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:  October 20, 2008

FOR IMMEDIATE RELEASE

Washington Trust Announces Third Quarter 2008 Earnings

Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced third quarter 2008 net income of $6.0 million, or 44 cents per diluted share, compared to third quarter 2007 net income of $6.6 million, or 48 cents per diluted share.  For the nine months ended September 30, 2008, net income amounted to $18.0 million, or $1.32 per diluted share, substantially the same as the amounts reported for the nine months ended September 30, 2007.

Third Quarter 2008 Highlights:

·   Return on average equity for the third quarter and first nine months of 2008 was 12.94% and 12.68%, respectively.

·   Commercial loan growth continued at a firm pace for the eighth consecutive quarter, amounting to $46.8 million in the third quarter.  Commercial loans have increased $191.8 million, or 30 percent, from the balance at September 30, 2007.

·   The loan loss provision charged to earnings in the third quarter was $1.1 million, an increase of $800 thousand from the third quarter of 2007, largely due to growth in the loan portfolio as well as an ongoing evaluation of credit quality and general economic conditions.

·   Nonperforming assets remain at manageable levels at $6.8 million, or 0.25% of total assets, at September 30, 2008.

·   Impairment charges of $982 thousand ($669 thousand after tax; 5 cents per diluted share) were recognized on FHLMC and FNMA perpetual preferred stock holdings deemed to be other-than-temporarily impaired.

·   An income tax benefit of $841 thousand (6 cents per diluted share) was recognized based on an increase in the net deferred tax assets resulting from a recent change in a state corporate income tax rate and calculation method.

·   The Corporation remains well-capitalized with a total risk based-capital ratio of 10.43% at September 30, 2008.  On October 2nd the Corporation announced the issuance of $50 million in a private placement of its Common Stock.  The net proceeds of approximately $47 million were received on October 7th.

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Commenting on the quarter, John C. Warren, Chairman and Chief Executive Officer, said, “Despite the economic recession and the upheaval in the credit and financial markets, Washington Trust recorded another quarter with solid performance.  These are challenging times, and we will remain focused and disciplined as we move forward."

RESULTS OF OPERATIONS

Net interest income for the third quarter of 2008 increased $437 thousand, or 3 percent, from the second quarter of 2008 and $1.3 million, or 9 percent, from the third quarter a year ago.  The increase from the second quarter reflects higher earning-asset levels, while the increase from a year ago reflects growth in interest-earning assets and lower deposit costs.

The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the third quarter of 2008 was 2.62%, down 9 basis points from the second quarter of 2008 and down 19 basis points from the third quarter of 2007.  The decline in net interest margin reflects decreases in yields on variable rate commercial and consumer loans resulting from actions taken by the Federal Reserve to reduce short-term interest rates, with less commensurate reduction in deposit rates paid during the same period.  Approximately 5 basis points of the net interest margin decline from the second quarter of 2008 to the third quarter was attributable to several additional factors including the cost of temporarily maintaining lower yielding short-term assets for balance sheet management purposes, a lower amount of loan fee income recognized, and a reduction in the dividend yield earned on the Corporation’s investment in Federal Home Loan Bank of Boston stock.

Noninterest income for the third quarter of 2008 declined $1.6 million, or 13 percent, from the second quarter and $1.3 million, or 11 percent, from the third quarter of 2007.  The decline in noninterest income was largely due to the recognition of $982 thousand in write-downs on FHLMC and FNMA perpetual preferred stock holdings deemed to be other-than-temporarily impaired in the third quarter of 2008.  The impairment charges were included in net losses on securities in the Consolidated Statements of Income. There were no net gains or losses on securities in the third quarter of 2007.

Excluding net gains and losses on securities, noninterest income amounted to $11.6 million for the third quarter of 2008, down $640 thousand, or 5 percent, from the second quarter and down $278 thousand, or 2 percent, from the third quarter a year ago.  Wealth management revenues declined $459 thousand on a linked quarter basis and were essentially flat with the third quarter of 2007.  Second quarter 2008 amounts

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included seasonal tax preparation fee revenues of $335 thousand.  The remaining decline in wealth management revenues on a linked quarter basis was generally attributable to the decline in assets under administration.  Wealth management assets under administration totaled $3.625 billion at September 30, 2008, down $299.1 million, or 8 percent, in the third quarter of 2008.  Assets under administration were down $389.9 million, or 10 percent, from December 31, 2007 and down $401.4 million, or 10 percent, from September 30, 2007.  The decline in assets under administration was primarily due to lower valuations in the financial markets.

Noninterest expenses amounted to $18.5 million for the third quarter of 2008, up $417 thousand, or 2 percent, from the second quarter and up $1.2 million, or 7 percent, from the third quarter a year ago.  The increase in noninterest expenses on a linked quarter basis includes a seasonal increase of $259 thousand in merchant processing expenses.  Approximately 40 percent of the increase from a year ago represents costs attributable to our wealth management business and an increase in FDIC deposit insurance costs.  Washington Trust expects to make its annual contribution to its charitable foundation in the fourth quarter of this year.  The cost of this contribution is expected to be approximately $450 thousand.  Washington Trust made its 2007 annual contribution in the second quarter of that year.

Income tax expense amounted to $1.6 million for the three months ended September 30, 2008, as compared to $3.0 million for the same period in 2007.  In third quarter of 2008, an income tax benefit of $841 thousand was recognized based on an increase in net deferred tax assets resulting from a recent change in a state corporate income tax rate and calculation method.  Excluding this income tax benefit, the Corporation’s effective tax rate for the third quarter of 2008 was 32.2%, as compared to 31.6% for the second quarter and 31.3% for the third quarter of last year.  The Corporation currently expects the fourth quarter effective tax rate to be approximately 31.8%.

ASSET QUALITY

Nonperforming assets (nonaccrual loans and property acquired through foreclosure) amounted to $6.8 million, or 0.25% of total assets, at September 30, 2008, compared to $6.2 million, or 0.23% of total assets, at June 30, 2008 and $4.3 million, or 0.17% of total assets, at December 31, 2007.  Properties acquired through foreclosure amounted to $113 thousand at September 30, 2008.  There were no properties acquired through foreclosure on the balance at June 30, 2008 and December 31, 2007.

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Nonaccrual loans as a percent of total loans stood at 0.38% at September 30, 2008 compared to 0.36% of total loans at June 30, 2008 and 0.27% of total loans at December 31, 2007.  The increase in nonaccrual loans was largely due to certain commercial loan relationships moving into the non-accruing loan classification.

Total 30 day+ delinquencies amounted to $11.2 million, or 0.63% of total loans, at September 30, 2008, down $3.8 million in the third quarter and up $4.2 million in the first nine months of 2008.  The decline in 30 day+ delinquencies in the third quarter was primarily due to one commercial mortgage relationship of $3.5 million which was brought current by the borrower.  Commercial loans represent $9.0 million, or 80%, of total delinquencies at September 30, 2008.

Washington Trust has never offered a subprime residential loan program.  Total residential mortgage and consumer loan 30 day+ delinquencies decreased modestly in the third quarter and first nine months of 2008 and amounted to $2.2 million, or 0.24% of these loans, at September 30, 2008.  Total 90 day+ delinquencies in the residential mortgage and consumer loan categories amounted to $188 thousand (three loans) and $48 thousand (one loan), respectively, at September 30, 2008.  Total nonaccrual loans, which include the 90 day+ delinquencies, amounted to $962 thousand and $208 thousand in the residential mortgage and consumer loan categories, respectively, at September 30, 2008.

The Corporation’s loan loss provision charged to earnings amounted to $1.1 million for the third quarter of 2008, compared to $1.4 million for the second quarter of 2008 and $300 thousand for the third quarter of 2007.  The 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 and general economic conditions.  Net charge-offs amounted to $432 thousand in the third quarter of 2008, as compared to net charge-offs of $161 thousand in the second quarter and $155 thousand for the third quarter of 2007.  Included in the third quarter 2008 amount was $385 thousand of commercial loan net charge-offs.

The Corporation will continue to assess the adequacy of its allowance for loan losses in accordance with its established policies.  The allowance for loan losses was $22.6 million, or 1.28% of total loans, at September 30, 2008, compared to $22.0 million, or 1.29% of total loans, at June 30, 2008 and $20.3 million, or 1.29% of total loans, at December 31, 2007.

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FINANCIAL CONDITION

Total loans grew by $63.4 million, or 4 percent, in the third quarter and by $195.4 million, or 12 percent, in the first nine months of 2008.  Commercial loans rose by $46.8 million, or 6 percent, in the third quarter of 2008 and by $161.6 million, or 24 percent, in the first nine months of 2008.  In the third quarter of 2008, residential loans increased by $10 million, or 2 percent, and consumer loans grew by $6.6 million, or 2 percent.

The investment securities portfolio amounted to $753.5 million at September 30, 2008, down by $36.6 million in the third quarter of 2008, largely due to a decrease of $20.1 million in mortgage-backed securities.  The fair value of mortgage-backed securities amounted to $566.0 million at September 30, 2008.  All of the Corporation’s mortgage-backed securities are issued by U.S. Government agencies or U.S. Government-sponsored enterprises.  At September 30, 2008, the net unrealized losses on the investment securities portfolio amounted to $18.1 million and included gross unrealized losses of $22.8 million.  Approximately 54% of the gross unrealized losses on the investment securities portfolio were concentrated in variable rate trust preferred securities issued by financial services companies.  These trust preferred securities holdings consist of seven individual name issuers in the financial industry, including, where applicable, the impact of mergers and acquisitions of issuers subsequent to original purchase, and two pooled trust preferred securities in the form of collateralized debt obligations.  The pooled trust preferred holdings consist of trust preferred obligations of banking industry companies and, to a lesser extent, insurance industry companies.  For both of its pooled trust preferred holdings, Washington Trust’s investment is senior to one or more subordinated tranches that have first loss exposure.  The respective tranche of the pooled trust preferred securities held by the Corporation continues to accrue and make payments as expected, and have investment grade credit ratings.

Total deposits increased by $127.7 million in the third quarter and increased by $91.0 million in the first nine months of 2008.  Excluding out of market brokered certificates of deposit, in-market deposits grew by $53.5 million, or 4 percent, in the third quarter and $32.9 million, or 2 percent, from the balance at December 31, 2007.  In-market deposit growth in the third quarter of 2008 reflects increases in certificate of deposit balances, while NOW, savings and money market account balances declined.  Federal Home Loan Bank advances totaled $747.4 million at September 30, 2008, down $97.9 million in the third quarter and up $131.0 million from the balance at December 31, 2007.  During the third quarter of 2008, the Corporation recognized a liability of $5.6 million, with a corresponding increase in goodwill, related to the acquisition of Weston Financial Group, Inc. in August 2005.  This represents amounts earned under the terms of the

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acquisition agreement, which provides for a contingent payment earn-out in each year during the three-year period ending December31, 2008.

As previously reported on October 2, 2008, the Corporation announced that it had entered into a purchase agreement with select institutional investors pursuant to which it raised $50 million in a private placement of its own common stock.  Net proceeds were approximately $47 million after deducting offering-related fees and expenses.  The closing took place on October 7, 2008.  The Corporation issued a total of 2.5 million shares of common stock at a price of $20 per share in the private placement.  The Corporation has agreed to file, within 30 days of the closing, a registration statement with the Securities and Exchange Commission to register these shares for resale.  Approximately $65 thousand in legal costs were incurred in the third quarter in connection with this matter and recorded in noninterest expenses.  The Corporation expects to incur and record additional noninterest expenses of approximately $250 thousand in the fourth quarter of 2008.  Washington Trust intends to use the net proceeds from the capital raise for general corporate purposes and to support strategic growth initiatives in its commercial and wealth management business lines.

DIVIDENDS DECLARED

The Board of Directors declared a quarterly dividend of 21 cents per share for the quarter ended September 30, 2008.  The dividend was paid on October 10, 2008 to shareholders of record on September 30, 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 Tuesday, October 21, 2008 at 8:30 a.m. (Eastern Time) to discuss the Corporation’s third 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.  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 #: 423534.  The replay will be available until 9:00 a.m. on October 29, 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

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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 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, 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 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.  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, 2007, 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.  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)	September 30,			December 31,
	2008			2007
Assets:
Cash and noninterest-bearing balances due from banks	$	27,099		$	30,817
Interest-bearing balances due from banks		588			1,973
Federal funds sold and securities purchased under resale agreements		21,857			7,600
Other short-term investments		864			722
Mortgage loans held for sale		1,073			1,981
Securities available for sale, at fair value;
amortized cost $771,537 in 2008 and $750,583 in 2007		753,456			751,778
Federal Home Loan Bank stock, at cost		42,008			31,725
Loans:
Commercial and other		841,838			680,266
Residential real estate		618,329			599,671
Consumer		308,874			293,715
Total loans		1,769,041			1,573,652
Less allowance for loan losses		22,631			20,277
Net loans		1,746,410			1,553,375
Premises and equipment, net		24,314			25,420
Accrued interest receivable		10,980			11,427
Investment in bank-owned life insurance		42,714			41,363
Goodwill		56,117			50,479
Identifiable intangible assets, net		10,461			11,433
Other assets		29,941			19,847
Total assets	$	2,767,882		$	2,539,940
Liabilities:
Deposits:
Demand deposits	$	187,839		$	175,542
NOW accounts		164,829			164,944
Money market accounts		298,106			321,600
Savings accounts		171,856			176,278
Time deposits		914,621			807,841
Total deposits		1,737,251			1,646,205
Dividends payable		2,824			2,677
Federal Home Loan Bank advances		747,430			616,417
Junior subordinated debentures		32,991			22,681
Other borrowings		30,439			32,560
Accrued expenses and other liabilities		32,185			32,887
Total liabilities		2,583,120			2,353,427
Shareholders’ Equity:
Common stock of $.0625 par value; authorized 30,000,000 shares;
issued 13,518,868 shares in 2008 and 13,492,110 shares in 2007		845			843
Paid-in capital		35,184			34,874
Retained earnings		163,809			154,647
Accumulated other comprehensive loss		(12,570	)		(239	)
Treasury stock, at cost; 95,635 shares in 2008 and 137,652 in 2007		(2,506	)		(3,612	)
Total shareholders’ equity		184,762			186,513
Total liabilities and shareholders’ equity	$	2,767,882		$	2,539,940

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share amounts)	(unaudited)
	Three Months					Nine Months
Periods ended September 30,	2008			2007		2008			2007
Interest income:
Interest and fees on loans	$	25,520		$	25,032	$	74,896		$	73,380
Interest on securities:
Taxable		8,504			7,565		25,222			23,196
Nontaxable		778			781		2,344			2,208
Dividends on corporate stock and Federal Home Loan Bank stock		407			669		1,516			2,072
Other interest income		128			275		318			650
Total interest income		35,337			34,322		104,296			101,506
Interest expense:
Deposits		9,884			13,140		31,031			39,332
Federal Home Loan Bank advances		8,011			5,243		23,104			15,323
Junior subordinated debentures		524			338		1,371			1,014
Other interest expense		274			291		863			730
Total interest expense		18,693			19,012		56,369			56,399
Net interest income		16,644			15,310		47,927			45,107
Provision for loan losses		1,100			300		2,950			900
Net interest income after provision for loan losses		15,544			15,010		44,977			44,207
Noninterest income:
Wealth management services:
Trust and investment advisory fees		5,238			5,336		15,901			15,626
Mutual fund fees		1,383			1,386		4,169			4,000
Financial planning, commissions and other service fees		570			456		2,029			1,915
Wealth management services		7,191			7,178		22,099			21,541
Service charges on deposit accounts		1,215			1,214		3,583			3,559
Merchant processing fees		2,221			2,252		5,407			5,285
Income from bank-owned life insurance		452			376		1,352			1,166
Net gains on loan sales and commissions on loans originated for others		239			431		1,163			1,205
Net (losses) gains on securities		(982	)		−		(1,080	)		336
Other income		254			399		1,269			1,129
Total noninterest income		10,590			11,850		33,793			34,221
Noninterest expense:
Salaries and employee benefits		10,580			10,098		31,334			30,195
Net occupancy		1,123			1,021		3,325			3,076
Equipment		956			871		2,877			2,564
Merchant processing costs		1,857			1,916		4,523			4,493
Outsourced services		700			556		2,078			1,610
Advertising and promotion		376			466		1,229			1,467
Legal, audit and professional fees		626			444		1,599			1,298
Amortization of intangibles		320			341		972			1,057
Debt prepayment penalties		-			-		-			1,067
Other expenses		1,933			1,599		5,730			5,354
Total noninterest expense		18,471			17,312		53,667			52,181
Income before income taxes		7,663			9,548		25,103			26,247
Income tax expense		1,623			2,992		7,152			8,234
Net income	$	6,040		$	6,556	$	17,951		$	18,013
Weighted average shares outstanding - basic		13,409.5			13,323.6		13,383.0			13,358.1
Weighted average shares outstanding - diluted		13,588.3			13,564.1		13,564.5			13,612.7
Per share information:
Basic earnings per share	$	0.45		$	0.49	$	1.34		$	1.35
Diluted earnings per share	$	0.44		$	0.48	$	1.32		$	1.32
Cash dividends declared per share	$	0.21		$	0.20	$	0.62		$	0.60

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	At or for the Quarters Ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(Dollars in thousands, except per share amounts)	2008			2008			2008			2007			2007
Financial Data
Total assets	$	2,767,882		$	2,732,989		$	2,564,387		$	2,539,940		$	2,431,762
Total loans		1,769,041			1,705,650			1,598,582			1,573,652			1,514,493
Total securities		753,456			790,064			747,053			751,778			688,709
Total deposits		1,737,251			1,609,542			1,635,025			1,646,205			1,655,887
Total shareholders’ equity		184,762			186,422			191,219			186,513			177,897
Net income		6,040			6,095			5,816			5,787			6,556
Per Share Data
Basic earnings per share	$	0.45		$	0.45		$	0.44		$	0.43		$	0.49
Diluted earnings per share	$	0.44		$	0.45		$	0.43		$	0.43		$	0.48
Dividends declared per share	$	0.21		$	0.21		$	0.20		$	0.20		$	0.20
Book value per share	$	13.76		$	13.91		$	14.30		$	13.97		$	13.33
Tangible book value per share	$	8.80		$	9.34		$	9.70		$	9.33		$	8.66
Market value per share	$	26.60		$	19.70		$	24.82		$	25.23		$	26.97
Key Ratios
Return on average assets		0.88	%		0.92	%		0.90	%		0.94	%		1.10	%
Return on average tangible assets		0.90	%		0.94	%		0.92	%		0.96	%		1.12	%
Return on average equity		12.94	%		12.88	%		12.22	%		12.73	%		14.99	%
Return on average tangible equity		19.25	%		19.07	%		18.09	%		19.32	%		22.16	%
Capital Ratios
Tier 1 risk-based capital		9.18	%		9.44	%		9.23	%		9.10	%		9.11	%
Total risk-based capital		10.43	%		10.69	%		10.49	%		10.39	%		10.43	%
Tier 1 leverage ratio		6.09	%		6.32	%		5.93	%		6.09	%		6.11	%
Tangible equity to tangible assets		4.38	%		4.68	%		5.18	%		5.03	%		4.88	%
Average Yields (taxable equivalent basis)
Assets
Residential real estate loans		5.54	%		5.55	%		5.55	%		5.41	%		5.35	%
Commercial and other loans		6.28	%		6.51	%		6.95	%		7.39	%		7.62	%
Consumer loans		5.38	%		5.48	%		6.18	%		6.74	%		7.01	%
Total loans		5.86	%		5.98	%		6.28	%		6.51	%		6.62	%
Short-term investments, federal funds sold
and other		1.63	%		1.64	%		2.69	%		4.72	%		5.10	%
Taxable debt securities		4.85	%		4.86	%		5.06	%		5.19	%		5.16	%
Nontaxable debt securities		5.63	%		5.67	%		5.68	%		5.59	%		5.61	%
Corporate stocks and FHLBB stock		3.58	%		4.46	%		5.89	%		7.00	%		7.03	%
Total securities		4.74	%		4.87	%		5.11	%		5.33	%		5.31	%
Total interest-earning assets		5.49	%		5.60	%		5.89	%		6.12	%		6.20	%
Liabilities
NOW accounts		0.18	%		0.19	%		0.19	%		0.20	%		0.17	%
Money market accounts		1.79	%		1.79	%		3.13	%		3.93	%		3.90	%
Savings accounts		0.47	%		0.50	%		1.00	%		1.32	%		1.32	%
Time deposits		3.68	%		3.88	%		4.38	%		4.55	%		4.60	%
FHLBB advances		4.20	%		4.15	%		4.37	%		4.56	%		4.44	%
Junior subordinated debentures		6.31	%		6.34	%		5.99	%		5.91	%		5.91	%
Other		4.68	%		4.60	%		4.32	%		4.36	%		4.47	%
Total interest-bearing liabilities		3.16	%		3.18	%		3.63	%		3.85	%		3.78	%
Interest rate spread (taxable equivalent basis)		2.33	%		2.42	%		2.26	%		2.27	%		2.42	%
Net interest margin (taxable equivalent basis)		2.62	%		2.71	%		2.59	%		2.65	%		2.81	%

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
		At or for the Quarters Ended
		Sept.30,			June 30,		Mar. 31,			Dec. 31,			Sept. 30,
(Dollars in thousands)		2008			2008		2008			2007			2007
Wealth Management Assets Under Administration
Balance at beginning of period		$	3,923,595		$	3,878,746	$	4,014,352		$	4,025,877		$	3,867,674
Net investment (depreciation) appreciation & income			(321,488	)		10,420		(201,915	)		(11,751	)		122,424
Net customer cash flows			22,395			34,429		66,309			226			35,779
Balance at end of period		$	3,624,502		$	3,923,595	$	3,878,746		$	4,014,352		$	4,025,877
Period End Balances
Loans
Commercial:	Mortgages	$	394,085		$	361,623	$	309,684		$	278,821		$	276,995
	Construction and development		51,592			60,606		62,489			60,361			48,899
	Other		396,161			372,784		354,142			341,084			324,129
	Total commercial		841,838			795,013		726,315			680,266			650,023
Residential:	Mortgages		604,205			593,995		565,031			588,628			566,776
	Homeowner construction		14,124			14,356		12,861			11,043			12,040
	Total residential real estate		618,329			608,351		577,892			599,671			578,816
Consumer:	Home equity lines		158,837			152,339		146,471			144,429			139,732
	Home equity loans		93,690			94,316		96,883			99,827			99,798
	Other		56,347			55,631		51,021			49,459			46,124
	Total consumer		308,874			302,286		294,375			293,715			285,654
	Total loans	$	1,769,041		$	1,705,650	$	1,598,582		$	1,573,652		$	1,514,493
Deposits
Demand deposits		$	187,839		$	187,865	$	165,822		$	175,542		$	182,830
NOW accounts			164,829			170,733		174,146			164,944			172,378
Money market accounts			298,106			305,860		327,562			321,600			312,257
Savings accounts			171,856			177,490		177,110			176,278			189,157
Time deposits			914,621			767,594		790,385			807,841			799,265
Total deposits		$	1,737,251		$	1,609,542	$	1,635,025		$	1,646,205		$	1,655,887
Out of market brokered certificates of deposits
included in time deposits		$	187,925		$	113,725	$	126,972		$	129,798		$	130,017
In-market deposits, excluding out of market brokered
certificates of deposit		$	1,549,326		$	1,495,817	$	1,508,053		$	1,516,407		$	1,525,870

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
Securities Available for Sale	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
At September 30, 2008
U.S. Treasury obligations and obligations of U.S.
government-sponsored agencies	$	76,013	$	1,949	$	–		$	77,962
Mortgage-backed securities issued by U.S.
government and government-sponsored agencies		568,495		2,385		(4,904	)		565,976
States and political subdivisions		80,685		34		(4,091	)		76,628
Trust preferred securities		37,985		–		(12,201	)		25,784
Corporate bonds		1,748		–		(14	)		1,734
Common stocks		1,458		350		(36	)		1,772
Perpetual preferred stocks		5,153		–		(1,553	)		3,600
Total securities available for sale	$	771,537	$	4,718	$	(22,799	)	$	753,456
Securities Available for Sale	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
At December 31, 2007
U.S. Treasury obligations and obligations of U.S.
government-sponsored agencies	$	136,721	$	2,888	$	(10	)	$	139,599
Mortgage-backed securities issued by U.S.
government and government-sponsored agencies		469,197		2,899		(2,708	)		469,388
States and political subdivisions		80,634		499		(239	)		80,894
Trust preferred securities		37,995		–		(3,541	)		34,454
Corporate bonds		13,940		161		–			14,101
Common stocks		3,931		2,850		–			6,781
Perpetual preferred stocks		8,165		–		(1,604	)		6,561
Total securities available for sale	$	750,583	$	9,297	$	(8,102	)	$	751,778

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS (unaudited)

The following is supplemental information concerning the securities portfolio:

	At September 30, 2008
	Number		Credit		Amortized		Unrealized					Fair
(Dollars in thousands)	of Issuers		Rating (a)		Cost		Gains		Losses			Value
Trust preferred securities
Individual name issuers (b):		2	Aa		$	15,415	$	–	$	(3,480	)	$	11,935
		4		A		13,192		–		(3,068	)		10,124
		1	Baa			1,908		–		(1,175	)		733
Total individual name issuers		7				30,515		–		(7,723	)		22,792
Collateralized debt obligations	(c)		Baa			7,470		–		(4,478	)		2,992
Total trust preferred securities					$	37,985	$	–	$	(12,201	)	$	25,784
Corporate bonds		1	Baa		$	1,748	$	–	$	(14	)	$	1,734

(a) Source: Moody’s

(b) We own various series of trust preferred securities issued by seven corporate financial institutions.

(c) We own two pooled trust preferred securities in the form of collateralized debt obligations.  There are 73 issuers in one of the trust preferred CDO securities, and 38 issuers in the other.  As of September 30, 2008, 3 of the 73 pooled issuers for one security and 2 of the 38 pooled issuers for the other security have invoked their original contractual right to defer interest payments.  The respective tranche of the securities held by Washington Trust continues to accrue and make payments as expected, and have investment grade credit ratings.

	At September 30, 2008
	Amortized		Unrealized					Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
Common and preferred stocks
Common stock	$	1,458	$	350	$	(36	)	$	1,772
Perpetual preferred stock:
FNMA preferred stock		71		–		–			71
FHLMC preferred stock		18		–		–			18
Other preferred (financials)		4,064		–		(1,399	)		2,665
Other preferred (utilities)		1,000		–		(154	)		846
Total preferred		5,153		–		(1,553	)		3,600
Total common and preferred	$	6,611	$	350	$	(1,589	)	$	5,372

Washington Trust recorded impairment charges to earnings for equity securities deemed to be other-than-temporarily impaired in the amounts shown in the following table:

(Dollars in thousands)
	Three		Nine
Periods ended September 30, 2008	Months		Months
FNMA and FHLMC preferred stock	$	982	$	1,412
Other preferred (financials)		–		1,577
Total	$	982	$	2,989

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	At or for the Quarters Ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
(Dollars in thousands)	2008			2008			2008			2007			2007
Asset Quality Data
Allowance for Loan Losses
Balance at beginning of period	$	21,963		$	20,724		$	20,277		$	19,472		$	19,327
Provision charged to earnings		1,100			1,400			450			1,000			300
Charge-offs		(492	)		(219	)		(106	)		(225	)		(182	)
Recoveries		60			58			103			30			27
Balance at end of period	$	22,631		$	21,963		$	20,724		$	20,277		$	19,472
Past Due Loans
Loans 30–59 Days Past Due
Commercial categories	$	3,560		$	6,682		$	2,240		$	1,450		$	726
Residential mortgages		1,619			1,624			475			1,620			2,744
Consumer loans		77			476			43			73			282
Loans 30–59 days past due	$	5,256		$	8,782		$	2,758		$	3,143		$	3,752
Loans 60–89 Days Past Due
Commercial categories	$	257		$	2,091		$	3,715		$	1,313		$	166
Residential mortgages		296			1			344			39			220
Consumer loans		–			87			22			38			–
Loans 60-89 days past due	$	553		$	2,179		$	4,081		$	1,390		$	386
Loans 90 Days or more Past Due
Commercial categories	$	5,134		$	3,625		$	3,088		$	1,963		$	1,347
Residential mortgages		188			408			441			441			302
Consumer loans		48			–			36			86			76
Loans 90 days or more past due	$	5,370		$	4,033		$	3,565		$	2,490		$	1,725
Total Past Due Loans
Commercial categories	$	8,951		$	12,398		$	9,043		$	4,726		$	2,239
Residential mortgages		2,103			2,033			1,260			2,100			3,266
Consumer loans		125			563			101			197			358
Total past due loans	$	11,179		$	14,994		$	10,404		$	7,023		$	5,863
Nonperforming Assets
Commercial mortgages	$	1,986		$	1,991		$	1,300		$	1,094		$	1,099
Commercial construction and development		–			–			–			–			–
Other commercial		3,555			2,948			3,081			1,781			581
Residential real estate mortgages		962			1,072			1,111			1,158			731
Consumer		208			170			208			271			262
Total nonaccrual loans	$	6,711		$	6,181		$	5,700		$	4,304		$	2,673
Other real estate owned, net		113			–			–			-			-
Total nonperforming assets	$	6,824		$	6,181		$	5,700		$	4,304		$	2,673
Total past due loans to total loans		0.63	%		0.88	%		0.65	%		0.45	%		0.39	%
Nonperforming assets to total assets		0.25	%		0.23	%		0.22	%		0.17	%		0.11	%
Nonaccrual loans to total loans		0.38	%		0.36	%		0.36	%		0.27	%		0.18	%
Allowance for loan losses to nonaccrual loans		337.22	%		355.33	%		363.58	%		471.12	%		728.47	%
Allowance for loan losses to total loans		1.28	%		1.29	%		1.30	%		1.29	%		1.29	%

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS (unaudited)
	Nine Months Ended
	September 30,			September 30,
(Dollars and shares in thousands, except per share amounts)	2008			2007
Operating Results
Net interest income	$	47,927		$	45,107
Provision for loan losses		2,950			900
Net (losses) gains on securities		(1,080	)		336
Other noninterest income		34,873			33,885
Noninterest expenses		53,667			52,181
Income tax expense		7,152			8,234
Net income		17,951			18,013
Basic earnings per share	$	1.34		$	1.35
Diluted earnings per share	$	1.32		$	1.32
Dividends declared per share	$	0.62		$	0.60
Weighted average shares outstanding – basic		13,383.0			13,358.1
Weighted average shares outstanding – diluted		13,564.5			13,612.7
Shares outstanding at end of period		13,423.2			13,350.5
Key Ratios
Return on average assets		0.90	%		1.01	%
Return on average tangible assets		0.92	%		1.03	%
Return on average equity		12.68	%		13.74	%
Return on average tangible equity		18.80	%		20.37	%
Interest rate spread (taxable equivalent basis)		2.33	%		2.42	%
Net interest margin (taxable equivalent basis)		2.64	%		2.79	%
Allowance for Loan Losses
Balance at beginning of period	$	20,277		$	18,894
Provision charged to earnings		2,950			900
Charge-offs		(818	)		(553	)
Recoveries		222			231
Balance at end of period	$	22,631		$	19,472
Net charge-offs to average loans		.04	%		.02	%
Wealth Management Assets Under Administration
Balance at beginning of period	$	4,014,352		$	3,609,180
Net investment (depreciation) appreciation and income		(512,983	)		284,149
Net customer cash flows		123,133			132,548
Balance at end of period	$	3,624,502		$	4,025,877

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.  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 September 30,	2008							2007
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets
Residential real estate loans	$	619,288	$	8,629		5.54	%	$	584,223	$	7,886		5.35	%
Commercial and other loans		812,749		12,834		6.28	%		635,435		12,203		7.62	%
Consumer loans		303,745		4,106		5.38	%		282,472		4,988		7.01	%
Total loans		1,735,782		25,569		5.86	%		1,502,130		25,077		6.62	%
Short-term investments, federal funds sold
and other		31,213		128		1.63	%		21,375		275		5.10	%
Taxable debt securities		696,815		8,504		4.85	%		582,152		7,565		5.16	%
Nontaxable debt securities		80,833		1,144		5.63	%		80,998		1,145		5.61	%
Corporate stocks and FHLBB stock		49,830		448		3.58	%		42,129		748		7.03	%
Total securities		858,691		10,224		4.74	%		726,654		9,733		5.31	%
Total interest-earning assets		2,594,473		35,793		5.49	%		2,228,784		34,810		6.20	%
Non interest-earning assets		160,296							161,578
Total assets	$	2,754,769							2,390,362
Liabilities and Shareholders’ Equity
NOW accounts	$	166,379	$	77		0.18	%	$	166,271	$	70		0.17	%
Money market accounts		303,675		1,363		1.79	%		300,329		2,950		3.90	%
Savings accounts		173,654		203		0.47	%		194,439		646		1.32	%
Time deposits		891,803		8,241		3.68	%		817,379		9,474		4.60	%
FHLBB advances		758,858		8,011		4.20	%		468,384		5,243		4.44	%
Junior subordinated debentures		32,991		524		6.31	%		22,681		338		5.91	%
Other		23,251		274		4.68	%		25,857		291		4.47	%
Total interest-bearing liabilities		2,350,611		18,693		3.16	%		1,995,340		19,012		3.78	%
Demand deposits		187,238							188,495
Other liabilities		30,256							31,640
Shareholders’ equity		186,664							174,887
Total liabilities and shareholders’ equity	$	2,754,769						$	2,390,362
Net interest income (FTE)			$	17,100						$	15,798
Interest rate spread						2.33	%						2.42	%
Net interest margin						2.62	%						2.81	%

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

(Dollars in thousands)
Three months ended September 30,	2008		2007
Commercial and other loans	$	49	$	45
Nontaxable debt securities		366		364
Corporate stocks		41		79
Total	$	456	$	488

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
Nine months ended September 30,	2008							2007
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets
Residential real estate loans	$	606,422	$	25,183		5.55	%	$	588,808	$	23,471		5.33	%
Commercial and other loans		756,636		37,190		6.57	%		612,886		35,306		7.70	%
Consumer loans		298,136		12,662		5.67	%		282,154		14,724		6.98	%
Total loans		1,661,194		75,035		6.03	%		1,483,848		73,501		6.62	%
Short-term investments, federal funds sold
and other		21,506		318		1.97	%		17,302		650		5.03	%
Taxable debt securities		684,371		25,222		4.92	%		604,303		23,196		5.13	%
Nontaxable debt securities		81,168		3,440		5.66	%		76,578		3,238		5.65	%
Corporate stocks and FHLBB stock		48,624		1,679		4.61	%		42,796		2,310		7.21	%
Total securities		835,669		30,659		4.90	%		740,979		29,394		5.30	%
Total interest-earning assets		2,496,863		105,694		5.65	%		2,224,827		102,895		6.18	%
Non interest-earning assets		164,921							163,803
Total assets	$	2,661,784						$	2,388,630
Liabilities and Shareholders’ Equity
NOW accounts	$	165,551	$	236		0.19	%	$	168,217	$	202		0.16	%
Money market accounts		315,499		5,314		2.25	%		295,876		8,630		3.90	%
Savings accounts		174,425		853		0.65	%		198,845		2,017		1.36	%
Time deposits		829,028		24,628		3.97	%		828,976		28,483		4.59	%
FHLBB advances		728,920		23,104		4.23	%		468,956		15,323		4.37	%
Junior subordinated debentures		29,341		1,371		6.24	%		22,681		1,014		5.98	%
Other		25,496		863		4.52	%		21,521		730		4.53	%
Total interest-bearing liabilities		2,268,260		56,369		3.32	%		2,005,072		56,399		3.76	%
Demand deposits		174,973							177,713
Other liabilities		29,801							31,072
Shareholders’ equity		188,750							174,773
Total liabilities and shareholders’ equity	$	2,661,784						$	2,388,630
Net interest income (FTE)			$	49,325						$	46,496
Interest rate spread						2.33	%						2.42	%
Net interest margin						2.64	%						2.79	%

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

(Dollars in thousands)
Nine months ended September 30,	2008		2007
Commercial and other loans	$	139	$	121
Nontaxable debt securities		1,096		1,030
Corporate stocks		163		238
Total	$	1,398	$	1,389