3 percent, compared to the third quarter of 2007 and down $139 thousand, or 1 percent, from the fourth quarter a year ago.  On a year to date basis, net interest income declined $1.5 million, or 2.5 percent, from 2006.  The decline in net interest income was due to the fact that rates paid on deposits and borrowings have risen faster than earning asset yields and a higher rate of growth was experienced in higher cost deposit categories.

The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the fourth quarter 2007 was 2.65%, down 16 basis points from the third quarter of 2007 and down 9 basis points from the fourth quarter of 2006.  The decline in net interest margin from the third quarter of 2007 was attributable to decreases in yields on prime-related commercial and consumer loans resulting from actions taken by the Federal Reserve to reduce short-term interest rates, with little commensurate reduction in deposit rates paid during the same period.  The decline in net interest margin from the fourth quarter of 2006 is attributable to more rapid increases in rates paid on deposit and FHLB advances than asset yields, and to a change in funding mix resulting from declines in total average deposits and a resulting increase in higher cost FHLB advances.  For the year 2007 net interest margin was 2.76%, compared to 2.80% for 2006.

Total noninterest income amounted to $11.3 million and $45.5 million, respectively, for the quarter and year ended December 31, 2007 as compared to $10.4 million and $42.2 million for the same periods in 2006.  Net realized gains on sales of securities included in noninterest income amounted to $119 thousand and $455 thousand, respectively, for the quarter and year ended December 31, 2007 as compared to net realized losses of $16 thousand and net realized gains of $443 thousand, respectively, for the same periods in 2006.

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Washington Trust

Page Three, January 22, 2008

Excluding net realized gains and losses on securities, noninterest income amounted to $11.2 million for the fourth quarter of 2007, up $720 thousand, or 7 percent, from the same quarter a year ago.  For the year 2007, noninterest income on this basis totaled $45.1 million and increased $3.3 million, or 8 percent, from the prior year.  The increase was largely attributable to higher revenues from wealth management services.  Wealth management revenues for the quarter and year ended December 31, 2007 were up $737 thousand (11 percent) and $2.6 million (10 percent), respectively.  Wealth management assets under administration totaled $4.014 billion at December 31, 2007, down slightly for the fourth quarter.  For the full year 2007, investment performance as well as successful business development efforts and customer cash flows contributed to an increase of $405 million, or 11 percent, from December 31, 2006.

Noninterest expenses amounted to $16.7 million for the fourth quarter of 2007, up $1.0 million, or 6 percent, from the same quarter a year earlier.  For the year 2007, noninterest expenses totaled $68.9 million, up $3.6 million, or 6 percent, from 2006.  Included in this increase was $1.1 million in debt prepayment penalties that were incurred in the first quarter of 2007 as a result of prepayments of higher cost FHLBB advances.  Excluding the debt prepayment penalty expense, noninterest expenses for 2007 increased $2.5 million, or 4 percent, over last year.

Income tax expense amounted to $2.6 million and $10.8 million, respectively, for the quarter and year ended December 31, 2007 as compared to $3.2 million and $12.1 million, respectively for the same periods in 2006.  The Corporation’s effective tax rate for the quarter and year ended December 31, 2007 was 31.1% and 31.3%, respectively, down from 33.8% and 32.6%, respectively, for the same periods in 2006, primarily due to higher average balances in nontaxable state and municipal debt obligations.

ASSET QUALITY

Nonperforming assets (nonaccrual loans and property acquired though foreclosure) amounted to $4.3 million, or 0.17% of total assets, at December 31, 2007, compared to $2.7 million, or 0.11% of total

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Page Four, January 22, 2008

assets, at December 31, 2006.  There are no assets acquired through foreclosure on the balance sheet at December 31, 2007.  Nonaccrual loans as a percent of total loans stood at 0.27% at December 31, 2007 compared to 0.18% of total loans at September 30, 2007 and 0.19% of total loans at December 31, 2006.

Total 30 day+ delinquencies amounted to $7.0 million, or 0.45% of total loans, at December 31, 2007, up $1.2 million in the fourth quarter of 2007, but down $191 thousand from the balance at December 31, 2006.   The $1.2 million increase in total 30 day+ delinquencies in the fourth quarter of 2007 was primarily due to an increase in the commercial category that was offset in part by declines in residential and consumer loan delinquencies.

Total residential mortgage and consumer loan 30 day+ delinquencies declined in the fourth quarter to $2.3 million, or 0.26% of these loans, at December 31, 2007, compared to $3.6 million, or 0.42%, at September 30, 2007.  Total 90 day+ delinquencies in the residential mortgage and consumer loans portfolios amounted to $441 thousand (two loans) and $86 thousand (two loans), respectively, as of December 31, 2007.  Total nonaccrual loans, which include the 90 day+ delinquencies, amounted to $1.2 million and $271 thousand in the residential mortgage and consumer loan categories, respectively, at December 31, 2007.  The Corporation has never offered a sub-prime or Alt-A residential mortgage loan program.

The Corporation’s loan loss provision charged to earnings amounted to $1.0 million and $1.9 million for the quarter and year ended December 31, 2007, respectively, compared to $300 thousand and $1.2 million, respectively, for the same periods in 2006.  The increase in the fourth quarter 2007 provision for loan losses was based on management’s assessment of various factors affecting the loan portfolio, including, among others, growth in the portfolio, ongoing evaluation of credit quality, with particular emphasis on the commercial portfolio, and general economic conditions.  Net charge-offs amounted to $517 thousand for 2007, including $195 thousand in the fourth quarter of 2007, compared to net charge-offs of $224 thousand for the year 2006.

The Corporation will continue to assess the adequacy of its allowance for loan losses in accordance with its established policies.  The provision for loan losses in 2008 is expected to increase somewhat above the 2007 level, subject to the achievement of anticipated portfolio growth and the future evaluation of economic conditions.

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Page Five, January 22, 2008

The allowance for loan losses was $20.3 million, or 1.29% of total loans, at December 31, 2007, compared to $18.9 million, or 1.29% of total loans, at December 31, 2006, and $19.5 million, or 1.29% of total loans, at September 30, 2007.

FINANCIAL CONDITION

Total assets were $2.540 billion at December 31, 2007, up $140.5 million from December 31, 2006.  Total loans grew $113.7 million, or 8 percent, during 2007 and amounted to $1.6 billion.  Commercial loans increased $92.9 million (16 percent), residential loans increased by 11.0 million (2 percent), and consumer loans increased by $9.8 million (3 percent), during the year.  The investment securities portfolio totaled $751.8 million at December 31, 2007, up $48.0 million from December 31, 2006.  Included in the investment securities portfolio at December 31, 2007 were mortgage-backed securities with a fair value of $469.4 million.  All of the Corporation’s mortgage-backed securities are issued by U.S. Government sponsored agencies.  The Corporation reclassified its Held To Maturity portfolio to the Available For Sale category during the second quarter of 2007.

Total deposits decreased by $31.8 million from December 31, 2006.  Excluding brokered certificates of deposit, in-market deposits were up $14.0 million during 2007.  Declines in demand and savings deposits were offset by increases in money market accounts and in-market certificates of deposit.  FHLBB advances totaled $616.4 million at December 31, 2007, up $141.9 million from December 31, 2006.  Other borrowings increased $17.9 million in 2007, mainly due to an increase in securities sold under repurchase agreements.

Total shareholders’ equity amounted to $186.5 million at December 31, 2007, compared to $173.1 million at December 31, 2006.  Under the Corporation’s 2006 Stock Repurchase Plan, 185,400 shares were repurchased at a total cost of $4.8 million during the year ended December 31, 2007.  There were no shares repurchased in the fourth quarter.  Book value per share as of December 31, 2007 and December 31, 2006 amounted to $13.97 and $12.89, respectively.

DIVIDENDS DECLARED

The Board of Directors declared a quarterly dividend of 20 cents per share for the quarter ended December 31, 2007.  The dividend was paid on January 11, 2008 to shareholders of record on January 3, 2008.

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Page Six, January 22, 2008

CONFERENCE CALL

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 Wednesday, January 23, 2008 at 8:30 a.m. (Eastern Time) to discuss the Corporation’s fourth quarter and year end results.  This call is being webcast by TalkPoint 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) 344-7529 and entering Conference ID #: 414901.  The replay will be available until 11:59 p.m. on January 31, 2008.

BACKGROUND

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.

FORWARD-LOOKING STATEMENTS

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 collectibility,  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
CONSOLIDATED BALANCE SHEETS
	(unaudited)
(Dollars in thousands)	December 31,			December 31,
	2007			2006
Assets:
Cash and due from banks	$	32,790		$	54,337
Federal funds sold		7,600			16,425
Other short-term investments		722			1,147
Mortgage loans held for sale		1,981			2,148
Securities:
Available for sale, at fair value; amortized cost $750,583 in 2007 and $525,966 in 2006		751,778			526,396
Held to maturity, at cost; fair value $175,369 in 2006		−			177,455
Total securities		751,778			703,851
Federal Home Loan Bank stock, at cost		31,725			28,727
Loans:
Commercial and other		680,266			587,397
Residential real estate		599,671			588,671
Consumer		293,715			283,918
Total loans		1,573,652			1,459,986
Less allowance for loan losses		20,277			18,894
Net loans		1,553,375			1,441,092
Premises and equipment, net		25,420			24,307
Accrued interest receivable		11,427			11,268
Investment in bank-owned life insurance		41,363			39,770
Goodwill		50,479			44,558
Identifiable intangible assets, net		11,433			12,816
Other assets		19,847			18,719
Total assets	$	2,539,940		$	2,399,165
Liabilities:
Deposits:
Demand deposits	$	175,542		$	186,533
NOW accounts		164,944			175,479
Money market accounts		321,600			286,998
Savings accounts		176,278			205,998
Time deposits		807,841			822,989
Total deposits		1,646,205			1,677,997
Dividends payable		2,677			2,556
Federal Home Loan Bank advances		616,417			474,561
Junior subordinated debentures		22,681			22,681
Other borrowings		32,560			14,684
Accrued expenses and other liabilities		32,887			33,630
Total liabilities		2,353,427			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		34,874			35,893
Retained earnings		154,647			141,548
Accumulated other comprehensive loss		(239	)		(3,515	)
Treasury stock, at cost; 137,652 shares in 2007 and 62,432 in 2006		(3,612	)		(1,713	)
Total shareholders’ equity		186,513			173,056
Total liabilities and shareholders’ equity	$	2,539,940		$	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					Twelve Months
Periods ended December 31,	2007		2006			2007		2006
Interest income:
Interest and fees on loans	$	25,340	$	23,733		$	98,720	$	92,190
Interest on securities:
Taxable		7,967		8,210			31,163		33,763
Nontaxable		775		514			2,983		1,618
Dividends on corporate stock and Federal Home Loan Bank stock		665		718			2,737		2,842
Interest on federal funds sold and other short-term investments		181		204			831		721
Total interest income		34,928		33,379			136,434		131,134
Interest expense:
Deposits		13,090		13,110			52,422		46,982
Federal Home Loan Bank advances		6,318		4,801			21,641		20,916
Junior subordinated debentures		338		338			1,352		1,352
Other		345		154			1,075		410
Total interest expense		20,091		18,403			76,490		69,660
Net interest income		14,837		14,976			59,944		61,474
Provision for loan losses		1,000		300			1,900		1,200
Net interest income after provision for loan losses		13,837		14,676			58,044		60,274
Noninterest income:
Wealth management services:
Trust and investment advisory fees		5,498		5,063			21,124		19,099
Mutual fund fees		1,430		1,092			5,430		4,665
Financial planning, commissions and other service fees		547		583			2,462		2,616
Wealth management services		7,475		6,738			29,016		26,380
Service charges on deposit accounts		1,154		1,248			4,713		4,915
Merchant processing fees		1,425		1,380			6,710		6,208
Income from bank-owned life insurance		427		396			1,593		1,410
Net gains on loan sales and commissions on loans originated for others		288		394			1,493		1,423
Net realized gains (losses) on securities		119		(16	)		455		443
Other income		400		293			1,529		1,404
Total noninterest income		11,288		10,433			45,509		42,183
Noninterest expense:
Salaries and employee benefits		9,791		9,598			39,986		38,698
Net occupancy		1,074		982			4,150		3,888
Equipment		909		818			3,473		3,370
Merchant processing costs		1,193		1,167			5,686		5,257
Outsourced services		570		505			2,180		2,009
Advertising and promotion		557		405			2,024		1,894
Legal, audit and professional fees		463		295			1,761		1,637
Amortization of intangibles		326		384			1,383		1,593
Debt prepayment penalties		-		-			1,067		-
Other		1,842		1,586			7,196		6,989
Total noninterest expense		16,725		15,740			68,906		65,335
Income before income taxes		8,400		9,369			34,647		37,122
Income tax expense		2,613		3,166			10,847		12,091
Net income	$	5,787	$	6,203			23,800	$	25,031
Weighted average shares outstanding - basic		13,347.5		13,452.5			13,355.5		13,424.1
Weighted average shares outstanding - diluted		13,580.7		13,769.3			13,604.1		13,723.2
Per share information:
Basic earnings per share	$	0.43	$	0.46		$	1.78	$	1.86
Diluted earnings per share	$	0.43	$	0.45		$	1.75	$	1.82
Cash dividends declared per share	$	0.20	$	0.19		$	0.80	$	0.76

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	At or for the Quarters Ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(Dollars in thousands, except per share amounts)	2007			2007			2007			2007			2006
Financial Data
Total assets	$	2,539,940		$	2,431,762		$	2,393,882		$	2,399,962		$	2,399,165
Total loans		1,573,652			1,514,493			1,489,174			1,470,200			1,459,986
Total securities		751,778			688,709			676,204			706,406			703,851
Total deposits		1,646,205			1,655,887			1,669,089			1,683,592			1,677,997
Total shareholders equity		186,513			177,897			171,188			175,527			173,056
Net income		5,787			6,556			5,482			5,975			6,203
Per Share Data
Basic earnings per share	$	0.43		$	0.49		$	0.41		$	0.45		$	0.46
Diluted earnings per share	$	0.43		$	0.48		$	0.40		$	0.44		$	0.45
Dividends declared per share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.19
Book value per share	$	13.97		$	13.33		$	12.87		$	13.12		$	12.89
Tangible book value per share	$	9.33		$	8.66		$	8.61		$	8.86		$	8.61
Market value per share	$	25.23		$	26.97		$	25.21		$	26.81		$	27.89
Key Ratios
Return on average assets		0.94	%		1.10	%		0.92	%		1.00	%		1.04	%
Return on average equity		12.73	%		14.99	%		12.57	%		13.66	%		14.06	%
Capital Ratios
Tier 1 risk-based capital		9.10	%		9.11	%		9.40	%		9.47	%		9.57	%
Total risk-based capital		10.39	%		10.43	%		10.73	%		10.84	%		10.96	%
Tier 1 leverage ratio		6.09	%		6.11	%		6.16	%		6.14	%		6.01	%
Average Yields (taxable equivalent basis)
Assets
Residential real estate loans		5.41	%		5.35	%		5.31	%		5.32	%		5.18	%
Commercial and other loans		7.39	%		7.62	%		7.64	%		7.86	%		7.77	%
Consumer loans		6.74	%		7.01	%		6.98	%		6.95	%		6.98	%
Total loans		6.51	%		6.62	%		6.59	%		6.66	%		6.55	%
Federal funds sold and
other short-term investments		4.72	%		5.10	%		4.36	%		5.75	%		5.43	%
Taxable debt securities		5.19	%		5.16	%		5.17	%		5.07	%		4.86	%
Nontaxable debt securities		5.59	%		5.61	%		5.65	%		5.69	%		5.80	%
Corporate stocks and FHLBB stock		7.00	%		7.03	%		7.15	%		7.46	%		7.11	%
Total securities		5.33	%		5.31	%		5.32	%		5.28	%		5.06	%
Total interest-earning assets		6.12	%		6.20	%		6.16	%		6.19	%		6.03	%
Liabilities
NOW accounts		0.20	%		0.17	%		0.15	%		0.16	%		0.18	%
Money market accounts		3.93	%		3.90	%		3.92	%		3.88	%		3.94	%
Savings accounts		1.32	%		1.32	%		1.35	%		1.40	%		1.14	%
Time deposits		4.55	%		4.60	%		4.61	%		4.57	%		4.47	%
FHLBB advances		4.56	%		4.44	%		4.35	%		4.31	%		4.16	%
Junior subordinated debentures		5.91	%		5.91	%		5.98	%		6.04	%		5.91	%
Other		4.36	%		4.47	%		4.51	%		4.73	%		4.91	%
Total interest-bearing liabilities		3.85	%		3.78	%		3.77	%		3.73	%		3.64	%
Interest rate spread (taxable equivalent basis)		2.27	%		2.42	%		2.39	%		2.46	%		2.39	%
Net interest margin (taxable equivalent basis)		2.65	%		2.81	%		2.76	%		2.81	%		2.74	%
Wealth Management Assets (1)
Market value of assets under administration	$	4,014,352		$	4,025,877		$	3,867,674		$	3,715,987		$	3,609,180

(1) Certain prior period amounts have been adjusted to conform to the current year presentation.

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	At or for the Quarters Ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
(Dollars in thousands)	2007			2007			2007			2007			2006
Period End Balances
Loans
Commercial:
Mortgages	$	278,821		$	276,995		$	265,560		$	271,817		$	282,019
Construction and development		60,361			48,899			43,755			33,092			32,233
Other		341,084			324,129			313,673			294,261			273,145
Total commercial		680,266			650,023			622,988			599,170			587,397
Residential real estate:
Mortgages		588,628			566,776			572,321			577,823			577,522
Homeowner construction		11,043			12,040			11,071			11,742			11,149
Total residential real estate		599,671			578,816			583,392			589,565			588,671
Consumer:
Home equity lines		144,429			139,732			139,256			142,548			145,676
Home equity loans		99,827			99,798			97,253			94,521			93,947
Other		49,459			46,124			46,285			44,396			44,295
Total consumer		293,715			285,654			282,794			281,465			283,918
Total loans	$	1,573,652		$	1,514,493		$	1,489,174		$	1,470,200		$	1,459,986
Deposits
Demand deposits	$	175,542		$	182,830		$	177,210		$	175,010		$	186,533
NOW accounts		164,944			172,378			174,715			176,006			175,479
Money market accounts		321,600			312,257			290,046			290,273			286,998
Savings accounts		176,278			189,157			196,105			204,465			205,998
Time deposits		807,841			799,265			831,013			837,838			822,989
Total deposits	$	1,646,205		$	1,655,887		$	1,669,089		$	1,683,592		$	1,677,997
Brokered deposits included in time deposits		129,798			130,017			159,297			163,089			175,618
Asset Quality Data
Allowance for Loan Losses
Balance at beginning of period	$	19,472		$	19,327		$	19,360		$	18,894		$	18,645
Provision charged to earnings		1,000			300			300			300			300
Net charge-offs		(195	)		(155	)		(333	)		166			(51	)
Balance at end of period	$	20,277		$	19,472		$	19,327		$	19,360		$	18,894
Loans 30 days or More Past Due
Commercial categories	$	4,726		$	2,239		$	7,224		$	6,935		$	5,807
Residential mortgages		2,100			3,266			1,697			914		$	1,299
Consumer loans		197			358			145			169			108
Total	$	7,023		$	5,863		$	9,066		$	8,018		$	7,214
Nonperforming Assets
Commercial mortgages	$	1,094		$	1,099		$	1,385		$	1,157		$	981
Commercial construction and development		–			–			–			–			–
Other commercial		1,781			581			645			1,021			831
Residential real estate		1,158			731			698			709			721
Consumer		271			262			241			216			190
Total nonaccrual loans	$	4,304		$	2,673		$	2,969		$	3,103		$	2,723
Other real estate owned, net		-			-			-			-			-
Total nonperforming assets	$	4,304		$	2,673		$	2,969		$	3,103		$	2,723
Loans 30 days or more past due to total loans		0.45	%		0.39	%		0.61	%		0.55	%		0.49	%
Nonperforming assets to total assets		0.17	%		0.11	%		0.12	%		0.13	%		0.11	%
Nonaccrual loans to total loans		0.27	%		0.18	%		0.20	%		0.21	%		0.19	%
Allowance for loan losses to nonaccrual loans		471.12	%		728.47	%		650.96	%		623.91	%		693.87	%
Allowance for loan losses to total loans		1.29	%		1.29	%		1.30	%		1.32	%		1.29	%

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	Years Ended
	December 31,			December 31,
(Dollars and shares in thousands, except per share amounts)	2007			2006
Operating Results
Net interest income	$	59,944		$	61,474
Provision for loan losses		1,900			1,200
Net realized gains on securities		455			443
Other noninterest income		45,054			41,740
Noninterest expenses		68,906			65,335
Income tax expense		10,847			12,091
Net income		23,800			25,031
Basic earnings per share	$	1.78		$	1.86
Diluted earnings per share	$	1.75		$	1.82
Dividends declared per share	$	0.80		$	0.76
Weighted average shares outstanding - basic		13,355.5			13,424.1
Weighted average shares outstanding - diluted		13,604.1			13,723.2
Shares outstanding at end of period		13,354.5			13,429.7
Key Ratios
Return on average assets		0.99	%		1.04	%
Return on average equity		13.48	%		14.99	%
Interest rate spread (taxable equivalent basis)		2.39	%		2.47	%
Net interest margin (taxable equivalent basis)		2.76	%		2.80	%
Allowance for Loan Losses
Balance at beginning of period	$	18,894		$	17,918
Provision charged to earnings		1,900			1,200
Net charge-offs		(517	)		(224	)
Balance at end of period	$	20,277		$	18,894
Net charge-offs (recoveries) to average loans		.03	%		.02	%
	Three Months			Year
	Ended			Ended
(Dollars in thousands)	Dec. 31, 2007			Dec. 31, 2007
Wealth Management Assets Under Administration (1)
Balance at beginning of period	$	4,025,877		$	3,609,180
Net investment appreciation (depreciation) and income		(11,751	)		272,398
Net customer cash flows		226			132,774
Balance at end of period	$	4,014,352		$	4,014,352

(1) Certain prior period amounts have been adjusted to conform to the current year presentation.

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Three months ended December 31,	2007							2006
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets
Residential real estate loans	$	592,025	$	8,069		5.41	%	$	592,055	$	7,732		5.18	%
Commercial and other loans		666,142		12,407		7.39	%		567,356		11,115		7.77	%
Consumer loans		288,975		4,910		6.74	%		280,118		4,929		6.98	%
Total loans		1,547,142		25,386		6.51	%		1,439,529		23,776		6.55	%
Federal funds sold and
other short-term investments		15,147		181		4.72	%		14,940		204		5.43	%
Taxable debt securities		608,827		7,967		5.19	%		670,523		8,210		4.86	%
Nontaxable debt securities		80,637		1,137		5.59	%		54,024		789		5.80	%
Corporate stocks and FHLBB stock		41,791		735		7.00	%		45,233		811		7.11	%
Total securities		746,402		10,020		5.33	%		784,720		10,014		5.06	%
Total interest-earning assets		2,293,544		35,406		6.12	%		2,224,249		33,790		6.03	%
Non interest-earning assets		170,781							171,361
Total assets	$	2,464,325						$	2,395,610
Liabilities and Shareholders’ Equity
NOW accounts	$	161,722	$	83		0.20	%	$	170,111	$	76		0.18	%
Money market accounts		324,685		3,217		3.93	%		306,036		3,037		3.94	%
Savings accounts		180,977		601		1.32	%		201,031		577		1.14	%
Time deposits		801,107		9,189		4.55	%		836,645		9,420		4.47	%
FHLBB advances		549,388		6,318		4.56	%		457,690		4,801		4.16	%
Junior subordinated debentures		22,681		338		5.91	%		22,681		338		5.91	%
Other		31,319		345		4.36	%		12,472		154		4.91	%
Total interest-bearing liabilities		2,071,879		20,091		3.85	%		2,006,666		18,403		3.64	%
Demand deposits		176,242							186,017
Other liabilities		34,298							26,482
Shareholders’ equity		181,906							176,445
Total liabilities and shareholders’ equity	$	2,464,325						$	2,395,610
Net interest income (FTE)			$	15,315						$	15,387
Interest rate spread						2.27	%						2.39	%
Net interest margin						2.65	%						2.74	%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

(Dollars in thousands)
Three months ended December 31,	2007		2006
Commercial and other loans	$	46	$	43
Nontaxable debt securities		362		275
Corporate stocks		70		93
Total	$	478	$	411

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Years ended December 31,	2007							2006
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets
Residential real estate loans	$	589,619	$	31,540		5.35	%	$	590,245	$	30,237		5.12	%
Commercial and other loans		626,309		47,713		7.62	%		564,310		43,409		7.69	%
Consumer loans		283,873		19,634		6.92	%		274,764		18,748		6.82	%
Total loans		1,499,801		98,887		6.59	%		1,429,319		92,394		6.46	%
Federal funds sold and
other short-term investments		16,759		831		4.96	%		14,548		721		4.96	%
Taxable debt securities		605,443		31,163		5.15	%		712,870		33,763		4.74	%
Nontaxable debt securities		77,601		4,368		5.63	%		42,977		2,486		5.79	%
Corporate stocks and FHLBB stock		42,544		3,047		7.16	%		48,643		3,205		6.59	%
Total securities		742,347		39,409		5.31	%		819,038		40,175		4.91	%
Total interest-earning assets		2,242,148		138,296		6.17	%		2,248,357		132,569		5.90	%
Non interest-earning assets		165,561							159,115
Total assets	$	2,407,709						$	2,407,472
Liabilities and Shareholders’ Equity
NOW accounts	$	166,580	$	285		0.17	%	$	173,137	$	302		0.17	%
Money market accounts		303,138		11,846		3.91	%		262,613		9,063		3.45	%
Savings accounts		194,342		2,619		1.35	%		198,040		1,464		0.74	%
Time deposits		821,951		37,672		4.58	%		856,979		36,153		4.22	%
FHLBB advances		489,229		21,641		4.42	%		509,611		20,916		4.10	%
Junior subordinated debentures		22,681		1,352		5.96	%		22,681		1,352		5.96	%
Other		23,990		1,075		4.48	%		8,627		410		4.76	%
Total interest-bearing liabilities		2,021,911		76,490		3.78	%		2,031,688		69,660		3.43	%
Demand deposits		177,342							185,322
Other liabilities		31,886							23,517
Shareholders’ equity		176,570							166,945
Total liabilities and shareholders’ equity	$	2,407,709						$	2,407,472
Net interest income (FTE)			$	61,806						$	62,909
Interest rate spread						2.39	%						2.47	%
Net interest margin						2.76	%						2.80	%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

(Dollars in thousands)
Years ended December 31,	2007		2006
Commercial and other loans	$	167	$	204
Nontaxable debt securities		1,385		868
Corporate stocks		310		363
Total	$	1,862	$	1,435