8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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

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)

April 25, 2011

WASHINGTON TRUST BANCORP, INC.

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

(Exact Name of Registrant as Specified in Charter)

Rhode Island	001-32991	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:

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

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

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

o 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 April 25, 2011, Washington Trust Bancorp, Inc. issued a press release in which it disclosed unaudited financial information related to first quarter 2011 consolidated earnings.  A copy of the press release relating to such announcement, dated April 25, 2011, 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 April 25, 2011*
	*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: April 25, 2011	By:	/s/ David V. Devault
		David V. Devault
		Senior Executive Vice President, Secretary and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	Press Release dated April 25, 2011*
* Filed herewith

EX-99.1

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:  April 25, 2011

FOR IMMEDIATE RELEASE

Washington Trust Announces First Quarter 2011 Earnings

Up 31% from First Quarter 2010

Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global SelectÒ; symbol: WASH), parent company of The Washington Trust Company, today announced first quarter 2011 net income of $6.8 million, or 42 cents per diluted share, up by 31% from the $5.2 million, or 32 cents per diluted share, reported for the first quarter of 2010.  As compared to the linked quarter, first quarter 2011 results declined by $411 thousand, or 2 cents per diluted share, reflecting decreased residential mortgage banking activity.

Joseph J. MarcAurele, Washington Trust Chairman, President and CEO, stated “Washington Trust posted solid results for the first quarter and I’m pleased with the momentum that we’ve maintained over the past several quarters.  All of our lines of business performed well and we are excited about the growth opportunities presented by our new Burlington, Massachusetts, mortgage office and the East Providence branch office, which will open later this year.”

Financial Highlights:

·   Net interest margin continued an upward trend to 3.16%, compared to 3.05% for the fourth quarter of 2010 and 2.78% for the first quarter of 2010.

·   Wealth management revenues increased by $242 thousand, or 4%, on a linked quarter basis and by $774 thousand, or 12%, from the first quarter of 2010.  Assets under administration increased by 4% in the quarter and by 6% in the last twelve months.

·   Due to an increase in market interest rates, residential mortgage refinancing and sales activity declined from the high levels experienced in latter half of 2010.  Net gains on loan sales and commissions on loans originated for others declined by $1.6 million on a linked quarter basis and by $35 thousand from the first quarter of 2010.

·   Total loan growth amounted to $34 million, or 2%, in the first quarter of 2011, with commercial loan growth of $29 million.

·   Total deposits grew by $13 million, or 1%, in the first quarter of 2011, including a $46 million, or 20%, increase in demand deposits.

-M O R E-

Washington Trust

Page Two, April 25, 2011

·   The overall level of nonperforming assets remained fairly stable in the quarter, with total nonperforming assets at 0.77% of total assets at March 31, 2011, compared to 0.79% at December 31, 2010.

Net Interest Income

Net interest income totaled $20.3 million for the first quarter of 2011, up by $74 thousand from the fourth quarter of 2010 and up by $2.3 million from the first quarter of 2010.

The net interest margin for the first quarter of 2011 was 3.16%, up by 11 basis points from the fourth quarter of 2010, reflecting a 7 basis point increase in the yield on interest-earning assets.  The net interest margin increased by 38 basis points over the first quarter of 2010, due in large part to a reduction in funding costs.

Noninterest Income

Noninterest income totaled $11.7 million for the first quarter of 2011, down by $1.7 million, or 13%, on a linked quarter basis, primarily due to lower levels of residential mortgage refinancing and sales activity.  On a year over year basis, noninterest income was up by $1.2 million, or 12%, reflecting increases in wealth management revenues and merchant processing fees.

Wealth management revenues for the first quarter of 2011 increased by $774 thousand, or 12%, over the first quarter of 2010.  Wealth management assets under administration totaled $4.119 billion at March 31, 2011, up by $152 million, or 4%, from December 31, 2010 and up by $250 million, or 6%, from March 31, 2010.

Merchant processing fees for the first quarter of 2011 were up by $338 thousand, or 21%, from the first quarter of 2010 primarily due to growth in the volume of transactions processed for existing and new customers.  Washington Trust also experienced a corresponding increase of $312 thousand, or 23%, in merchant processing costs (included in noninterest expenses), for third-party costs directly attributable to handling of merchant credit card transactions.

Noninterest Expenses

Noninterest expenses totaled $20.7 million for the first quarter of 2011.  In the fourth quarter of 2010 Washington Trust made a $350 thousand contribution to its charitable foundation.  Excluding this fourth quarter charitable contribution, noninterest expenses decreased by $706 thousand, or 3%, on a linked quarter basis, reflecting lower commissions and incentives and foreclosed property costs.  On a year over year basis, noninterest expenses were up by $1.1 million, or 5%.

-M O R E-

Washington Trust

Page Three, April 25, 2011

Income tax expense amounted to $3.0 million for the first quarter of 2011, compared to $3.2 million for the fourth quarter of 2010 and $2.1 million for the first quarter of 2010.  The effective tax rate for the first quarter was 30.5%, compared to 30.4% for the fourth quarter of 2010 and 29.1% for the first quarter of 2010.

Asset Quality

Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure or repossession) amounted to $22.3 million, or 0.77% of total assets, at March 31, 2011.  Nonperforming assets declined by $666 thousand from the balance of $23.0 million, or 0.79% of total assets, at December 31, 2010, due to a $1.5 million decrease in property acquired through foreclosure or repossession, which was offset, in part, by an $869 thousand net increase in nonaccrual loans.

At March 31, 2011, total past due loans amounted to $27.3 million, or 1.34% of total loans, up by $2.0 million from the $25.3 million, or 1.27% of total loans, at December 31, 2010.  The net increase in past due loans included one commercial real estate loan 37 days past due with a carrying value of $1.2 million that was also classified as a troubled debt restructured loan at March 31, 2011.  In April, payments were received on this loan, bringing it current with its restructured terms.

At March 31, 2011, loans classified as troubled debt restructurings totaled $21.1 million, down by $1.3 million from the $22.4 million balance at December 31, 2010, reflecting payoffs and declassification from troubled debt restructuring status.

The loan loss provision charged to earnings amounted to $1.5 million for the first quarter of 2011, unchanged from the fourth quarter 2010 and first quarter 2010 levels.  Net charge-offs remained relatively stable and amounted to $974 thousand in the first quarter of 2011 compared to $1.1 million in the fourth quarter of 2010 and $1.2 million in the first quarter of 2010.  The allowance for loan losses was $29.1 million, or 1.43% of total loans, at March 31, 2011, compared to 1.43% of total loans at December 31, 2010.

Loans

Total loans grew by $34 million, or 2%, in the first quarter and totaled $2 billion at March 31, 2011.  The growth was primarily in the commercial loan portfolio which increased by $29 million in the first quarter.

Deposits

Total deposits amounted to $2 billion at March 31, 2011, up by $13 million, or 1%, from the balance at December 31, 2010, including a $46 million increase in demand deposits.

-M O R E-

Washington Trust

Page Four, April 25, 2011

Capital Management

Capital levels remain comfortably above the regulatory minimums to be considered well capitalized, with total risk-based capital ratio of 12.92% at March 31, 2011 and 12.79% at December 31, 2010.  Total shareholder’s equity was $273.9 million at March 31, 2011, up by $5.0 million from the balance at December 31, 2010.

Dividends Declared

The Board of Directors declared a quarterly dividend of 22 cents per share for the quarter ended March 31, 2011.  This was an increase of one cent per share over the most recent dividend rate.  The dividend was paid on April 14, 2011 to shareholders of record on March 31, 2011.

Conference Call

Washington Trust will host a conference call on Monday, April 25, 2011 at 10:00 a.m. Eastern Time to discuss first quarter results.  This call is being webcast and can be accessed through the Investor Relations section of the Washington Trust web site, www.washtrust.com.  Individuals may dial in to the call at 1-877-317-6789.  The international dial-in number is 1-412-317-6789 and the Canada dial-in number is 1-866-605-3852.  A replay of the call will be posted in this same location on the web site shortly after the conclusion of the call.  To listen to a replay of the conference call, dial 1-877-344-7529.  For international access, dial 1-412-317-0088.  The Conference Number for either replay is 449909.  The replay will be available until 9:00 a.m. on May 10, 2011.

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, eastern 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 Corporation’s web site: www.washtrust.com.

- M O R E -

Washington Trust

Page Five, April 25, 2011

Forward-Looking Statements

This press release contains certain statements that are “forward-looking statements”.  We may also make written or oral forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees.  You can identify forward-looking statements by the use of the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “assume”, “outlook”, “will”, “should”, and other expressions that predict or indicate future events and trends and which do not relate to historical matters.  You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Washington Trust.  These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following, 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 Washington Trust’s competition, changes in legislation or regulation and accounting principles, policies and guidelines such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 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, 2010, as filed with the Securities and Exchange Commission and as updated by our Quarterly Reports on Form 10-Q, 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 any 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

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures.  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.  Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS (unaudited)
	March 31,		December 31,
(Dollars in thousands, except par value)	2011		2010
Assets:
Cash and due from banks	$	68,113	$	85,971
Other short-term investments		6,296		6,765
Mortgage loans held for sale		2,985		13,894
Securities available for sale, at fair value;
amortized cost $560,752 in 2011 and $578,897 in 2010		576,158		594,100
Federal Home Loan Bank stock, at cost		42,008		42,008
Loans:
Commercial and other		1,056,388		1,027,065
Residential real estate		649,157		645,020
Consumer		324,092		323,553
Total loans		2,029,637		1,995,638
Less allowance for loan losses		29,109		28,583
Net loans		2,000,528		1,967,055
Premises and equipment, net		26,010		26,069
Investment in bank-owned life insurance		52,320		51,844
Goodwill		58,114		58,114
Identifiable intangible assets, net		7,614		7,852
Other assets		52,126		55,853
Total assets	$	2,892,272	$	2,909,525
Liabilities:
Deposits:
Demand deposits	$	274,798	$	228,437
NOW accounts		228,502		241,974
Money market accounts		387,923		396,455
Savings accounts		223,599		220,888
Time deposits		934,024		948,576
Total deposits		2,048,846		2,036,330
Federal Home Loan Bank advances		469,235		498,722
Junior subordinated debentures		32,991		32,991
Other borrowings		21,467		23,359
Other liabilities		45,848		49,259
Total liabilities		2,618,387		2,640,661
Shareholders’ Equity:
Common stock of $.0625 par value; authorized 30,000,000 shares;
issued 16,233,587 shares in 2011 and 16,171,618 shares in 2010		1,015		1,011
Paid-in capital		86,348		84,889
Retained earnings		182,136		178,939
Accumulated other comprehensive income		4,386		4,025
Total shareholders’ equity		273,885		268,864
Total liabilities and shareholders’ equity	$	2,892,272	$	2,909,525

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
		Three Months Ended
		March 31,			March 31,
(Dollars and shares in thousands, except per share amounts)		2011			2010
Interest income:
Interest and fees on loans		$	24,259		$	23,968
Interest on securities:
Taxable			4,773			6,051
Nontaxable			769			769
Dividends on corporate stock and Federal Home Loan Bank stock			67			55
Other interest income			24			21
Total interest income			29,892			30,864
Interest expense:
Deposits			4,202			5,769
Federal Home Loan Bank advances			4,732			6,219
Junior subordinated debentures			390			630
Other interest expense			241			242
Total interest expense			9,565			12,860
Net interest income			20,327			18,004
Provision for loan losses			1,500			1,500
Net interest income after provision for loan losses			18,827			16,504
Noninterest income:
Wealth management services:
Trust and investment advisory fees			5,676			5,017
Mutual fund fees			1,123			1,110
Financial planning, commissions and other service fees			281			179
Wealth management services			7,080			6,306
Service charges on deposit accounts			932			849
Merchant processing fees			1,944			1,606
Card interchange fees			487			389
Income from bank-owned life insurance			476			439
Net gains on loan sales and commissions on loans originated for others			525			560
Net realized loss on securities			(29	)		–
Net gains on interest rate swap contracts			76			68
Equity in losses of unconsolidated subsidiaries			(144	)		(52	)
Other income			383			365
Noninterest income, excluding other-than-temporary impairment losses			11,730			10,530
Total other-than-temporary impairment losses on securities			(54	)		(2	)
Portion of loss recognized in other comprehensive income (before taxes)			21			(61	)
Net impairment losses recognized in earnings			(33	)		(63	)
Total noninterest income			11,697			10,467
Noninterest expense:
Salaries and employee benefits			11,828			11,501
Net occupancy			1,321			1,224
Equipment			1,049			997
Merchant processing costs			1,669			1,357
Outsourced services			872			840
FDIC deposit insurance costs			723			794
Legal, audit and professional fees			492			518
Advertising and promotion			353			364
Amortization of intangibles			238			291
Foreclosed property costs			166			36
Other expenses			2,029			1,755
Total noninterest expense			20,740			19,677
Income before income taxes			9,784			7,294
Income tax expense			2,984			2,122
Net income		$	6,800		$	5,172
Weighted average common shares outstanding – basic			16,197.2			16,057.7
Weighted average common shares outstanding – diluted			16,229.8			16,063.9
Per share information:	Basic earnings per common share	$	0.42		$	0.32
	Diluted earnings per common share	$	0.42		$	0.32
	Cash dividends declared per share	$	0.22		$	0.21

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	At or for the Quarters Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(Dollars and shares in thousands, except per share amounts)	2011			2010			2010			2010			2010
Financial Data:
Total assets	$	2,892,272		$	2,909,525		$	2,909,003		$	2,929,853		$	2,896,425
Total loans		2,029,637			1,995,638			2,011,148			1,972,498			1,937,524
Total securities		576,158			594,100			577,161			675,938			716,964
Total deposits		2,048,846			2,036,330			2,056,754			1,949,905			1,961,188
Total shareholders’ equity		273,885			268,864			267,109			265,411			259,529
Net interest income		20,327			20,253			20,101			18,833			18,004
Provision for loan losses		1,500			1,500			1,500			1,500			1,500
Noninterest income, excluding other-than-temporary
impairment losses		11,730			13,408			13,439			11,513			10,530
Net impairment losses recognized in earnings		(33	)		-			-			(354	)		(63	)
Noninterest expenses		20,740			21,796			22,855			20,983			19,677
Income tax expense		2,984			3,154			2,815			2,211			2,122
Net income		6,800			7,211			6,370			5,298			5,172
Share Data:
Basic earnings per common share	$	0.42		$	0.44		$	0.39		$	0.33		$	0.32
Diluted earnings per common share	$	0.42		$	0.44		$	0.39		$	0.33		$	0.32
Dividends declared per share	$	0.22		$	0.21		$	0.21		$	0.21		$	0.21
Book value per share	$	16.87		$	16.63		$	16.55		$	16.46		$	16.14
Tangible book value per share – Non-GAAP (1)	$	12.82		$	12.55		$	12.45		$	12.34		$	11.99
Market value per share	$	23.74		$	21.88		$	19.12		$	17.04		$	18.64
Shares outstanding at end of period		16,233.6			16,171.6			16,135.4			16,120.7			16,079.1
Weighted average common shares outstanding–basic		16,197.2			16,160.6			16,131.4			16,104.6			16,057.7
Weighted average common shares outstanding–diluted		16,229.8			16,182.7			16,136.3			16,111.3			16,063.9
Key Ratios:
Return on average assets		0.94	%		0.99	%		0.87	%		0.73	%		0.71	%
Return on average tangible assets – Non-GAAP (1)		0.96	%		1.01	%		0.89	%		0.74	%		0.73	%
Return on average equity		10.04	%		10.70	%		9.53	%		8.05	%		8.00	%
Return on average tangible equity – Non-GAAP (1)		13.26	%		14.17	%		12.67	%		10.78	%		10.80	%
Capital Ratios:
Tier 1 risk-based capital		11.65	% (i)		11.53	%		11.24	%		11.22	%		11.24	%
Total risk-based capital		12.92	% (i)		12.79	%		12.50	%		12.47	%		12.50	%
Tier 1 leverage ratio		8.49	% (i)		8.25	%		8.04	%		7.94	%		7.89	%
Equity to assets		9.47	%		9.24	%		9.18	%		9.06	%		8.96	%
Tangible equity to tangible assets – Non-GAAP(1)		7.36	%		7.14	%		7.07	%		6.95	%		6.81	%
(i) – estimated
Wealth Management Assets under
Administration (2):
Balance at beginning of period	$	3,967,207		$	3,744,632		$	3,626,871		$	3,869,502		$	3,735,646
Net investment appreciation (depreciation) & income		145,563			227,168			243,141			(250,445	)		99,121
Net customer cash flows		6,437			(4,593	)		(19,611	)		7,814			34,735
Other (3)		–			–			(105,769	)		–			–
Balance at end of period	$	4,119,207		$	3,967,207		$	3,744,632		$	3,626,871		$	3,869,502

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

(2)   Prior period amounts have been reclassified to conform to current period presentation.

(3)   In the third quarter of 2010, the contractual nature of a client relationship changed, which reduced the frequency and scope of wealth management services performed by Washington Trust.  While Washington Trust still maintains a consulting relationship with the client, management no longer considers these assets to be wealth management assets under administration.  This change in reported assets under administration did not result in any change to the reported amount of wealth management revenues.

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	For the Quarters Ended
	Mar. 31,	Dec. 31,	Sept. 30,	June 30,	Mar. 31,
	2011	2010	2010	2010	2010
Average Yield / Rate (taxable equivalent basis):
Assets:
Commercial and other loans	5.28%	5.22%	5.29%	5.23%	5.31%
Residential real estate loans, including
mortgage loans held for sale	4.79%	4.76%	4.94%	5.05%	5.19%
Consumer loans	3.93%	3.96%	3.99%	4.00%	3.99%
Total loans	4.91%	4.87%	4.97%	4.97%	5.05%
Cash, federal funds sold
and other short-term investments	0.22%	0.21%	0.20%	0.17%	0.24%
FHLBB stock	0.31%	–%	–%	–%	–%
Taxable debt securities	3.93%	3.79%	3.93%	3.93%	4.10%
Nontaxable debt securities	5.95%	5.76%	5.76%	5.82%	5.89%
Corporate stocks	8.07%	7.42%	7.72%	7.60%	7.58%
Total securities	4.23%	4.08%	4.19%	4.17%	4.33%
Total interest-earning assets	4.61%	4.54%	4.63%	4.64%	4.72%
Liabilities:
NOW accounts	0.10%	0.12%	0.12%	0.12%	0.13%
Money market accounts	0.33%	0.34%	0.40%	0.56%	0.61%
Savings accounts	0.14%	0.14%	0.14%	0.17%	0.18%
Time deposits	1.61%	1.65%	1.74%	1.94%	2.13%
FHLBB advances	4.04%	4.13%	4.16%	4.08%	4.26%
Junior subordinated debentures	4.79%	5.15%	5.82%	5.43%	7.74%
Other	4.23%	4.43%	4.59%	4.63%	4.68%
Total interest-bearing liabilities	1.67%	1.70%	1.84%	2.00%	2.17%
Interest rate spread (taxable equivalent basis)	2.94%	2.84%	2.79%	2.64%	2.55%
Net interest margin (taxable equivalent basis)	3.16%	3.05%	3.01%	2.86%	2.78%

	At March 31, 2011
	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost (1)		Gains		Losses			Value
Securities Available for Sale:
Obligations of U.S. government-sponsored enterprises	$	29,408	$	3,495	$	−		$	32,903
Mortgage-backed securities issued by U.S. government
agencies and U.S. government-sponsored enterprises		400,471		17,870		(753	)		417,588
States and political subdivisions		79,450		2,420		(227	)		81,643
Trust preferred securities:
Individual name issuers		30,610		−		(5,533	)		25,077
Collateralized debt obligations		4,428		−		(3,676	)		752
Corporate bonds		13,872		1,206		(3	)		15,075
Common stocks		659		147		−			806
Perpetual preferred stocks		1,854		460		−			2,314
Total securities available for sale	$	560,752	$	25,598	$	(10,192	)	$	576,158

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

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
		Period End Balances At
(Dollars in thousands)		3/31/2011		12/31/2010		9/30/2010		6/30/2010		3/31/2010
Loans:
Commercial:	Mortgages	$	551,069	$	518,623	$	522,355	$	510,315	$	493,102
	Construction & development		34,615		47,335		62,820		67,215		77,787
	Other		470,704		461,107		464,294		441,827		427,870
	Total commercial		1,056,388		1,027,065		1,049,469		1,019,357		998,759
Residential real estate:	Mortgages		636,916		634,739		622,975		610,245		597,481
	Homeowner construction		12,241		10,281		10,593		12,368		11,577
	Total residential real estate		649,157		645,020		633,568		622,613		609,058
Consumer:	Home equity lines		221,003		218,288		218,898		218,440		213,841
	Home equity loans		48,337		50,624		54,923		57,682		59,390
	Other		54,752		54,641		54,290		54,406		56,476
	Total consumer		324,092		323,553		328,111		330,528		329,707
	Total loans	$	2,029,637	$	1,995,638	$	2,011,148	$	1,972,498	$	1,937,524

	At March 31, 2011
(Dollars in thousands)	Balance		% of Total
Commercial Real Estate Loans by Property Location:
Rhode Island, Connecticut, Massachusetts	$	531,708		90.8	%
New York, New Jersey, Pennsylvania		40,469		6.9	%
New Hampshire		11,801		2.0	%
Other		1,706		0.3	%
Total commercial real estate loans (1)	$	585,684		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.

	At March 31, 2011
(Dollars in thousands)	Balance		% of Total
Residential Mortgages by Property Location:
Rhode Island, Connecticut, Massachusetts	$	619,932		95.5	%
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia		13,319		2.1	%
Ohio		7,489		1.2	%
California, Washington, Oregon		3,464		0.5	%
Colorado, New Mexico, Utah		2,102		0.3	%
Georgia		1,674		0.3	%
New Hampshire		702		0.1	%
Wyoming		475		0.0	%
Total residential mortgages	$	649,157		100.0	%

	Period End Balances At
(Dollars in thousands)	3/31/2011		12/31/2010		9/30/2010		6/30/2010		3/31/2010
Deposits:
Demand deposits	$	274,798	$	228,437	$	242,455	$	225,494	$	204,317
NOW accounts		228,502		241,974		236,775		234,014		196,905
Money market accounts		387,923		396,455		408,828		378,004		397,896
Savings accounts		223,599		220,888		210,271		209,616		202,236
Time deposits		934,024		948,576		958,425		902,777		959,834
Total deposits	$	2,048,846	$	2,036,330	$	2,056,754	$	1,949,905	$	1,961,188
Out-of-market brokered certificates of deposits
included in time deposits	$	51,778	$	52,347	$	69,385	$	94,641	$	88,748
In-market deposits, excluding out of market
brokered certificates of deposit	$	1,997,068	$	1,983,983	$	1,987,369	$	1,855,264	$	1,872,440

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	Period End Balances At
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(Dollars in thousands)	2011			2010			2010			2010			2010
Nonperforming Assets:
Commercial mortgages	$	6,068		$	6,624		$	6,426		$	6,680		$	8,933
Commercial construction and development		–			–			–			–			–
Other commercial		4,445			5,259			6,256			8,418			8,225
Residential real estate mortgages		8,265			6,414			6,080			6,850			6,395
Consumer		601			213			824			789			827
Total nonaccrual loans	$	19,379		$	18,510		$	19,586		$	22,737		$	24,380
Nonaccrual investment securities		752			806			841			872			1,154
Property acquired through foreclosure or repossession		2,163			3,644			2,612			2,338			1,974
Total nonperforming assets	$	22,294		$	22,960		$	23,039		$	25,947		$	27,508
Total past due loans to total loans		1.34	%		1.27	%		1.24	%		1.45	%		1.55	%
Nonperforming assets to total assets		0.77	%		0.79	%		0.79	%		0.89	%		0.95	%
Nonaccrual loans to total loans		0.95	%		0.93	%		0.97	%		1.15	%		1.26	%
Allowance for loan losses to nonaccrual loans		150.21	%		154.42	%		143.80	%		123.08	%		113.66	%
Allowance for loan losses to total loans		1.43	%		1.43	%		1.40	%		1.42	%		1.43	%
Troubled Debt Restructured Loans:
Accruing troubled debt restructured loans
Commercial mortgages	$	10,071		$	11,736		$	11,812		$	6,176		$	5,813
Other commercial		4,554			4,594			2,498			2,224			1,217
Residential real estate mortgages		2,724			2,863			2,870			2,234			2,622
Consumer		417			509			817			997			1,398
Accruing troubled debt restructured loans		17,766			19,702			17,997			11,631			11,050
Nonaccrual troubled debt restructured loans
Commercial mortgages		826			1,302			1,473			986			2,238
Other commercial		526			431			213			301			247
Residential real estate mortgages		1,785			948			823			381			887
Consumer		199			41			43			43			44
Nonaccrual troubled debt restructured loans		3,336			2,722			2,552			1,711			3,416
Total troubled debt restructured loans	$	21,102		$	22,424		$	20,549		$	13,342		$	14,466

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	Period End Balances At
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
(Dollars in thousands)	2011		2010		2010		2010		2010
Past Due Loans:
Loans 30–59 Days Past Due
Commercial mortgages	$	3,223	$	2,185	$	1,685	$	3,898	$	2,302
Other commercial loans		2,474		1,862		2,632		3,284		2,362
Residential real estate mortgages		2,986		3,073		2,828		2,680		1,549
Consumer loans		1,735		2,005		2,218		3,364		2,019
Loans 30–59 days past due	$	10,418	$	9,125	$	9,363	$	13,226	$	8,232
Loans 60–89 Days Past Due
Commercial mortgages	$	1,626	$	514	$	–	$	19	$	2,390
Other commercial loans		315		953		492		1,195		519
Residential real estate mortgages		1,345		1,477		430		861		1,035
Consumer loans		335		448		420		195		202
Loans 60-89 days past due	$	3,621	$	3,392	$	1,342	$	2,270	$	4,146
Loans 90 Days or more Past Due
Commercial mortgages	$	5,242	$	5,322	$	4,952	$	3,695	$	8,374
Other commercial loans		2,524		3,376		4,240		2,919		3,142
Residential real estate mortgages		5,165		4,041		4,696		5,942		5,559
Consumer loans		317		11		277		634		635
Loans 90 days or more past due	$	13,248	$	12,750	$	14,165	$	13,190	$	17,710
Total Past Due Loans
Commercial mortgages	$	10,091	$	8,021	$	6,637	$	7,612	$	13,066
Other commercial loans		5,313		6,191		7,364		7,398		6,023
Residential real estate mortgages		9,496		8,591		7,954		9,483		8,143
Consumer loans		2,387		2,464		2,915		4,193		2,856
Total past due loans	$	27,287	$	25,267	$	24,870	$	28,686	$	30,088
Nonaccrual loans included in past due loans	$	16,456	$	14,894	$	15,870	$	17,881	$	19,223

	For the Quarters Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(Dollars in thousands)	2011			2010			2010			2010			2010
Allowance for Loan Losses:
Balance at beginning of period	$	28,583		$	28,165		$	27,985		$	27,711		$	27,400
Provision charged to earnings		1,500			1,500			1,500			1,500			1,500
Charge-offs		(1,051	)		(1,396	)		(1,468	)		(1,263	)		(1,275	)
Recoveries		77			314			148			37			86
Balance at end of period	$	29,109		$	28,583		$	28,165		$	27,985		$	27,711
Net Loan Charge-Offs (Recoveries):
Commercial mortgages	$	333		$	226		$	(96	)	$	531		$	491
Other commercial		509			695			1,026			558			508
Residential real estate mortgages		118			(99	)		301			90			121
Consumer		14			260			89			47			69
Total	$	974		$	1,082		$	1,320		$	1,226		$	1,189

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 March 31,	2011							2010
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets:
Commercial and other loans	$	1,037,379	$	13,505		5.28	%	$	985,807	$	12,904		5.31	%
Residential real estate loans, including
mortgage loans held for sale		651,277		7,700		4.79	%		615,507		7,874		5.19	%
Consumer loans		324,046		3,144		3.93	%		329,312		3,239		3.99	%
Total loans		2,012,702		24,349		4.91	%		1,930,626		24,017		5.05	%
Cash, federal funds sold
and other short-term investments		43,945		24		0.22	%		35,770		21		0.24	%
FHLBB stock		42,008		32		0.31	%		42,008		–		–	%
Taxable debt securities		492,213		4,773		3.93	%		598,171		6,051		4.10	%
Nontaxable debt securities		79,452		1,166		5.95	%		79,582		1,156		5.89	%
Corporate stocks		2,513		50		8.07	%		4,013		75		7.58	%
Total securities		574,178		5,989		4.23	%		682,766		7,282		4.33	%
Total interest-earning assets		2,672,833		30,394		4.61	%		2,691,170		31,320		4.72	%
Non interest-earning assets		211,785							204,986
Total assets	$	2,884,618						$	2,896,156
Liabilities and Shareholders’ Equity:
NOW accounts	$	224,977	$	58		0.10	%	$	194,471	$	64		0.13	%
Money market accounts		399,312		323		0.33	%		409,214		617		0.61	%
Savings accounts		220,352		75		0.14	%		196,880		85		0.18	%
Time deposits		946,431		3,746		1.61	%		951,453		5,003		2.13	%
FHLBB advances		475,370		4,732		4.04	%		591,974		6,219		4.26	%
Junior subordinated debentures		32,991		390		4.79	%		32,991		630		7.74	%
Other		23,123		241		4.23	%		20,986		242		4.68	%
Total interest-bearing liabilities		2,322,556		9,565		1.67	%		2,397,969		12,860		2.17	%
Demand deposits		249,503							200,203
Other liabilities		41,568							39,506
Shareholders’ equity		270,991							258,478
Total liabilities and shareholders’ equity	$	2,884,618						$	2,896,156
Net interest income (FTE)			$	20,829						$	18,460
Interest rate spread						2.94	%						2.55	%
Net interest margin						3.16	%						2.78	%

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

(Dollars in thousands)
Three months ended March 31,	2011		2010
Commercial and other loans	$	90	$	49
Nontaxable debt securities		397		387
Corporate stocks		15		20
Total	$	502	$	456

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited)
	At or for the Quarters Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
(Dollars in thousands, except per share amounts)	2011			2010			2010			2010			2010
Calculation of Tangible Book Value per Share:
Total shareholders’ equity at end of period	$	273,885		$	268,864		$	267,109		$	265,411		$	259,529
Less:
Goodwill		58,114			58,114			58,114			58,114			58,114
Identifiable intangible assets, net		7,614			7,852			8,089			8,362			8,652
Total tangible shareholders’ equity at end of period	$	208,157		$	202,898		$	200,906		$	198,935		$	192,763
Shares outstanding at end of period		16,233.6			16,171.6			16,135.4			16,120.7			16,079.1
Book value per share – GAAP	$	16.87		$	16.63		$	16.55		$	16.46		$	16.14
Tangible book value per share – Non-GAAP	$	12.82		$	12.55		$	12.45		$	12.34		$	11.99
Calculation of Tangible Equity to Tangible Assets:
Total tangible shareholders’ equity at end of period	$	208,157		$	202,898		$	200,906		$	198,935		$	192,763
Total assets at end of period	$	2,892,272		$	2,909,525		$	2,909,003		$	2,929,853		$	2,896,425
Less:
Goodwill		58,114			58,114			58,114			58,114			58,114
Identifiable intangible assets, net		7,614			7,852			8,089			8,362			8,652
Total tangible assets at end of period	$	2,826,544		$	2,843,559		$	2,842,800		$	2,863,377		$	2,829,659
Equity to assets - GAAP		9.47	%		9.24	%		9.18	%		9.06	%		8.96	%
Tangible equity to tangible assets – Non-GAAP		7.36	%		7.14	%		7.07	%		6.95	%		6.81	%
Calculation of Return on Average Tangible Assets:
Net income	$	6,800		$	7,211		$	6,370		$	5,298		$	5,172
Total average assets	$	2,884,618		$	2,912,770		$	2,931,816		$	2,920,838		$	2,896,156
Less:
Average goodwill		58,114			58,114			58,114			58,114			58,114
Average identifiable intangible assets, net		7,730			7,967			8,216			8,503			8,794
Total average tangible assets	$	2,818,774		$	2,846,689		$	2,865,486		$	2,854,221		$	2,829,248
Return on average assets - GAAP		0.94	%		0.99	%		0.87	%		0.73	%		0.71	%
Return on average tangible assets – Non-GAAP		0.96	%		1.01	%		0.89	%		0.74	%		0.73	%
Calculation of Return on Average Tangible Equity:
Net income	$	6,800		$	7,211		$	6,370		$	5,298		$	5,172
Total average shareholders’ equity	$	270,991		$	269,570		$	267,431		$	263,138		$	258,478
Less:
Average goodwill		58,114			58,114			58,114			58,114			58,114
Average identifiable intangible assets, net		7,730			7,967			8,216			8,503			8,794
Total average tangible shareholders’ equity	$	205,147		$	203,489		$	201,101		$	196,521		$	191,570
Return on average shareholders’ equity - GAAP		10.04	%		10.70	%		9.53	%		8.05	%		8.00	%
Return on average tangible shareholders’ equity –   Non-GAAP		13.26	%		14.17	%		12.67	%		10.78	%		10.80	%