exhibit99.htm

EX-99.1 2 exhibit99.htm EXHIBIT 99.1 FOR FORM 8-K FOR QUARTER 2 2009 EARNINGS RELEASE DATED JULY 21, 2009 exhibit99.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: July 21, 2009

FOR IMMEDIATE RELEASE

Washington Trust Announces Second Quarter 2009 Earnings

Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2009 net income of $3.8 million, or 23 cents per diluted share, compared to second quarter 2008 net income of $6.1 million, or 45 cents per diluted share. For the six months ended June 30, 2009, net income amounted to $6.4 million, or 40 cents per diluted share, compared to $11.9 million, or 88 cents per diluted share, for the same period in 2008.

Earnings in the second quarter of 2009 were influenced by the following:

·	Federal Deposit Insurance Corp. (“FDIC”) deposit insurance premiums for the second quarter of 2009 were up by $1.9 million from the second quarter a year earlier. This increase included a special FDIC assessment of $1.35 million ($869 thousand, after tax; or 5 cents per diluted share).

·	The loan loss provision charged to earnings amounted to $3.0 million for the second quarter of 2009, compared to $1.4 million for the second quarter of 2008. The provision was based on management’s assessment of economic and credit conditions as well as growth in the loan portfolio.

·	No dividend was received from the Federal Home Loan Bank of Boston (FHLBB) in the second quarter of 2009. Dividend income on Washington Trust’s investment in FHLBB stock totaled $344 thousand in the second quarter of 2008.

Selected Second Quarter 2009 developments:

Wealth management revenues for the second quarter of 2009 were down by $1.7 million, or 22 percent, from the second quarter of 2008, primarily due to lower valuations in the financial markets. Assets under administration totaled $3.316 billion at June 30, 2009, down $607.3 million from the June 30, 2008 balance.

·	Net gains on loan sales and commissions on loans originated for others totaled $1.6 million for the second quarter of 2009, up by $1.1 million from the second quarter of 2008, due to strong residential mortgage refinancing and sales activity.

-M O R E-

Washington Trust

Page Two, July 21, 2009

·	Commercial loan growth continued at a good pace, amounting to $39.0 million, or 4 percent, in the second quarter of 2009. Commercial loans have increased $152.2 million, or 19 percent, from the balance at June 30, 2008.

·	Reflecting continued weak economic conditions, nonperforming assets amounted to $24.8 million, or 0.85% of total assets, at June 30, 2009 up from $17.5 million, or 0.60% of total assets, at March 31, 2009. Nonperforming assets were $8.8 million, or 0.30% of total assets, at December 31, 2008.

John C. Warren, Washington Trust Bancorp, Inc.’s Chairman and Chief Executive Officer, stated “The economy remains challenged both locally and nationally. In this environment we will continue to maintain our focus and discipline.”

RESULTS OF OPERATIONS

Net interest income for the second quarter of 2009 increased $302 thousand, or 2 percent, from the first quarter of 2009 and remained essentially flat compared to the second quarter a year ago. On a year-to-date basis, net interest income increased $937 thousand, or 3 percent, from 2008. No dividend has been received from the FHLBB in 2009. Dividend income on Washington Trust’s investment in FHLBB stock totaled $445 thousand and $344 thousand in the first and second quarters of 2008, respectively.

The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the second quarter of 2009 was 2.45%, up 6 basis points from the first quarter of 2009 and down 26 basis points from the second quarter a year ago. For the six months ended June 30, 2009, the net interest margin was 2.42%, down 23 basis points from the same period a year earlier. The quarter and year-to-date decreases in net interest margin from 2008 reflect the elimination of FHLBB dividend income and margin compression, in general, on core deposit rates following the Federal Reserve’s actions to reduce short-term interest rates in late 2008 and early 2009.

Total noninterest income for the second quarter of 2009 increased $4.4 million, or 56 percent, from the first quarter of 2009 and increased $144 thousand, or 1 percent, from the second quarter of 2008. Included in noninterest income in the first quarter of 2009 were net impairment losses of $2.0 million for investment securities deemed to be other-than-temporarily impaired. There were no impairment losses recognized in the second quarter of 2009. On a year-to-date basis, total noninterest income decreased by $3.0 million, or 13 percent, from 2008, reflecting declines in wealth management revenues and lower net realized gains on securities, partially offset by higher net gains on loan sales and commissions on loans originated for others.

- M O R E -

Washington Trust

Page Three, July 21, 2009

Wealth management revenues for the second quarter of 2009 increased $541 thousand, or 10 percent, from the first quarter of 2009 and decreased $1.7 million, or 22 percent, from the second quarter a year ago. Second quarter 2009 amounts included seasonal tax preparation fee revenues of $339 thousand. For the six months ended June 30, 2009, wealth management revenues were down $3.5 million, or 24 percent, from the same period in 2008. Wealth management revenues are largely dependent on the value of assets under administration and are closely tied to the performance of the financial markets. Assets under administration totaled $3.316 billion at June 30, 2009, up $358.4 million, or 12 percent, from March 31, 2009 and up $168.7 million, or 5 percent, from December 31, 2008. Assets under administration were down $607.3 million, or 15 percent, from June 30, 2008. The decline in assets under administration was primarily due to lower valuations in the financial markets.

Due to strong residential mortgage refinancing and sales activity, net gains on loan sales and commissions on loans originated for others for the second quarter of 2009 increased by $508 thousand from the first quarter of 2009 and by $1.1 million from the second quarter of 2008. On a year-to-date basis, net gains on loan sales and commissions on loans originated for others increased by $1.7 million from the same period in 2008.

Net realized gains on securities amounted to $257 thousand in the second quarter of 2009, compared to net realized gains of $57 thousand in the first quarter of 2009 and $1.1 million in the second quarter of 2008. Also included in noninterest income were net unrealized gains on interest rate swap contracts of $341 thousand in the second quarter of 2009, compared to $60 thousand in the first quarter of 2009 and $26 thousand in the second quarter a year ago.

Noninterest expenses for the second quarter of 2009 increased by $1.9 million, or 11 percent, from the first quarter of 2009 and by $2.3 million, or 13 percent, from the second quarter of 2008. FDIC deposit insurance premiums for the second quarter of 2009 were up $1.5 million from the first quarter of 2009 and $1.9 million from the second quarter a year earlier. A special FDIC assessment of $1.35 million was recorded in the second quarter of 2009. On a year-to-date basis, total noninterest expenses increased by $3.5 million, or 10 percent, from 2008, which included a $2.3 million increase in FDIC deposit insurance costs. In addition to the special assessment, the year over year increase in FDIC deposit insurance costs also reflects higher assessment rates.

- M O R E -

Washington Trust

Page Four, July 21, 2009

Income tax expense amounted to $1.5 million for the three months ended June 30, 2009, as compared to $1.1 million for the first quarter of 2009 and $2.8 million for the second quarter of 2008. The effective tax rate for the second quarter of 2009 was 28.1%, as compared to 29.3% for the first quarter of 2009 and 31.6% for the second quarter of 2008.

ASSET QUALITY

Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure) amounted to $24.8 million, or 0.85% of total assets, at June 30, 2009, compared to $17.5 million, or 0.60% of total assets, at March 31, 2009. Nonperforming assets were $8.8 million, or 0.30% of total assets, at December 31, 2008 and $6.2 million, or 0.23% of total assets, at June 30, 2008. Nonaccrual loans totaled $22.7 million at June 30, 2009, up $7.2 million in the second quarter of 2009. Included in this increase was one relationship in the commercial real estate category totaling $3.2 million and two relationships in other commercial loans totaling $3.7 million. Total nonaccrual loans were $7.8 million at December 31, 2008 and $6.2 million at June 30, 2008.

At June 30, 2009, total 30 day+ delinquencies amounted to $25.6 million, or 1.35% of total loans, up $3.5 million in the second quarter of 2009 and up $8.0 million from the balance at December 31, 2008, with the largest increase in the commercial loan category. Commercial loan delinquencies amounted to $17.6 million, or 1.85% of total commercial loans, at June 30, 2009, up $2.6 million in the second quarter of 2009 and up $6.0 million from the balance at December 31, 2008.

Total residential mortgage and consumer loan 30 day+ delinquencies amounted to $8.1 million, or 0.85% of these loans, at June 30, 2009, up $892 thousand in the second quarter of 2009 and up $2.0 million from the balance at December 31, 2008. Total 90 day+ delinquencies in the residential mortgage and consumer loan categories amounted to $3.8 million (10 loans) and $2 thousand (2 loans), respectively, at June 30, 2009. Washington Trust has never offered a subprime residential loan program.

The loan loss provision charged to earnings amounted to $3.0 million for the second quarter of 2009, compared to $1.7 million for the first quarter of 2009 and $1.4 million for the second quarter of 2008. For the six months ended June 30, 2009 and 2008, the loan loss provision totaled $4.7 million and $1.85 million, respectively. The provision for loan losses was based on management’s assessment of economic and credit conditions, with particular emphasis on commercial and commercial real estate categories, as well as growth

- M O R E -

Washington Trust

Page Five, July 21, 2009

in the loan portfolio. Net charge-offs amounted to $1.4 million in the second quarter of 2009, as compared to net charge-offs of $927 thousand in the first quarter of 2009 and $161 thousand in the second quarter of 2008. For the six months ended June 30, 2009 and 2008, net charge-offs totaled $2.4 million and $164 thousand, respectively.

We believe that the declining credit quality trend is primarily related to a general weakening in national and regional economic conditions and that this trend may continue for the next few quarters. Management will continue to assess the adequacy of the allowance for loan losses in accordance with its established policies. The allowance for loan losses was $26.1 million, or 1.38% of total loans, at June 30, 2009, compared to $23.7 million, or 1.29% of total loans, at December 31, 2008 and $22.0 million, or 1.29% of total loans, at June 30, 2008.

FINANCIAL CONDITION

Total loans grew by $25.3 million, or 1.4 percent, in the second quarter of 2009, due to growth in the commercial loan portfolio. Commercial loans increased $39.0 million, or 4.3 percent, in the second quarter of 2009 due primarily to increases in commercial real estate loans. During the first six months of 2009, total loans grew by $52.1 million, or 2.8 percent, with commercial loan growth of $66.9 million, or 7.6 percent.

The investment securities portfolio amounted to $776.4 million at June 30, 2009, down by $57.5 million in the second quarter of 2009 and down by $89.8 million from the balance at December 31, 2008. The largest component of the investment securities portfolio is mortgage-backed securities, all of which are issued by U.S. Government agencies or U.S. Government-sponsored enterprises. At June 30, 2009, the net unrealized gain position on the investment securities portfolio was $4.2 million, including gross unrealized losses of $20.0 million. Approximately 90% of the gross unrealized losses on the investment securities portfolio were concentrated in variable rate trust preferred securities issued by financial services companies.

Total deposits amounted to $1.884 billion at June 30, 2009, essentially flat compared to March 31, 2009 and up by $92.9 million, or 5 percent, from December 31, 2008. Excluding out-of-market brokered certificates of deposit, in-market deposits grew by $10.7 million during the second quarter of 2009. Demand deposits and NOW account balances increased by $24.0 million, saving account balances grew by $6.3 million and money market account balances declined by $20.9 million during the second quarter of 2009. During the first six months of 2009, in-market deposits increased by $129.7 million, which included $45.4 million in wealth management client money market deposits previously held in outside money market funds.

– M O R E –

Washington Trust

Page Six, July 21, 2009

FHLBB advances totaled $688.4 million at June 30, 2009, down by $34.7 million from March 31, 2009 and down by $141.2 million from December 31, 2008.

DIVIDENDS DECLARED

The Board of Directors declared a quarterly dividend of 21 cents per share for the quarter ended June 30, 2009. The dividend was paid on July 10, 2009 to shareholders of record on June 30, 2009.

CONFERENCE CALL

Washington Trust Chairman and Chief Executive Officer John C. Warren, and David V. Devault, Executive Vice President, Chief Financial Officer and Secretary, will host a conference call on Wednesday, July 22, 2009 at 8:30 a.m. (Eastern Time) to discuss Washington Trust’s second quarter results. This call is being webcast by SNL IR Solutions and can be accessed through the Investor Relations section of the Washington Trust website, www.washtrust.com, or may be accessed by calling (800) 860-2442, or (412) 858-4600 for international callers. A replay of the call will be posted in this same location on the website shortly after the conclusion of the call. To listen to a replay of the conference call, dial (877) 344-7529 and enter Conference ID #: 431996. The replay will be available until 9:00 a.m. on July 30, 2009.

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 SelectÒ Market under the symbol “WASH.” Investor information is available on the Washington Trust’s web site: www.washtrust.com.

– M O R E –

Washington Trust

Page Seven, July 21, 2009

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 Washington Trust could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits, reductions in the market value of wealth management assets under administration, changes in the value of securities and other assets, reductions in loan demand, changes in loan collectibility, default and charge-off rates, changes in the size and nature of the Washington Trust’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. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as filed with the Securities and Exchange Commission, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this press release, and Washington Trust assumes no obligation to update forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

SUPPLEMENTAL INFORMATION – EXPLANATION OF NON-GAAP FINANCIAL MEASURES

Reported amounts are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Washington Trust’s management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies.

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
	(unaudited)
	June 30,			December 31,
(Dollars in thousands)	2009			2008
Assets:
Cash and noninterest-bearing balances due from banks	$	29,355		$	11,644
Interest-bearing balances due from banks		17,875			41,780
Federal funds sold and securities purchased under resale agreements		–			2,942
Other short-term investments		3,031			1,824
Mortgage loans held for sale		6,139			2,543
Securities available for sale, at fair value;
amortized cost $772,283 in 2009 and $869,433 in 2008		776,435			866,219
Federal Home Loan Bank stock, at cost		42,008			42,008
Loans:
Commercial and other		947,238			880,313
Residential real estate		618,859			642,052
Consumer		325,157			316,789
Total loans		1,891,254			1,839,154
Less allowance for loan losses		26,051			23,725
Net loans		1,865,203			1,815,429
Premises and equipment, net		25,520			25,102
Accrued interest receivable		9,883			11,036
Investment in bank-owned life insurance		44,053			43,163
Goodwill		58,114			58,114
Identifiable intangible assets, net		9,536			10,152
Other assets		32,656			33,510
Total assets	$	2,919,808		$	2,965,466

Liabilities:
Deposits:
Demand deposits	$	187,830		$	172,771
NOW accounts		187,014			171,306
Money market accounts		356,726			305,879
Savings accounts		192,484			173,485
Time deposits		959,666			967,427
Total deposits		1,883,720			1,790,868
Dividends payable		3,365			3,351
Federal Home Loan Bank advances		688,431			829,626
Junior subordinated debentures		32,991			32,991
Other borrowings		22,039			26,743
Accrued expenses and other liabilities		46,969			46,776
Total liabilities		2,677,515			2,730,355

Shareholders’ Equity:
Common stock of $.0625 par value; authorized 30,000,000 shares;
issued 16,023,009 shares in 2009 and 16,018,868 shares in 2008		1,001			1,001
Paid-in capital		81,831			82,095
Retained earnings		165,591			164,679
Accumulated other comprehensive loss		(5,579	)		(10,458	)
Treasury stock, at cost; 21,077 shares in 2009 and 84,191 in 2008		(551	)		(2,206	)
Total shareholders’ equity		242,293			235,111
Total liabilities and shareholders’ equity	$	2,919,808		$	2,965,466

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Dollars and shares in thousands, except per share amounts)	Three Months					Six Months
Periods ended June 30,	2009		2008			2009			2008
Interest income:
Interest and fees on loans	$	24,147	$	24,406		$	48,286		$	49,376
Interest on securities:
Taxable		7,588		8,302			16,037			16,718
Nontaxable		778		786			1,558			1,566
Dividends on corporate stock and Federal Home Loan Bank stock		55		489			127			1,109
Other interest income		9		50			26			190
Total interest income		32,577		34,033			66,034			68,959
Interest expense:
Deposits		8,481		9,248			18,028			21,147
Federal Home Loan Bank advances		7,112		7,794			14,339			15,093
Junior subordinated debentures		479		509			958			847
Other interest expense		244		275			489			589
Total interest expense		16,316		17,826			33,814			37,676
Net interest income		16,261		16,207			32,220			31,283
Provision for loan losses		3,000		1,400			4,700			1,850
Net interest income after provision for loan losses		13,261		14,807			27,520			29,433
Noninterest income:
Wealth management services:
Trust and investment advisory fees		4,402		5,321			8,524			10,663
Mutual fund fees		993		1,445			1,908			2,786
Financial planning, commissions and other service fees		559		884			935			1,459
Wealth management services		5,954		7,650			11,367			14,908
Service charges on deposit accounts		1,201		1,208			2,314			2,368
Merchant processing fees		2,086		1,914			3,435			3,186
Income from bank-owned life insurance		447		453			891			900
Net gains on loan sales and commissions on loans originated for others		1,552		433			2,596			924
Net realized gains on securities		257		1,096			314			1,909
Net unrealized gains on interest rate swap contracts		341		26			401			145
Other income		465		528			884			870
Noninterest income, excluding other-than-temporary impairment losses		12,303		13,308			22,202			25,210
Total other-than-temporary impairment losses on securities		–		(1,149	)		(4,244	)		(2,007	)
Portion of loss recognized in other comprehensive income (before taxes)		–		–			2,253			–
Net impairment losses recognized in earnings		–		(1,149	)		(1,991	)		(2,007	)
Total noninterest income		12,303		12,159			20,211			23,203
Noninterest expense:
Salaries and employee benefits		10,359		10,411			20,834			20,754
Net occupancy		1,122		1,064			2,348			2,202
Equipment		1,036		977			2,011			1,921
Merchant processing costs		1,780		1,598			2,923			2,666
Outsourced services		568		742			1,354			1,378
Legal, audit and professional fees		664		430			1,339			973
FDIC deposit insurance costs		2,143		251			2,794			507
Advertising and promotion		491		467			792			853
Amortization of intangibles		308		326			616			652
Other expenses		1,858		1,788			3,708			3,290
Total noninterest expense		20,329		18,054			38,719			35,196
Income before income taxes		5,235		8,912			9,012			17,440
Income tax expense		1,470		2,817			2,577			5,529
Net income	$	3,765	$	6,095		$	6,435		$	11,911

Weighted average shares outstanding – basic		15,983.6		13,381.1			15,963.2			13,369.6
Weighted average shares outstanding – diluted		16,037.4		13,567.0			16,009.1			13,550.9
Per share information:
Basic earnings per share	$	0.24	$	0.45		$	0.40		$	0.89
Diluted earnings per share	$	0.23	$	0.45		$	0.40		$	0.88
Cash dividends declared per share	$	0.21	$	0.21		$	0.42		$	0.41

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)

	At or for the Quarters Ended
	June 30,			Mar 31,			Dec. 31,			Sept. 30,			June 30,
(Dollars in thousands, except per share amounts)	2009			2009			2008			2008			2008
Financial Data
Total assets	$	2,919,808		$	2,947,110		$	2,965,466		$	2,767,882		$	2,732,989
Total loans		1,891,254			1,865,954			1,839,154			1,769,041			1,705,650
Total securities		776,435			833,959			866,219			753,456			790,064
Total deposits		1,883,720			1,884,324			1,790,868			1,737,251			1,609,542
Total shareholders’ equity		242,293			238,727			235,111			184,762			186,422
Net interest income		16,261			15,959			17,586			16,644			16,207
Provision for loan losses		3,000			1,700			1,850			1,100			1,400
Noninterest income, excluding other-than-temporary
impairment losses		12,303			9,899			9,675			11,572			13,308
Net impairment losses recognized in earnings		-			(1,991	)		(2,948	)		(982	)		(1,149	)
Noninterest expenses		20,329			18,390			18,075			18,471			18,054
Income tax expense		1,470			1,107			167			1,623			2,817
Net income		3,765			2,670			4,221			6,040			6,095

Share Data
Basic earnings per share	$	0.24		$	0.17		$	0.27		$	0.45		$	0.45
Diluted earnings per share	$	0.23		$	0.17		$	0.27		$	0.44		$	0.45
Dividends declared per share	$	0.21		$	0.21		$	0.21		$	0.21		$	0.21
Book value per share	$	15.14		$	14.97		$	14.75		$	13.76		$	13.91
Tangible book value per share – Non-GAAP*	$	10.91		$	10.71		$	10.47		$	8.80		$	9.34
Market value per share	$	17.83		$	16.25		$	19.75		$	26.60		$	19.70

Shares outstanding at end of period		16,001.9			15,949.9			15,934.7			13,423.2			13,398.2
Weighted average shares outstanding – basic		15,983.6			15,942.7			15,765.4			13,409.5			13,381.1
Weighted average shares outstanding – diluted		16,037.4			15,997.8			15,871.6			13,588.3			13,566.7

Key Ratios
Return on average assets		0.52	%		0.36	%		0.59	%		0.88	%		0.92	%
Return on average tangible assets – Non-GAAP*		0.53	%		0.37	%		0.60	%		0.90	%		0.94	%
Return on average equity		6.22	%		4.50	%		7.31	%		12.94	%		12.88	%
Return on average tangible equity – Non-GAAP*		8.63	%		6.30	%		10.25	%		19.25	%		19.07	%

Capital Ratios
Tier 1 risk-based capital		10.98	% (i)		11.00	%		11.29	%		9.20	%		9.44	%
Total risk-based capital		12.23	% (i)		12.25	%		12.54	%		10.45	%		10.69	%
Tier 1 leverage ratio		7.53	% (i)		7.35	%		7.53	%		6.10	%		6.32	%
Equity to assets		8.30	%		8.10	%		7.93	%		6.68	%		6.82	%
Tangible equity to tangible assets – Non-GAAP*		6.12	%		5.93	%		5.76	%		4.38	%		4.68	%
(i) – estimated

Wealth Management Assets Under Administration
Balance at beginning of period	$	2,957,918		$	3,147,649		$	3,624,502		$	3,923,595		$	3,878,746
Net investment (depreciation) appreciation & income		313,999			(150,855	)		(466,461	)		(322,953	)		10,420
Net customer cash flows		44,391			(38,876	)		(10,392	)		23,860			34,429
Balance at end of period	$	3,316,308		$	2,957,918		$	3,147,649		$	3,624,502		$	3,923,595

* - See the section labeled “Supplemental Information – Non-GAAP Financial Measures” at the end of this document.

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)

	Six Months Ended
	June 30,			June 30,
(Dollars in thousands, except per share amounts)	2009			2008
Financial Data
Net interest income	$	32,220		$	31,283
Provision for loan losses		4,700			1,850
Noninterest income, excluding other-than-temporary impairment losses		22,202			25,210
Net impairment losses recognized in earnings		(1,991	)		(2,007	)
Noninterest expenses		38,719			35,196
Income tax expense		2,577			5,529
Net income		6,435			11,911

Share Data
Basic earnings per share	$	0.40		$	0.89
Diluted earnings per share	$	0.40		$	0.88
Dividends declared per share	$	0.42		$	0.41

Weighted average shares outstanding – basic		15,963.2			13,369.6
Weighted average shares outstanding – diluted		16,009.1			13,550.9

Key Ratios
Return on average assets		0.44	%		0.91	%
Return on average tangible assets – Non-GAAP*		0.45	%		0.93	%
Return on average equity		5.36	%		12.55	%
Return on average tangible equity – Non-GAAP*		7.48	%		18.58	%

Asset Quality Data
Allowance for Loan Losses
Balance at beginning of period	$	23,725		$	20,277
Provision charged to earnings		4,700			1,850
Charge-offs		(2,509	)		(326	)
Recoveries		135			162
Balance at end of period	$	26,051		$	21,963

Net Loan Charge-Offs
Commercial:
Mortgages	$	1,255		$	(68	)
Construction and development		-			-
Other		864			113
Residential:
Mortgages		159			33
Homeowner construction		-			-
Consumer		96			86
Total	$	2,374		$	164

Net charge-offs to average loans (annualized)		0.25	%		0.02	%

Wealth Management Assets Under Administration
Balance at beginning of period	$	3,147,649		$	4,014,352
Net investment (depreciation) appreciation & income		163,144			(191,495	)
Net customer cash flows		5,515			100,738
Balance at end of period	$	3,316,308		$	3,923,595

* - See the section labeled “Supplemental Information – Non-GAAP Financial Measures” at the end of this document.

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)

	For the Quarters Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(Dollars in thousands, except per share amounts)	2009			2009			2008			2008			2008
Average Yields (taxable equivalent basis)
Assets:
Residential real estate loans		5.38	%		5.47	%		5.50	%		5.54	%		5.55	%
Commercial and other loans		5.37	%		5.47	%		6.19	%		6.28	%		6.51	%
Consumer loans		4.19	%		4.29	%		5.00	%		5.38	%		5.48	%
Total loans		5.17	%		5.27	%		5.74	%		5.86	%		5.98	%
Cash, federal funds sold
and other short-term investments		0.27	%		0.26	%		0.30	%		1.63	%		1.64	%
Taxable debt securities		4.21	%		4.45	%		4.87	%		4.85	%		4.86	%
Nontaxable debt securities		5.80	%		5.86	%		5.64	%		5.63	%		5.67	%
Corporate stocks and FHLBB stock		0.64	%		0.83	%		3.29	%		3.58	%		4.46	%
Total securities		4.11	%		4.26	%		4.74	%		4.74	%		4.87	%
Total interest-earning assets		4.83	%		4.93	%		5.41	%		5.49	%		5.60	%
Liabilities:
NOW accounts		0.17	%		0.18	%		0.17	%		0.18	%		0.19	%
Money market accounts		0.98	%		1.55	%		1.91	%		1.79	%		1.79	%
Savings accounts		0.26	%		0.40	%		0.48	%		0.47	%		0.50	%
Time deposits		3.06	%		3.30	%		3.51	%		3.68	%		3.88	%
FHLBB advances		4.11	%		3.81	%		4.05	%		4.20	%		4.15	%
Junior subordinated debentures		5.82	%		5.89	%		6.13	%		6.31	%		6.34	%
Other		4.70	%		4.22	%		4.20	%		4.68	%		4.60	%
Total interest-bearing liabilities		2.66	%		2.83	%		3.09	%		3.16	%		3.18	%

Interest rate spread (taxable equivalent basis)		2.17	%		2.10	%		2.32	%		2.33	%		2.42	%
Net interest margin (taxable equivalent basis)		2.45	%		2.39	%		2.65	%		2.62	%		2.71	%

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)

		Period End Balances At
(Dollars in thousands)		6/30/2009		3/31/2009		12/31/2008		9/30/2008		6/30/2008
Loans
Commercial:	Commercial mortgages	$	439,182	$	412,817	$	407,904	$	394,085	$	361,623
	Construction and development		64,504		49,215		49,599		51,592		60,606
	Other		443,552		446,251		422,810		396,161		372,784
	Total commercial		947,238		908,283		880,313		841,838		795,013
Residential:	Mortgages		606,324		621,141		626,663		604,205		593,995
	Homeowner construction		12,535		15,996		15,389		14,124		14,356
	Total residential real estate		618,859		637,137		642,052		618,329		608,351
Consumer:	Home equity lines		195,612		183,058		170,662		158,837		152,339
	Home equity loans		70,806		79,881		89,297		93,690		94,316
	Other		58,739		57,595		56,830		56,347		55,631
	Total consumer		325,157		320,534		316,789		308,874		302,286
	Total loans	$	1,891,254	$	1,865,954	$	1,839,154	$	1,769,041	$	1,705,650

(Dollars in thousands)
	At June 30, 2009
Commercial Real Estate Loans by Property Location	Balance		% of Total
Rhode Island, Connecticut, Massachusetts	$	448,163		89.0	%
New York, New Jersey, Pennsylvania		40,254		8.0	%
New Hampshire, Maine		13,628		2.7	%
Other		1,641		0.3	%
Total commercial real estate loans (1)	$	503,686		100.0	%

(1)	Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.

(Dollars in thousands)
	At June 30, 2009
Residential Mortgages by Property Location	Balance		% of Total
Rhode Island, Connecticut, Massachusetts	$	556,617		89.9	%
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia		24,459		4.0	%
Ohio, Michigan		16,615		2.7	%
California, Washington, Oregon		11,625		1.9	%
Colorado, Texas, New Mexico, Utah		5,066		0.8	%
Georgia		2,529		0.4	%
New Hampshire, Vermont		1,367		0.2	%
Other		581		0.1	%
Total residential mortgages	$	618,859		100.0	%

	Period End Balances At
(Dollars in thousands)	6/30/2009		3/31/2009		12/31/2008		9/30/2008		6/30/2008
Deposits
Demand deposits	$	187,830	$	170,975	$	172,771	$	187,839	$	187,865
NOW accounts		187,014		179,903		171,306		164,829		170,733
Money market accounts		356,726		377,603		305,879		298,106		305,860
Savings accounts		192,484		186,152		173,485		171,856		177,490
Time deposits		959,666		969,691		967,427		914,621		767,594
Total deposits	$	1,883,720	$	1,884,324	$	1,790,868	$	1,737,251	$	1,609,542

Out-of-market brokered certificates of deposits
included in time deposits	$	151,175	$	162,463	$	187,987	$	187,925	$	113,725

In-market deposits, excluding out of market
brokered certificates of deposit	$	1,732,545	$	1,721,861	$	1,602,881	$	1,549,326	$	1,495,817

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)

(Dollars in thousands)	At June 30, 2009
	Amortized		Unrealized		Unrealized			Fair
Securities Available for Sale	Cost (1)		Gains		Losses			Value
U.S. Treasury obligations and obligations of
U.S. government-sponsored agencies	$	51,545	$	3,817	$	−		$	55,362
Mortgage-backed securities issued by U.S. government
agencies and U.S. government-sponsored enterprises		586,196		18,116		(956	)		603,356
States and political subdivisions		80,669		976		(554	)		81,091
Trust preferred securities:
Individual name issuers		30,544		−		(13,640	)		16,904
Collateralized debt obligations		6,142		−		(4,261	)		1,881
Corporate bonds		13,174		1,223		−			14,397
Common stocks		659		−		(40	)		619
Perpetual preferred stocks		3,354		−		(529	)		2,825
Total securities available for sale	$	772,283	$	24,132	$	(19,980	)	$	776,435

(1)	Net of other-than-temporary impairment losses recognized in earnings, other than such noncredit-related amounts reversed on January 1, 2009 in accordance with FASB Staff Position No. FAS 115-2 and FAS 124-2.

(Dollars in thousands)	At December 31, 2008
	Amortized		Unrealized		Unrealized			Fair
Securities Available for Sale	Cost (1)		Gains		Losses			Value
U.S. Treasury obligations and obligations of
U.S. government-sponsored agencies	$	59,022	$	5,355	$	−		$	64,377
Mortgage-backed securities issued by U.S. government
agencies and U.S. government-sponsored enterprises		675,159		12,543		(4,083	)		683,619
States and political subdivisions		80,680		1,348		(815	)		81,213
Trust preferred securities:
Individual name issuers		30,525		−		(13,732	)		16,793
Collateralized debt obligations		5,633		−		(3,693	)		1,940
Corporate bonds		12,973		603		−			13,576
Common stocks		942		50		−			992
Perpetual preferred stocks		4,499		2		(792	)		3,709
Total securities available for sale	$	869,433	$	19,901	$	(23,115	)	$	866,219

(1)	Net of other-than-temporary impairment losses recognized in earnings.

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS (unaudited)

The following is supplemental information concerning trust preferred investment securities:

	At June 30, 2009
	Credit Rating		Amortized	Unrealized		Fair
(Dollars in thousands)	Moody’s	S&P (b)	Cost (a)	Gains	Losses	Value
Trust preferred securities:
Individual name issuers (c):
JPMorgan Chase & Co.	A1	BBB+	$9,709	$ –	$(4,334)	$5,375
Bank of America Corporation	Baa3	B	5,721	–	(2,605)	3,116
Wells Fargo & Company	A3	A-	5,095	–	(2,387)	2,708
SunTrust Banks, Inc.	Baa2	BB+	4,162	–	(1,958)	2,205
Northern Trust Corporation	A2	A-	1,978	–	(952)	1,026
State Street Corporation	A2	BBB+	1,966	–	(330)	1,636
Huntington Bancshares Incorporated	Baa3	B	1,913	–	(1,074)	838
Total individual name issuers			30,544	–	(13,640)	16,904

Collateralized debt obligations (CDO):
Tropic CDO 1, tranche A4L (d)	Caa3		3,650	–	(2,241)	1,409
Preferred Term Securities [PreTSL] XXV, tranche C1 (e)	Ca		2,492	–	(2,020)	472
Total collateralized debt obligations			6,142	–	(4,261)	1,881
Total trust preferred securities			$36,686	$ –	$(17,901)	$18,785

(a)	Net of other-than-temporary impairment losses recognized in earnings, other than such noncredit-related amounts reversed on January 1, 2009 in accordance with FASB Staff Position No. FAS 115-2 and FAS 124-2.

(b)	Standard & Poor’s (“S&P”).

(c)	Consists of various series of trust preferred securities issued by seven corporate financial institutions.

(d)	This investment security is not rated by S&P. As of June 30, 2009, 12 of the 38 pooled institutions have invoked their original contractual right to defer interest payments. This investment security was placed on nonaccrual status as of March 31, 2009.

(e)

This investment security is not rated by S&P. As of June 30, 2009, 11 of the 73 pooled institutions have invoked their original contractual right to defer interest payments. In the fourth quarter of 2008, the tranche held by Washington Trust began deferring interest payments until future periods. This investment security was placed on nonaccrual status as of December 31, 2008.

The following is supplemental information concerning common and perpetual preferred stock investment securities:

	At June 30, 2009
	Amortized		Unrealized					Fair
(Dollars in thousands)	Cost (a)		Gains		Losses			Value
Common and perpetual preferred stocks
Common stock	$	659	$	–	$	(40	)	$	619
Perpetual preferred stocks:
Financials		2,354		–		(298	)		2,056
Utilities		1,000		–		(231	)		769
Total perpetual preferred stocks		3,354		–		(529	)		2,825
Total common and perpetual preferred stocks	$	4,013	$	–	$	(569	)	$	3,444

(a)	Net of other-than-temporary impairment losses recognized in earnings in accordance with FASB Staff Position No. FAS 115-2 and FAS 124-2.

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)

(Dollars in thousands)	For the Quarters Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Asset Quality Data	2009			2009			2008			2008			2008
Allowance for Loan Losses
Balance at beginning of period	$	24,498		$	23,725		$	22,631		$	21,963		$	20,724
Provision charged to earnings		3,000			1,700			1,850			1,100			1,400
Charge-offs		(1,483	)		(1,026	)		(776	)		(492	)		(219	)
Recoveries		36			99			20			60			58
Balance at end of period	$	26,051		$	24,498		$	23,725		$	22,631		$	21,963

Net Loan Charge-Offs
Commercial:
Mortgages	$	794		$	461		$	185		$	–		$	(43	)
Construction and development		–			–			–			–			–
Other		515			349			497			386			132
Residential:
Mortgages		127			32			62			9			33
Homeowner construction		–			–			–			–			–
Consumer		11			85			12			37			39
Total	$	1,447		$	927		$	756		$	432		$	161

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)

(Dollars in thousands)
	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
Asset Quality Data	2009		2009		2008		2008		2008
Past Due Loans
Loans 30–59 Days Past Due
Commercial real estate	$	2,635	$	2,027	$	3,466	$	2,036	$	5,300
Other commercial loans		2,255		3,537		2,024		1,524		1,382
Residential mortgages		1,820		3,000		3,113		1,619		1,624
Consumer loans		1,042		419		76		77		476
Loans 30–59 days past due	$	7,752	$	8,983	$	8,679	$	5,256	$	8,782

Loans 60–89 Days Past Due
Commercial real estate	$	3,537	$	194	$	6	$	143	$	1,078
Other commercial loans		514		461		785		114		1,013
Residential mortgages		1,324		165		1,452		296		1
Consumer loans		44		–		401		–		87
Loans 60-89 days past due	$	5,419	$	820	$	2,644	$	553	$	2,179

Loans 90 Days or more Past Due
Commercial real estate	$	2,760	$	4,269	$	1,826	$	1,870	$	981
Other commercial loans		5,861		4,453		3,408		3,264		2,644
Residential mortgages		3,826		3,575		973		188		408
Consumer loans		2		7		77		48		–
Loans 90 days or more past due	$	12,449	$	12,304	$	6,284	$	5,370	$	4,033

Total Past Due Loans
Commercial real estate	$	8,932	$	6,490	$	5,298	$	4,049	$	7,359
Other commercial loans		8,630		8,451		6,217		4,902		5,039
Residential mortgages		6,970		6,740		5,538		2,103		2,033
Consumer loans		1,088		426		554		125		563
Total past due loans	$	25,620	$	22,107	$	17,607	$	11,179	$	14,994

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)

(Dollars in thousands)
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
Asset Quality Data	2009			2009			2008			2008			2008
Nonperforming Assets
Commercial mortgages	$	5,995		$	4,384		$	1,942		$	1,986		$	1,991
Commercial construction and development		–			–			–			–			–
Other commercial		10,948			6,433			3,845			3,555			2,948
Residential real estate mortgages		5,168			4,057			1,754			962			1,072
Consumer		556			564			236			208			170
Total nonaccrual loans	$	22,667		$	15,438		$	7,777		$	6,711		$	6,181
Nonaccrual investment securities		1,881			1,928			633			–			–
Property acquired through foreclosure or repossession		236			170			392			113			–
Total nonperforming assets	$	24,784		$	17,536		$	8,802		$	6,824		$	6,181

Total past due loans to total loans		1.35	%		1.18	%		0.96	%		0.63	%		0.88	%
Nonperforming assets to total assets		0.85	%		0.60	%		0.30	%		0.25	%		0.23	%
Nonaccrual loans to total loans		1.20	%		0.83	%		0.42	%		0.38	%		0.36	%
Allowance for loan losses to nonaccrual loans		114.93	%		158.69	%		305.07	%		337.22	%		355.33	%
Allowance for loan losses to total loans		1.38	%		1.31	%		1.29	%		1.28	%		1.29	%


Troubled Debt Restructured Loans
Accruing troubled debt restructured loans
Commercial mortgages	$	1,576		$	–		$	–		$	–		$	1,673
Other commercial		323			59			–			–			–
Residential real estate mortgages		2,190			262			263			264			266
Consumer		780			479			607			216			8
Accruing troubled debt restructured loans		4,869			800			870			480			1,947
Nonaccrual troubled debt restructured loans
Other commercial		136			86			–			–			13
Residential real estate mortgages		367
Consumer		–			7			–			–			–
Nonaccrual troubled debt restructured loans		503			93			–			–			–
Total troubled debt restructured loans	$	5,372		$	893		$	870		$	480		$	1,960

The following tables present average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)

Three months ended June 30,	2009							2008
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets
Residential real estate loans	$	637,633	$	8,550		5.38	%	$	598,274	$	8,257		5.55	%
Commercial and other loans		916,329		12,270		5.37	%		749,468		12,135		6.51	%
Consumer loans		323,629		3,378		4.19	%		297,802		4,059		5.48	%
Total loans		1,877,591		24,198		5.17	%		1,645,544		24,451		5.98	%
Cash, federal funds sold
and other short-term investments		12,459		9		0.27	%		12,214		50		1.64	%
Taxable debt securities		723,199		7,588		4.21	%		687,461		8,302		4.86	%
Nontaxable debt securities		80,672		1,166		5.80	%		81,649		1,152		5.67	%
Corporate stocks and FHLBB stock		47,608		75		0.64	%		49,169		545		4.46	%
Total securities		863,938		8,838		4.10	%		830,493		10,049		4.87	%
Total interest-earning assets		2,741,529		33,036		4.83	%		2,476,037		35,500		5.60	%
Non interest-earning assets		182,473							165,806
Total assets	$	2,924,002						$	2,641,843
Liabilities and Shareholders’ Equity
NOW accounts	$	180,969	$	78		0.17	%	$	167,755	$	81		0.19	%
Money market accounts		376,559		917		0.98	%		315,075		1,399		1.79	%
Savings accounts		188,208		123		0.26	%		174,897		218		0.50	%
Time deposits		965,492		7,363		3.06	%		782,825		7,550		3.88	%
FHLBB advances		693,860		7,112		4.11	%		755,455		7,794		4.15	%
Junior subordinated debentures		32,991		479		5.82	%		32,311		509		6.34	%
Other		20,805		244		4.70	%		24,016		275		4.60	%
Total interest-bearing liabilities		2,458,884		16,316		2.66	%		2,252,334		17,826		3.18	%
Demand deposits		179,350							171,613
Other liabilities		43,498							28,607
Shareholders’ equity		242,270							189,289
Total liabilities and shareholders’ equity	$	2,924,002						$	2,641,843
Net interest income (FTE)			$	16,720						$	16,674
Interest rate spread						2.17	%						2.42	%
Net interest margin						2.45	%						2.71	%

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

(Dollars in thousands)

Three months ended June 30,	2009		2008
Commercial and other loans	$	51	$	45
Nontaxable debt securities		388		366
Corporate stocks		20		56
Total	$	459	$	467

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)

Six months ended June 30,	2009							2008
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets
Residential real estate loans	$	641,773	$	17,262		5.42	%	$	599,919	$	16,554		5.55	%
Commercial and other loans		906,946		24,381		5.42	%		728,270		24,356		6.73	%
Consumer loans		320,946		6,745		4.24	%		295,301		8,556		5.83	%
Total loans		1,869,665		48,388		5.22	%		1,623,490		49,466		6.13	%
Cash, federal funds sold
and other short-term investments		19,803		26		0.26	%		16,600		190		2.30	%
Taxable debt securities		747,087		16,037		4.33	%		678,081		16,718		4.96	%
Nontaxable debt securities		80,674		2,332		5.83	%		81,337		2,295		5.67	%
Corporate stocks and FHLBB stock		48,061		174		0.73	%		48,014		1,232		5.16	%
Total securities		895,625		18,569		4.18	%		824,032		20,435		4.99	%
Total interest-earning assets		2,765,290		66,957		4.88	%		2,447,522		69,901		5.74	%
Non interest-earning assets		178,593							167,258
Total assets	$	2,943,883						$	2,614,780
Liabilities and Shareholders’ Equity
NOW accounts	$	175,530	$	154		0.18	%	$	165,132	$	159		0.19	%
Money market accounts		370,846		2,314		1.26	%		321,476		3,951		2.47	%
Savings accounts		183,206		300		0.33	%		174,815		650		0.75	%
Time deposits		968,367		15,260		3.18	%		797,296		16,387		4.13	%
FHLBB advances		731,311		14,339		3.95	%		713,786		15,093		4.25	%
Junior subordinated debentures		32,991		958		5.86	%		27,496		847		6.20	%
Other		22,153		489		4.45	%		26,631		589		4.45	%
Total interest-bearing liabilities		2,484,404		33,814		2.74	%		2,226,632		37,676		3.40	%
Demand deposits		175,904							168,773
Other liabilities		43,666							29,571
Shareholders’ equity		239,909							189,804
Total liabilities and shareholders’ equity	$	2,943,883						$	2,614,780
Net interest income (FTE)			$	33,143						$	32,225
Interest rate spread						2.14	%						2.34	%
Net interest margin						2.42	%						2.65	%

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

(Dollars in thousands)

Six months ended June 30,	2009		2008
Commercial and other loans	$	102	$	90
Nontaxable debt securities		774		729
Corporate stocks		47		123
Total	$	923	$	942

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited)

	At of for the Quarters Ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(Dollars in thousands, except per share amounts)	2009			2009			2008			2008			2008
Calculation of tangible book value per share
Total shareholders’ equity at end of period	$	242,293		$	238,727		$	235,111		$	184,762		$	186,422
Less:
Goodwill		58,114			58,114			58,114			56,117			50,479
Identifiable intangible assets, net		9,536			9,844			10,152			10,461			10,781
Total tangible shareholders’ equity at end of period	$	174,643		$	170,769		$	166,845		$	118,184		$	125,162

Shares outstanding at end of period		16,001.9			15,949.9			15,934.7			13,423.2			13,398.2

Book value per share – GAAP	$	15.14		$	14.97		$	14.75		$	13.76		$	13.91
Tangible book value per share – Non-GAAP	$	10.91		$	10.71		$	10.47		$	8.80		$	9.34

Calculation of tangible equity to tangible assets
Total tangible shareholders’ equity at end of period	$	174,643		$	170,769		$	166,845		$	118,184		$	125,162

Total assets at end of period	$	2,919,808		$	2,947,110		$	2,965,466		$	2,767,882		$	2,732,989
Less:
Goodwill		58,114			58,114			58,114			56,117			50,479
Identifiable intangible assets, net		9,536			9,844			10,152			10,461			10,781
Total tangible assets at end of period	$	2,852,158		$	2,879,152		$	2,897,200		$	2,701,304		$	2,671,729

Equity to assets - GAAP		8.30	%		8.10	%		7.93	%		6.68	%		6.82	%
Tangible equity to tangible assets – Non-GAAP		6.12	%		5.93	%		5.76	%		4.38	%		4.68	%

Calculation of return on average tangible assets
Net income	$	3,765		$	2,670		$	4,221		$	6,040		$	6,095

Total average assets	$	2,924,002		$	2,963,985		$	2,867,086		$	2,754,769		$	2,641,843
Less:
Average goodwill		58,114			58,114			56,139			50,540			50,479
Average identifiable intangible assets, net		9,686			9,995			10,302			10,615			10,940
Total average tangible assets	$	2,856,202		$	2,895,876		$	2,800,645		$	2,693,614		$	2,580,424

Return on average assets - GAAP		0.52	%		0.36	%		0.59	%		0.88	%		0.92	%
Return on average tangible assets – Non-GAAP		0.53	%		0.37	%		0.60	%		0.90	%		0.94	%

Calculation of return on average tangible equity
Net income	$	3,765		$	2,670		$	4,221		$	6,040		$	6,095

Total average shareholders’ equity	$	242,270		$	237,522		$	231,101		$	186,664		$	189,289
Less:
Average goodwill		58,114			58,114			56,139			50,540			50,479
Average identifiable intangible assets, net		9,686			9,995			10,302			10,615			10,940
Total average tangible shareholders’ equity	$	174,470		$	169,413		$	164,660		$	125,509		$	127,870

Return on average shareholders’ equity - GAAP		6.22	%		4.50	%		7.31	%		12.94	%		12.88	%
Return on average tangible shareholders’ equity – Non-GAAP		8.63	%		6.30	%		10.25	%		19.25	%		19.07	%

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited)

	Six Months Ended
	June 30,			June 30,
(Dollars in thousands)	2009			2008
Calculation of return on average tangible assets
Net income	$	6,435		$	11,911

Total average assets	$	2,943,883		$	2,614,780
Less:
Average goodwill		58,114			50,479
Average identifiable intangible assets, net		9,840			11,103
Total average tangible assets	$	2,875,929		$	2,553,198

Return on average assets - GAAP		0.44	%		0.91	%
Return on average tangible assets – Non-GAAP		0.45	%		0.93	%


Calculation of return on average tangible equity
Net income	$	6,435		$	11,911

Total average shareholders’ equity	$	239,909		$	189,804
Less:
Average goodwill		58,114			50,479
Average identifiable intangible assets, net		9,840			11,103
Total average tangible shareholders’ equity	$	171,955		$	128,222

Return on average shareholders’ equity - GAAP		5.36	%		12.55	%
Return on average tangible shareholders’ equity – Non-GAAP		7.48	%		18.58	%