exhibit99.htm

Selected first quarter 2010 developments:

·	Net interest income increased by $1.1 million, or 6%, from the fourth quarter of 2009 and by $2.0 million, or 13%, from the first quarter of 2009, reflecting improvement in the net interest margin.

·	Wealth management revenues for the first quarter of 2010 were $893 thousand, or 16%, higher than first quarter 2009. Assets under administration increased by 3% in the quarter and by 32% in the last twelve months.

Loan growth was modest at $18 million, or 1%, in the first quarter of 2010, with commercial loan growth of $14 million. In the last twelve months, commercial loans have grown by $90 million, or 10%. This was offset in part by a $28 million decline in residential mortgage balances in the last twelve months, reflecting continued weakness in the economy and housing markets.

·	Total in-market deposits grew by $43 million, or 2%, in the first quarter of 2010, due largely to increases in time deposits. In-market deposits have increased by $151 million, or 9% from March 31, 2009.

·	Nonperforming assets amounted to $27.5 million, or 0.95% of total assets, at March 31, 2010 down from $30.5 million, or 1.06% of total assets, at December 31, 2009. Total loans 30 days or more past due stood at $30.1 million at March 31, 2010, down by $1.5 million in the first quarter.

Net interest income for the first quarter of 2010 increased by $1.1 million, or 6%, from the fourth quarter of 2009 and $2.0 million, or 13%, from the first quarter last year. The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the first quarter of 2010 was 2.78%, up by 22 basis points from the fourth quarter of 2009 and by 39 basis points from the first quarter of 2009. These results are due in large part to lower funding costs, as indicated by a 66 basis point decline in the cost of interest-bearing liabilities from the first quarter of 2009. First quarter of 2010 net interest income was also favorably impacted by loan prepayment penalty and other fee income of $377 thousand (5 basis points of net interest margin) compared to $65 thousand (1 basis point of net interest margin) in the first quarter of 2009.

Wealth management revenues for the first quarter of 2010 increased by $893 thousand, or 16%, from the first quarter last year. Assets under administration totaled $3.9 billion at March 31, 2010, up by $131 million, or 3%, from December 31, 2009. The first quarter 2010 increase in assets under administration reflected net market value appreciation and income of $96 million and net client cash flows of $35 million. Wealth management related fees from sources that are not primarily derived from the value of assets under administration, including financial planning fees, commissions and other services, declined by $161 thousand, or 47%, from the fourth quarter 2009 due largely to lower commissions earned on annuity and insurance contracts.

Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure) amounted to $27.5 million, or 0.95% of total assets, at March 31, 2010, compared to $30.5 million, or 1.06% of total assets, at December 31, 2009. Nonaccrual loans totaled $24.4 million at March 31, 2010, down by $3.1 million in the first quarter of 2010, reflecting a net decrease of $3.5 million in nonaccrual commercial loans and a net increase of $357 thousand in nonaccrual residential mortgages. Property acquired through foreclosure or repossession amounted to $2.0 million at March 31, 2010 and December 31, 2009.

Overall credit quality continues to be affected by weaknesses in national and regional economic conditions. These conditions, including high unemployment levels, may continue for the next few quarters. Rhode Island’s economy may also be adversely affected by recent weather-related flooding events. 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 $27.7 million, or 1.43% of total loans, at March 31, 2010, compared to $27.4 million, or 1.43% of total loans, at December 31, 2009.

The investment securities portfolio amounted to $717 million at March 31, 2010, up by $25 million in the first quarter of 2010, largely due to purchases of debt securities. The investment securities portfolio decreased by $117 million from the balance at March 31, 2009 primarily due to management’s strategy to not reinvest the proceeds from maturities and pay-downs on mortgage-backed securities. 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 March 31, 2010, the net unrealized gain position on the investment securities portfolio was $16.9 million, including gross unrealized losses of $12.9 million. Approximately 94% of the gross unrealized losses on the investment securities portfolio were concentrated in variable rate trust preferred securities issued by financial services companies. During the first quarter of 2010, credit-related impairment losses of $63 thousand were charged to earnings on a pooled trust preferred debt security deemed to be other-than-temporarily impaired.

Washington Trust will host a conference call on Thursday, April 22, 2010 at 8:30 a.m. (Eastern Time) to discuss the Corporation’s first 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 #: 439477. The replay will be available until 9:00 a.m. on May 3, 2010.

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 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, 2009, 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.

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)
	March 31,		December 31,
(Dollars in thousands)	2010		2009
Assets:
Cash and noninterest-bearing balances due from banks	$	24,284	$	38,167
Interest-bearing balances due from banks		5,817		13,686
Other short-term investments		4,676		5,407
Mortgage loans held for sale		4,658		9,909
Securities available for sale, at fair value;
amortized cost $700,016 in 2010 and $677,676 in 2009		716,964		691,484
Federal Home Loan Bank stock, at cost		42,008		42,008
Loans:
Commercial and other		998,759		984,550
Residential real estate		609,058		605,575
Consumer		329,707		329,543
Total loans		1,937,524		1,919,668
Less allowance for loan losses		27,711		27,400
Net loans		1,909,813		1,892,268
Premises and equipment, net		27,365		27,524
Accrued interest receivable		9,628		9,137
Investment in bank-owned life insurance		45,396		44,957
Goodwill		58,114		58,114
Identifiable intangible assets, net		8,652		8,943
Property acquired through foreclosure or repossession, net		1,974		1,974
Other assets		37,076		40,895
Total assets	$	2,896,425	$	2,884,473

Liabilities:
Deposits:
Demand deposits	$	204,317	$	194,046
NOW accounts		196,905		202,367
Money market accounts		397,896		403,333
Savings accounts		202,236		191,580
Time deposits		959,834		931,684
Total deposits		1,961,188		1,923,010
Dividends payable		3,405		3,369
Federal Home Loan Bank advances		577,965		607,328
Junior subordinated debentures		32,991		32,991
Other borrowings		20,803		21,501
Accrued expenses and other liabilities		40,544		41,328
Total liabilities		2,636,896		2,629,527

Shareholders’ Equity:
Common stock of $.0625 par value; authorized 30,000,000 shares;
issued 16,079,116 shares in 2010 and 16,061,748 in 2009		1,005		1,004
Paid-in capital		82,798		82,592
Retained earnings		170,296		168,514
Accumulated other comprehensive income		5,430		3,337
Treasury stock, at cost; 19,185 in 2009		–		(501	)
Total shareholders’ equity		259,529		254,946
Total liabilities and shareholders’ equity	$	2,896,425	$	2,884,473

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

(Dollars and shares in thousands, except per share amounts)		(unaudited)
Three months ended March 31,		2010			2009
Interest income:
Interest and fees on loans		$	23,968		$	24,139
Interest on securities:
Taxable			6,051			8,449
Nontaxable			769			780
Dividends on corporate stock and Federal Home Loan Bank stock			55			72
Other interest income			21			17
Total interest income			30,864			33,457
Interest expense:
Deposits			5,769			9,547
Federal Home Loan Bank advances			6,219			7,227
Junior subordinated debentures			630			479
Other interest expense			242			245
Total interest expense			12,860			17,498
Net interest income			18,004			15,959
Provision for loan losses			1,500			1,700
Net interest income after provision for loan losses			16,504			14,259
Noninterest income:
Wealth management services:
Trust and investment advisory fees			5,017			4,122
Mutual fund fees			1,110			915
Financial planning, commissions and other service fees			179			376
Wealth management services			6,306			5,413
Service charges on deposit accounts			1,153			1,113
Merchant processing fees			1,606			1,349
Income from bank-owned life insurance			439			444
Net gains on loan sales and commissions on loans originated for others			560			1,044
Net realized gains on securities			–			57
Net gains on interest rate swap contracts			68			60
Other income			313			419
Noninterest income, excluding other-than-temporary impairment losses			10,445			9,899
Total other-than-temporary impairment losses on securities			(1,262	)		(4,244	)
Portion of loss recognized in other comprehensive income (before taxes)			1,199			2,253
Net impairment losses recognized in earnings			(63	)		(1,991	)
Total noninterest income			10,382			7,908
Noninterest expense:
Salaries and employee benefits			11,501			10,475
Net occupancy			1,224			1,226
Equipment			997			975
Merchant processing costs			1,357			1,143
FDIC deposit insurance costs			794			651
Outsourced services			755			786
Legal, audit and professional fees			518			675
Advertising and promotion			364			301
Amortization of intangibles			291			308
Other expenses			1,791			1,850
Total noninterest expense			19,592			18,390
Income before income taxes			7,294			3,777
Income tax expense			2,122			1,107
Net income		$	5,172		$	2,670

Weighted average shares outstanding – basic			16,057.7			15,942.7
Weighted average shares outstanding – diluted			16,101.5			15,997.8
Per share information:	Basic earnings per share	$	0.32		$	0.17
	Diluted earnings per share	$	0.32		$	0.17
	Cash dividends declared per share	$	0.21		$	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 in thousands, except per share amounts)	2010			2009			2009			2009			2009
Financial Data
Total assets	$	2,896,425		$	2,884,473		$	2,888,065		$	2,919,808		$	2,947,110
Total loans		1,937,524			1,919,668			1,906,565			1,891,254			1,865,954
Total securities		716,964			691,484			732,646			776,435			833,959
Total deposits		1,961,188			1,923,010			1,894,170			1,883,720			1,884,324
Total shareholders’ equity		259,529			254,946			252,146			242,293			238,727
Net interest income		18,004			16,946			16,726			16,261			15,959
Provision for loan losses		1,500			2,000			1,800			3,000			1,700
Noninterest income, excluding other-than-temporary
impairment losses		10,445			11,649			11,504			12,303			9,899
Net impairment losses recognized in earnings		(63	)		(679	)		(467	)		-			(1,991	)
Noninterest expenses		19,592			19,257			19,192			20,329			18,390
Income tax expense		2,122			1,911			1,858			1,470			1,107
Net income		5,172			4,748			4,913			3,765			2,670

Share Data
Basic earnings per share	$	0.32		$	0.30		$	0.31		$	0.24		$	0.17
Diluted earnings per share	$	0.32		$	0.30		$	0.31		$	0.23		$	0.17
Dividends declared per share	$	0.21		$	0.21		$	0.21		$	0.21		$	0.21
Book value per share	$	16.14		$	15.89		$	15.73		$	15.14		$	14.97
Tangible book value per share – Non GAAP*	$	11.99		$	11.71		$	11.53		$	10.91		$	10.71
Market value per share	$	18.64		$	15.58		$	17.52		$	17.83		$	16.25

Shares outstanding at end of period		16,079.1			16,042.6			16,026.6			16,001.9			15,949.9
Weighted average shares outstanding – basic		16,057.7			16,035.4			16,016.8			15,983.6			15,942.7
Weighted average shares outstanding – diluted		16,101.5			16,082.0			16,074.5			16,037.4			15,997.8

Key Ratios
Return on average assets		0.71	%		0.66	%		0.68	%		0.52	%		0.36	%
Return on average tangible assets – Non GAAP*		0.73	%		0.67	%		0.69	%		0.53	%		0.37	%
Return on average equity		8.00	%		7.47	%		7.94	%		6.22	%		4.50	%
Return on average tangible equity – Non GAAP*		10.80	%		10.16	%		10.91	%		8.63	%		6.30	%

Capital Ratios
Tier 1 risk-based capital		11.24	% (i)		11.14	%		11.06	%		10.98	%		11.00	%
Total risk-based capital		12.50	% (i)		12.40	%		12.31	%		12.23	%		12.25	%
Tier 1 leverage ratio		7.89	% (i)		7.82	%		7.68	%		7.53	%		7.35	%
Equity to assets		8.96	%		8.84	%		8.73	%		8.30	%		8.10	%
Tangible equity to tangible assets – Non GAAP*		6.81	%		6.67	%		6.55	%		6.12	%		5.93	%
(i) – estimated

Wealth Management Assets Under Administration
Balance at beginning of period	$	3,770,193		$	3,603,424		$	3,316,308		$	2,957,918		$	3,147,649
Net investment appreciation (depreciation) & income		95,855			88,690			295,257			313,999			(150,855	)
Net customer cash flows		34,735			78,079			(8,141	)		44,391			(38,876	)
Balance at end of period	$	3,900,783		$	3,770,193		$	3,603,424		$	3,316,308		$	2,957,918

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

	For the Quarters Ended
	Mar. 31,	Dec. 31,	Sept. 30,	June 30,	Mar. 31,
(Dollars in thousands, except per share amounts)	2010	2009	2009	2009	2009
Average Yields (taxable equivalent basis)
Assets:
Residential real estate loans	5.19%	5.17%	5.22%	5.38%	5.47%
Commercial and other loans	5.31%	5.19%	5.26%	5.37%	5.47%
Consumer loans	3.99%	4.06%	4.15%	4.19%	4.29%
Total loans	5.05%	4.99%	5.06%	5.17%	5.27%
Cash, federal funds sold
and other short-term investments	0.23%	0.19%	0.28%	0.27%	0.26%
FHLBB stock	–%	–%	–%	–%	–%
Taxable debt securities	4.10%	4.10%	4.19%	4.21%	4.45%
Nontaxable debt securities	5.89%	5.74%	5.73%	5.80%	5.86%
Corporate stocks	6.05%	5.68%	7.02%	5.40%	6.15%
Total securities	4.33%	4.30%	4.38%	4.37%	4.59%
Total interest-earning assets	4.72%	4.70%	4.76%	4.83%	4.93%
Liabilities:
NOW accounts	0.13%	0.18%	0.19%	0.17%	0.18%
Money market accounts	0.61%	0.82%	0.91%	0.98%	1.55%
Savings accounts	0.18%	0.22%	0.25%	0.26%	0.40%
Time deposits	2.13%	2.52%	2.74%	3.06%	3.30%
FHLBB advances	4.26%	4.35%	4.18%	4.11%	3.81%
Junior subordinated debentures	7.75%	5.33%	6.56%	5.82%	5.89%
Other	4.66%	4.68%	4.71%	4.70%	4.22%
Total interest-bearing liabilities	2.17%	2.40%	2.54%	2.66%	2.83%

Interest rate spread (taxable equivalent basis)	2.55%	2.30%	2.22%	2.17%	2.10%
Net interest margin (taxable equivalent basis)	2.78%	2.56%	2.51%	2.45%	2.39%

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

		Period End Balances At
(Dollars in thousands)		3/31/2010		12/31/2009		9/30/2009		6/30/2009		3/31/2009
Loans
Commercial:	Mortgages	$	493,102	$	496,996	$	484,478	$	439,182	$	412,817
	Construction and development		77,787		72,293		68,069		64,504		49,215
	Other		427,870		415,261		423,775		443,552		446,251
	Total commercial		998,759		984,550		976,322		947,238		908,283
Residential:	Mortgages		597,481		593,981		595,270		606,324		621,141
	Homeowner construction		11,577		11,594		9,303		12,535		15,996
	Total residential real estate		609,058		605,575		604,573		618,859		637,137
Consumer:	Home equity lines		213,841		209,801		200,512		195,612		183,058
	Home equity loans		59,390		62,430		66,439		70,806		79,881
	Other		56,476		57,312		58,719		58,739		57,595
	Total consumer		329,707		329,543		325,670		325,157		320,534
	Total loans	$	1,937,524	$	1,919,668	$	1,906,565	$	1,891,254	$	1,865,954


	Period End Balances At
(Dollars in thousands)	3/31/2010		12/31/2009		9/30/2009		6/30/2009		3/31/2009
Deposits
Demand deposits	$	204,317	$	194,046	$	198,712	$	187,830	$	170,975
NOW accounts		196,905		202,367		185,772		187,014		179,903
Money market accounts		397,896		403,333		376,100		356,726		377,603
Savings accounts		202,236		191,580		190,707		192,484		186,152
Time deposits		959,834		931,684		942,879		959,666		969,691
Total deposits	$	1,961,188	$	1,923,010	$	1,894,170	$	1,883,720	$	1,884,324

Out-of-market brokered certificates of deposits
included in time deposits	$	88,748	$	93,684	$	102,383	$	151,175	$	162,463

In-market deposits, excluding out of market
brokered certificates of deposit	$	1,872,440	$	1,829,326	$	1,791,787	$	1,732,545	$	1,721,861

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

(Dollars in thousands)	At March 31, 2010
	Amortized		Unrealized		Unrealized			Fair
Securities Available for Sale	Cost (1)		Gains		Losses			Value
Obligations of U.S. government-sponsored enterprises	$	56,575	$	3,586	$	(66	)	$	60,095
Mortgage-backed securities issued by U.S. government
agencies and U.S. government-sponsored enterprises		511,242		22,078		(367	)		532,953
States and political subdivisions		79,469		2,120		(215	)		81,374
Trust preferred securities:
Individual name issuers		30,572		−		(8,418	)		22,154
Collateralized debt obligations		4,876		−		(3,722	)		1,154
Corporate bonds		13,270		1,486		−			14,756
Common stocks		658		156		−			814
Perpetual preferred stocks		3,354		438		(128	)		3,664
Total securities available for sale	$	700,016	$	29,864	$	(12,916	)	$	716,964


(Dollars in thousands)	At December 31, 2009
	Amortized		Unrealized		Unrealized			Fair
Securities Available for Sale	Cost (1)		Gains		Losses			Value
Obligations of U.S. government-sponsored enterprises	$	41,565	$	3,675	$	−		$	45,240
Mortgage-backed securities issued by U.S. government
agencies and U.S. government-sponsored enterprises		503,115		20,808		(477	)		523,446
States and political subdivisions		80,183		2,093		(214	)		82,062
Trust preferred securities:
Individual name issuers		30,563		−		(9,977	)		20,586
Collateralized debt obligations		4,966		−		(3,901	)		1,065
Corporate bonds		13,272		1,434		−			14,706
Common stocks		658		111		−			769
Perpetual preferred stocks		3,354		396		(140	)		3,610
Total securities available for sale	$	677,676	$	28,517	$	(14,709	)	$	691,484

	At March 31, 2010
	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.	A2	BBB+	$9,717	$ –	$(2,072)	$7,645
Bank of America Corporation	Baa3	BB	5,728	–	(1,636)	4,092
Wells Fargo & Company	Baa1/Baa2	A-	5,102	–	(1,629)	3,473
SunTrust Banks, Inc.	Baa3	BB	4,164	–	(1,240)	2,924
Northern Trust Corporation	A3	A-	1,979	–	(515)	1,464
State Street Corporation	A3	BBB+	1,968	–	(518)	1,450
Huntington Bancshares Incorporated	Ba1	B	1,914	–	(808)	1,106
Total individual name issuers			30,572	–	(8,418)	22,154

Collateralized debt obligations (CDO):
Tropic CDO 1, tranche A4L (d)	Ca		3,593	–	(2,524)	1,069
Preferred Term Securities [PreTSL] XXV, tranche C1 (e)	Ca		1,283	–	(1,198)	85
Total collateralized debt obligations			4,876	–	(3,722)	1,154
Total trust preferred securities			$35,448	$ –	$(12,140)	$23,308

(d)

This investment security is not rated by S&P. As of March 31, 2010, 16 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. During the quarter ended March 31, 2009, an adverse change occurred in the expected cash flows for this instrument indicating that, based on cash flow forecasts with regard to timing of deferrals and potential future recovery of deferred payments, default rates, and other matters, the Corporation will not receive all contractual amounts due under the instrument and will not recover the entire cost basis of the security. The Corporation had concluded that these conditions warranted a conclusion of other-than-temporary impairment for this holding as of March 31, 2009 and recognized credit-related impairment losses of $1.4 million in earnings in the first quarter of 2009.

(e)

This investment security is not rated by S&P. As of March 31, 2010, 20 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. During the quarter ended September 30, 2009, an adverse change occurred in the expected cash flows for this instrument indicating that, based on cash flow forecasts with regard to timing of deferrals and potential future recovery of deferred payments, default rates, and other matters, Washington Trust will not receive all contractual amounts due under the instrument and will not recover the entire cost basis of the security. The Corporation had concluded that these conditions warrant a conclusion of other-than-temporary impairment for this holding as of September 30, 2009 and recognized credit-related impairment losses of $467 thousand in earnings in the third quarter of 2009. During the quarter ended December 31, 2009, the Corporation recognized additional credit-related impairment losses on this security of $679 thousand. The analysis of the expected cash flows for this security as of March 31, 2010 resulted in an additional credit-related impairment loss of $63 thousand being recognized in earnings in the first quarter of 2010.

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

(Dollars in thousands)	For the Quarters Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Asset Quality Data	2010			2009			2009			2009			2009
Allowance for Loan Losses
Balance at beginning of period	$	27,400		$	26,431		$	26,051		$	24,498		$	23,725
Provision charged to earnings		1,500			2,000			1,800			3,000			1,700
Charge-offs		(1,275	)		(1,215	)		(1,438	)		(1,483	)		(1,026	)
Recoveries		86			184			18			36			99
Balance at end of period	$	27,711		$	27,400		$	26,431		$	26,051		$	24,498

Net Loan Charge-Offs
Commercial:
Mortgages	$	491		$	333		$	(10	)	$	794		$	461
Construction and development		–			–			–			–			–
Other		508			627			1,165			515			349
Residential:
Mortgages		121			29			201			127			32
Homeowner construction		–			–			–			–			–
Consumer		69			42			64			11			85
Total	$	1,189		$	1,031		$	1,420		$	1,447		$	927

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

(Dollars in thousands)
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
Asset Quality Data	2010		2009		2009		2009		2009
Past Due Loans
Loans 30–59 Days Past Due
Commercial real estate	$	2,302	$	1,909	$	4,699	$	2,635	$	2,027
Other commercial loans		2,362		1,831		1,496		2,255		3,537
Residential mortgages		1,549		2,409		2,164		1,820		3,000
Consumer loans		2,019		1,258		593		1,042		419
Loans 30–59 days past due	$	8,232	$	7,407	$	8,952	$	7,752	$	8,983

Loans 60–89 Days Past Due
Commercial real estate	$	2,390	$	1,648	$	400	$	3,537	$	194
Other commercial loans		519		292		609		514		461
Residential mortgages		1,035		1,383		569		1,324		165
Consumer loans		202		591		39		44		–
Loans 60-89 days past due	$	4,146	$	3,914	$	1,617	$	5,419	$	820

Loans 90 Days or more Past Due
Commercial real estate	$	8,374	$	11,227	$	7,972	$	2,760	$	4,269
Other commercial loans		3,142		4,829		6,982		5,861		4,453
Residential mortgages		5,559		4,028		4,186		3,826		3,575
Consumer loans		635		164		300		2		7
Loans 90 days or more past due	$	17,710	$	20,248	$	19,440	$	12,449	$	12,304

Total Past Due Loans
Commercial real estate	$	13,066	$	14,784	$	13,071	$	8,932	$	6,490
Other commercial loans		6,023		6,952		9,087		8,630		8,451
Residential mortgages		8,143		7,820		6,919		6,970		6,740
Consumer loans		2,856		2,013		932		1,088		426
Total past due loans	$	30,088	$	31,569	$	30,009	$	25,620	$	22,107

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

(Dollars in thousands)
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Asset Quality Data	2010			2009			2009			2009			2009
Nonperforming Assets
Commercial mortgages	$	8,933		$	11,588		$	8,147		$	5,995		$	4,384
Commercial construction and development		–			–			–			–			–
Other commercial		8,225			9,075			10,903			10,948			6,433
Residential real estate mortgages		6,395			6,038			5,313			5,168			4,057
Consumer		827			769			850			556			564
Total nonaccrual loans	$	24,380		$	27,470		$	25,213		$	22,667		$	15,438
Nonaccrual investment securities		1,154			1,065			1,490			1,881			1,928
Property acquired through foreclosure or repossession		1,974			1,974			1,186			236			170
Total nonperforming assets	$	27,508		$	30,509		$	27,889		$	24,784		$	17,536

Total past due loans to total loans		1.55	%		1.64	%		1.57	%		1.35	%		1.18	%
Nonperforming assets to total assets		0.95	%		1.06	%		0.97	%		0.85	%		0.60	%
Nonaccrual loans to total loans		1.26	%		1.43	%		1.32	%		1.20	%		0.83	%
Allowance for loan losses to nonaccrual loans		113.66	%		99.75	%		104.83	%		114.93	%		158.69	%
Allowance for loan losses to total loans		1.43	%		1.43	%		1.39	%		1.38	%		1.31	%


Troubled Debt Restructured Loans
Accruing troubled debt restructured loans
Commercial mortgages	$	5,813		$	5,566		$	2,107		$	1,576		$	–
Other commercial		1,217			540			375			323			59
Residential real estate mortgages		2,622			2,736			3,520			2,190			262
Consumer		1,398			858			822			780			479
Accruing troubled debt restructured loans		11,050			9,700			6,824			4,869			800
Nonaccrual troubled debt restructured loans
Other commercial		191			228			353			136			86
Residential real estate mortgages		887			336			336			367			–
Consumer		44			45			7			–			7
Nonaccrual troubled debt restructured loans		1,122			609			696			503			93
Total troubled debt restructured loans	$	12,172		$	10,309		$	7,520		$	5,372		$	893

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,	2010							2009
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets
Commercial and other loans	$	985,807	$	12,904		5.31	%	$	897,458	$	12,111		5.47	%
Residential real estate loans		615,507		7,874		5.19	%		645,959		8,712		5.47	%
Consumer loans		329,312		3,239		3.99	%		318,234		3,367		4.29	%
Total loans		1,930,626		24,017		5.05	%		1,861,651		24,190		5.27	%
Cash, federal funds sold
and other short-term investments		35,770		21		0.23	%		27,228		17		0.26	%
FHLBB stock		42,008		–		–	%		42,008		–		–	%
Taxable debt securities		598,049		6,051		4.10	%		771,240		8,449		4.45	%
Nontaxable debt securities		79,582		1,156		5.89	%		80,677		1,166		5.86	%
Corporate stocks and FHLBB stock		5,135		75		6.05	%		6,512		105		6.15	%
Total securities		682,766		7,282		4.33	%		858,429		9,720		4.59	%
Total interest-earning assets		2,691,170		31,320		4.72	%		2,789,316		33,927		4.93	%
Non interest-earning assets		204,986							174,669
Total assets	$	2,896,156						$	2,963,985
Liabilities and Shareholders’ Equity
NOW accounts	$	194,471	$	64		0.13	%	$	170,031	$	75		0.18	%
Money market accounts		409,214		617		0.61	%		365,070		1,398		1.55	%
Savings accounts		196,880		85		0.18	%		178,144		177		0.40	%
Time deposits		951,453		5,003		2.13	%		971,275		7,897		3.30	%
FHLBB advances		591,974		6,219		4.26	%		769,179		7,227		3.81	%
Junior subordinated debentures		32,991		630		7.75	%		32,991		479		5.89	%
Other		20,986		242		4.66	%		23,517		245		4.22	%
Total interest-bearing liabilities		2,397,969		12,860		2.17	%		2,510,207		17,498		2.83	%
Demand deposits		200,203							172,420
Other liabilities		39,506							43,836
Shareholders’ equity		258,478							237,522
Total liabilities and shareholders’ equity	$	2,896,156						$	2,963,985
Net interest income (FTE)			$	18,460						$	16,429
Interest rate spread						2.55	%						2.10	%
Net interest margin						2.78	%						2.39	%

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)	2010			2009			2009			2009			2009
Calculation of tangible book value per share
Total shareholders’ equity at end of period	$	259,529		$	254,946		$	252,146		$	242,293		$	238,727
Less:
Goodwill		58,114			58,114			58,114			58,114			58,114
Identifiable intangible assets, net		8,652			8,943			9,233			9,536			9,844
Total tangible shareholders’ equity at end of period	$	192,763		$	187,889		$	184,799		$	174,643		$	170,769

Shares outstanding at end of period		16,079.1			16,042.6			16,026.6			16,001.9			15,949.9

Book value per share – GAAP	$	16.14		$	15.89		$	15.73		$	15.14		$	14.97
Tangible book value per share – Non-GAAP	$	11.99		$	11.71		$	11.53		$	10.91		$	10.71


Calculation of tangible equity to tangible assets
Total tangible shareholders’ equity at end of period	$	192,763		$	187,889		$	184,799		$	174,643		$	170,769

Total assets at end of period	$	2,896,425		$	2,884,473		$	2,888,065		$	2,919,808		$	2,947,110
Less:
Goodwill		58,114			58,114			58,114			58,114			58,114
Identifiable intangible assets, net		8,652			8,943			9,233			9,536			9,844
Total tangible assets at end of period	$	2,829,659		$	2,817,416		$	2,820,718		$	2,852,158		$	2,879,152

Equity to assets - GAAP		8.96	%		8.84	%		8.73	%		8.30	%		8.10	%
Tangible equity to tangible assets – Non-GAAP		6.81	%		6.67	%		6.55	%		6.12	%		5.93	%


Calculation of return on average tangible assets
Net income	$	5,172		$	4,748		$	4,913		$	3,765		$	2,670

Total average assets	$	2,896,156		$	2,887,041		$	2,911,110		$	2,924,002		$	2,963,985
Less:
Average goodwill		58,114			58,114			58,114			58,114			58,114
Average identifiable intangible assets, net		8,794			9,084			9,379			9,686			9,995
Total average tangible assets	$	2,829,248		$	2,819,843		$	2,843,617		$	2,856,202		$	2,895,876

Return on average assets - GAAP		0.71	%		0.66	%		0.68	%		0.52	%		0.36	%
Return on average tangible assets – Non-GAAP		0.73	%		0.67	%		0.69	%		0.53	%		0.37	%


Calculation of return on average tangible equity
Net income	$	5,172		$	4,748		$	4,913		$	3,765		$	2,670

Total average shareholders’ equity	$	258,478		$	254,211		$	247,585		$	242,270		$	237,522
Less:
Average goodwill		58,114			58,114			58,114			58,114			58,114
Average identifiable intangible assets, net		8,794			9,084			9,379			9,686			9,995
Total average tangible shareholders’ equity	$	191,570		$	187,013		$	180,092		$	174,470		$	169,413

Return on average shareholders’ equity - GAAP		8.00	%		7.47	%		7.94	%		6.22	%		4.50	%
Return on average tangible shareholders’ equity – Non-GAAP		10.80	%		10.16	%		10.91	%		8.63	%		6.30	%

(Dollars in thousands)
	At March 31, 2010
Commercial Real Estate Loans by Property Location	Balance		% of Total
Rhode Island, Connecticut, Massachusetts	$	516,603		90.5	%
New York, New Jersey, Pennsylvania		40,603		7.1	%
New Hampshire		11,971		2.1	%
Other		1,712		0.3	%
Total commercial real estate loans (1)	$	570,889		100.0	%

(Dollars in thousands)
	At March 31, 2010
Residential Mortgages by Property Location	Balance		% of Total
Rhode Island, Connecticut, Massachusetts	$	562,696		92.4	%
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia		17,825		2.9	%
Ohio		12,059		2.0	%
California, Washington, Oregon		8,125		1.3	%
Colorado, Texas, New Mexico, Utah		4,042		0.7	%
Georgia		2,513		0.4	%
New Hampshire		1,316		0.2	%
Other		482		0.1	%
Total residential mortgages	$	609,058		100.0	%