Washington Trust Bancorp (WASH) 8-K Washington Trust Reports Record Earnings

Exhbit 99.1

[Graphic Omited]

NASDAQ: WASH

Contact:Elizabeth B. Eckel

Senior Vice President, Marketing

Telephone: (401) 348-1309

E-mail: ebeckel@washtrust.com

Date: October 27, 2005

FOR IMMEDIATE RELEASE

Washington Trust Reports Record Earnings

Third Quarter Earnings Per Share up 10%

Westerly, Rhode Island…Washington Trust Bancorp, Inc. (Nasdaq National Market; symbol: WASH), parent company of The Washington Trust Company, today announced third quarter 2005 net income of $5.8 million, an increase of 9 percent from the $5.3 million reported for the third quarter of 2004. On a per diluted share basis, the Corporation earned 43 cents for the third quarter of 2005, up 4 cents, or 10%, from the 39 cents earned for the same quarter in 2004.

Net income for the nine months ended September 30, 2005 amounted to $16.9 million, an increase of 10 percent from the $15.3 million reported for the same period a year ago. On a per diluted share basis, earnings for the nine months ended September 30, 2005 were $1.24, up 11 cents from the $1.13 for the first nine months of 2004.

As previously reported, Washington Trust completed its acquisition of Weston Financial Group, Inc. (“Weston”) on August 31, 2005. Washington Trust financed the acquisition of Weston through the issuance of $22.7 million of junior subordinated debentures to newly-formed special purpose finance entities. Third quarter 2005 financial results include the operations of Weston for the period subsequent to August 31, 2005. In addition, one-time expenses associated with the acquisition equivalent to 3 cents per share were incurred in third quarter 2005.

“Washington Trust had an exceptional quarter,” stated John C. Warren, Washington Trust Chairman and Chief Executive Officer, “Highlighted by record earnings and earnings per share.” He continued, “A major highlight of the quarter was the acquisition of Weston Financial Group, which helped revenues from wealth management and trust increase 26 percent over the third quarter of 2004. Our Wealth Management assets under administration now stand at $3.2 billion.” Warren added, “We also had good balance sheet growth, particularly in our loan portfolio, which has increased by 12 percent since the end of 2004.”

-M O R E-

Washington Trust

Page Two, October 27, 2005

Net interest income for the third quarter of 2005 increased $1.5 million, or 11 percent, compared to the third quarter a year ago. This increase in net interest income was primarily due to increased volume of interest-earning assets and the impact of interest rate increases on earning asset yields. Included in net interest income in the third quarters of 2005 and 2004 were loan prepayment and other fees totaling $288 thousand and $82 thousand, respectively. The net interest margin for the three months ended September 30, 2005 amounted to 2.78%, compared to 2.76% in the second quarter of 2005, and 2.69% in the third quarter of 2004. The contribution of loan prepayment and other fees to the net interest margin was 5 basis points in the third quarter of 2005, 3 basis points in the second quarter of 2005 and 2 basis points in the third quarter of 2004. In connection with a portion of the loan prepayment fees received in the third quarter of 2005, a corresponding debt prepayment penalty expense of $129 thousand was incurred due to the payoff of a match-funded FHLB advance. The debt prepayment penalty expense was included in other noninterest expenses in the third quarter of 2005.

Excluding net realized gains and losses on securities, noninterest income for the third quarter of 2005 increased $1.4 million, or 20 percent, over the same quarter a year ago, largely due to higher revenues from wealth management and trust services. Revenue from wealth management and trust services represented 49% of noninterest income (excluding net realized gains and losses on securities) for the third quarter of 2005. This revenue increased $848 thousand, or 26 percent, over the third quarter of 2004 primarily due to the acquisition of Weston, which was completed on August 31, 2005. This revenue is largely dependent on the value of assets under administration and is closely tied to the performance of the financial markets. Assets under administration totaled $3.219 billion at September 30, 2005 and included $1.348 billion attributable to Weston. Assets under administration were $1.837 billion at September 30, 2004.

Noninterest expenses for the third quarter of 2005 increased 13 percent over the third quarter a year ago. Included in noninterest expenses in the third quarter of 2005 were direct acquisition and acquisition related costs amounting to $605 thousand ($440 thousand, after tax), which accounted for approximately 4 percent of the quarter-to-quarter increase. Acquisition related costs included costs incurred in connection with management changes, organization costs related to the establishment of the trust preferred entities, acquisition related accounting and legal costs and other charges. Excluding the acquisition related costs and debt prepayment penalty expense, noninterest expenses for the third quarter of 2005 grew 8 percent over the same quarter last year. Growth in noninterest expenses was principally due to operating expenses of the newly acquired entity, increases in compensation and benefit costs, and higher audit and other costs associated with the requirements of Section 404 of the Sarbanes-Oxley Act.

- M O R E -

Washington Trust

Page Three, October 27, 2005

In the first nine months of 2005, Washington Trust’s loan portfolio increased $146.4 million, or 12 percent, to $1.396 billion at September 30, 2005. Residential real estate loans grew $71.3 million, or 14 percent, during the nine months of 2005, including an increase of $24.2 million in purchased residential mortgages. Consumer loans increased $28.1 million, or 12 percent, in the first nine months of 2005, due primarily to growth in home equity lines and loans. Commercial loans, including commercial real estate and construction loans, grew $47.1 million, or 9 percent, from the balance at December 31, 2004.

Total securities at September 30, 2005 declined $107.9 million in the first nine months of 2005. The flattening of the yield curve has made reinvestment of maturing balances relatively unattractive during this period.

Total deposits amounted to $1.610 billion at September 30, 2005, up $152.4 million, or 10 percent, from the balance at December 31, 2004, with the largest increase in certificates of deposit. During the first nine months of 2005, the Corporation reduced its Federal Home Loan Bank advance borrowing position by $94.8 million, primarily in connection with the reduction of the securities portfolio.

Asset quality, as measured by the level of nonperforming assets, continues to be strong in 2005. Nonperforming assets (nonaccrual loans and property acquired through foreclosure) declined during the first nine months of 2005 and were below December 31, 2004 and September 30, 2004 levels. Nonperforming assets totaled $1.9 million, or .08% of total assets, at September 30, 2005.

The allowance for loan losses was $17.6 million, or 1.26% of total loans, at September 30, 2005, compared to $16.8 million, or 1.34%, at December 31, 2004. The Corporation’s loan loss provision amounted to $300 thousand for the third quarter of 2005 and $900 thousand for the first nine months of 2005. Comparable amounts for the prior year totaled $120 thousand for third quarter 2004 and $360 thousand for the nine months ended September 30, 2004. The increase in the Corporation’s loan loss provision was in response to growth in the loan portfolio.

Total shareholders’ equity amounted to $157.3 million at September 30, 2005, compared to $151.9 million at December 31, 2004. Book value per share as of September 30, 2005 and December 31, 2004 amounted to $11.78 and $11.44, respectively.

- M O R E -

Washington Trust

Page Four, October 27, 2005

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 Thursday, October 27, at 4:30 p.m. (Eastern Time) to discuss the Corporation’s third quarter results. Access to the call is available in a listen-only mode on Washington Trust’s web site, http://investorrelations.washtrust.com. A replay of the call will be posted in this same location on the web site shortly after the conclusion of the call.

Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a Rhode Island state-chartered bank founded in 1800. Washington Trust offers personal banking, business banking and wealth management services through its offices in Rhode Island, Massachusetts and southeastern Connecticut. Washington Trust Bancorp, Inc.’s common stock trades on The Nasdaq Stock Market^Ò under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrust.com.

# # #

This report 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. The Corporation’s actual results, performance or achievements could differ materially from those projected in the forward-looking statements as a result, among other factors, of changes in general national or regional economic conditions, changes in interest rates, reductions in the market value of trust and investment assets under management, reductions in loan demand, reductions in deposit levels necessitating increased borrowing to fund loans and investments, changes in loan 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.

Washington Trust Bancorp, Inc. and Subsidiary
FINANCIAL SUMMARY
	Three Months Ended
	Sep. 30,			Sep. 30,			Jun. 30,
(Dollars and shares in thousands, except per share amounts)	2005			2004			2005
Operating Results
Net interest income	$	15,360		$	13,882		$	14,972
Provision for loan losses		300			120			300
Net realized gains (losses) on securities		17			101			3
Other noninterest income		8,357			6,966			6,991
Noninterest expenses		14,810			13,054			13,373
Income tax expense		2,802			2,442			2,654
Net income		5,822			5,333			5,639
Per Share
Basic earnings	$	0.44		$	0.40		$	0.42
Diluted earnings	$	0.43		$	0.39		$	0.41
Dividends declared	$	0.18		$	0.17		$	0.18
Weighted Average Shares Outstanding
Basic		13,330.3			13,235.7			13,296.0
Diluted		13,641.9			13,514.0			13,592.3
Key Ratios
Return on average assets		0.98	%		0.96	%		0.97	%
Return on average equity		14.75	%		14.70	%		14.58	%
Interest rate spread (taxable equivalent basis)		2.46	%		2.40	%		2.48	%
Net interest margin (taxable equivalent basis)		2.78	%		2.69	%		2.76	%
Allowance for Loan Losses
Balance at beginning of period	$	17,442		$	16,208		$	17,058
Provision charged to earnings		300			120			300
Reclassification of allowance on off-balance sheet exposures		(250	)		-			-
Net (charge-offs) recoveries		122			299			84
Balance at end of period	$	17,614		$	16,627		$	17,442

Washington Trust Bancorp, Inc. and Subsidiary
FINANCIAL SUMMARY
	Nine Months Ended
	Sep. 30,			Sep. 30,
(Dollars and shares in thousands, except per share amounts)	2005			2004
Operating Results
Net interest income	$	44,953		$	40,057
Provision for loan losses		900			360
Net realized gains (losses) on securities		20			(139	)
Other noninterest income		21,427			20,070
Noninterest expenses		40,627			37,279
Income tax expense		8,002			7,018
Net income		16,871			15,331
Per Share
Basic earnings	$	1.27		$	1.16
Diluted earnings	$	1.24		$	1.13
Dividends declared	$	0.54		$	0.51
Weighted Average Shares Outstanding
Basic		13,303.2			13,217.1
Diluted		13,615.8			13,520.1
Key Ratios
Return on average assets		0.96	%		0.97	%
Return on average equity		14.51	%		14.35	%
Interest rate spread (taxable equivalent basis)		2.48	%		2.50	%
Net interest margin (taxable equivalent basis)		2.77	%		2.76	%
Allowance for Loan Losses
Balance at beginning of period	$	16,771		$	15,914
Provision charged to earnings		900			360
Reclassification of allowance on off-balance sheet exposures		(250	)		-
Net (charge-offs) recoveries		193			353
Balance at end of period	$	17,614		$	16,627

Washington Trust Bancorp, Inc. and Subsidiary
FINANCIAL SUMMARY
	Sep. 30,			Dec. 31,			Sep. 30,
(Dollars and shares in thousands, except per share amounts)	2005			2004			2004
Period-End Balance Sheet
Assets	$	2,403,161		$	2,307,820		$	2,280,115
Total securities		782,207			890,058			899,678
Loans:
Commercial and other:
Mortgages		285,450			266,670			253,327
Construction and development		33,862			29,263			22,504
Other		235,457			211,778			206,559
Total commercial and other		554,769			507,711			482,390
Residential real estate:
Mortgages		568,675			494,720			476,705
Homeowner construction		16,302			18,975			21,154
Total residential real estate		584,977			513,695			497,859
Consumer:
Home equity lines		163,727			155,001			146,291
Other		92,639			73,269			70,932
Total consumer		256,366			228,270			217,223
Total loans		1,396,112			1,249,676			1,197,472
Deposits:
Demand deposits		216,061			189,588			215,685
NOW accounts		186,615			174,727			162,422
Money market accounts		219,982			196,775			218.793
Savings accounts		227,834			251,920			259,062
Time deposits		759,746			644,875			613,036
Total deposits		1,610,238			1,457,885			1,468,998
Brokered deposits included in time deposits		172,598			169,587			169,795
Federal Home Loan Bank advances		577,936			672,748			639,835
Shareholders’ equity		157,251			151,852			148,402
Capital Ratios
Tier 1 risk-based capital		8.82	%		9.15	%		9.09	%
Total risk-based capital		10.31	%		10.72	%		10.63	%
Tier 1 leverage ratio		5.32	%		5.35	%		5.34	%
Share Information
Shares outstanding at end of period		13,347.0			13,269.4			13,247.7
Book value per share	$	11.78		$	11.44		$	11.20
Tangible book value per share	$	7.68		$	9.64		$	9.39
Market value per share	$	27.19		$	29.31		$	26.15
Credit Quality
Nonaccrual loans	$	1,873		$	4,731		$	5,163
Other real estate owned, net		-			4			-
Nonperforming assets to total assets		0.08	%		0.21	%		0.23	%
Nonaccrual loans to total loans		0.13	%		0.38	%		0.43	%
Allowance for loan losses to nonaccrual loans		940.42	%		354.49	%		322.04	%
Allowance for loan losses to total loans		1.26	%		1.34	%		1.39	%
Assets Under Administration
Market value	$	3,219,011		$	1,870,510		$	1,837,302

Washington Trust Bancorp, Inc. and Subsidiary
CONSOLIDATED CONDENSED BALANCE SHEETS
	(Unaudited)
(Dollars in thousands)	September 30,			December 31,
	2005			2004
Assets:
Cash and due from banks	$	66,206		$	34,801
Federal funds sold and other short-term investments		8,657			17,280
Mortgage loans held for sale		2,241			1,095
Securities:
Available for sale, at fair value; amortized cost $610,263 in 2005 and $724,209 in 2004		613,097			735,666
Held to maturity, at cost; fair value $167,890 in 2005 and $156,270 in 2004		169,110			154,392
Total securities		782,207			890,058
Federal Home Loan Bank stock, at cost		34,966			34,373
Loans:
Commercial and other		554,769			507,711
Residential real estate		584,977			513,695
Consumer		256,366			228,270
Total loans		1,396,112			1,249,676
Less allowance for loan losses		17,614			16,771
Net loans		1,378,498			1,232,905
Premises and equipment, net		23,942			24,248
Accrued interest receivable		10,284			9,367
Investment in bank-owned life insurance		30,083			29,249
Goodwill and identifiable intangible assets		54,808			23,900
Other assets		11,269			10,544
Total assets	$	2,403,161		$	2,307,820
Liabilities:
Deposits:
Demand deposits	$	216,061		$	189,588
NOW accounts		186,615			174,727
Money market accounts		219,982			196,775
Savings accounts		227,834			251,920
Time deposits		759,746			644,875
Total deposits		1,610,238			1,457,885
Dividends payable		2,404			2,257
Federal Home Loan Bank advances		577,936			672,748
Junior subordinated debentures		22,681			-
Other borrowings		8,768			3,417
Accrued expenses and other liabilities		23,883			19,661
Total liabilities		2,245,910			2,155,968
Shareholders’ Equity:
Common stock of $.0625 par value; authorized 30 million shares;
issued 13,356,053 shares in 2005 and 13,278,685 in 2004		835			830
Paid-in capital		33,293			31,718
Retained earnings		122,990			113,314
Unearned stock-based compensation		(1,012	)		(737	)
Accumulated other comprehensive income		1,354			6,937
Treasury stock, at cost; 9,033 shares in 2005 and 9,309 in 2004		(209	)		(210	)
Total shareholders’ equity		157,251			151,852
Total liabilities and shareholders’ equity	$	2,403,161		$	2,307,820

Washington Trust Bancorp, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share amounts)	(Unaudited)
	Three Months				Nine Months
Periods ended September 30,	2005		2004		2005		2004
Interest income:
Interest and fees on loans	$	20,418	$	15,762	$	57,339	$	43,690
Interest on securities		8,306		8,742		25,414		25,104
Dividends on corporate stock and Federal Home Loan Bank stock		594		562		1,838		1,542
Interest on federal funds sold and other short-term investments		187		47		321		87
Total interest income		29,505		25,113		84,912		70,423
Interest expense:
Deposits		8,241		5,936		22,800		15,707
Federal Home Loan Bank advances		5,741		5,281		16,960		14,615
Junior subordinated debentures		124		-		124		-
Other		39		14		75		44
Total interest expense		14,145		11,231		39,959		30,366
Net interest income		15,360		13,882		44,953		40,057
Provision for loan losses		300		120		900		360
Net interest income after provision for loan losses		15,060		13,762		44,053		39,697
Noninterest income:
Wealth management and trust services		4,066		3,218		10,764		9,593
Service charges on deposit accounts		1,158		1,066		3,337		3,428
Merchant processing fees		1,932		1,643		4,047		3,335
Net gains on loan sales		415		348		1,320		1,257
Net realized gains (losses) on securities		17		101		20		(139	)
Income from bank-owned life insurance		282		293		833		887
Other income		504		398		1,126		1,570
Total noninterest income		8,374		7,067		21,447		19,931
Noninterest expense:
Salaries and employee benefits		8,194		7,439		23,103		21,634
Net occupancy		828		770		2,483		2,382
Equipment		832		837		2,583		2,395
Merchant processing costs		1,623		1,398		3,357		2,746
Advertising and promotion		460		429		1,496		1,433
Outsourced services		406		357		1,263		1,200
Legal, audit and professional fees		513		379		1,425		882
Amortization of intangibles		196		161		442		483
Other		1,758		1,284		4,475		4,124
Total noninterest expense		14,810		13,054		40,627		37,279
Income before income taxes		8,624		7,775		24,873		22,349
Income tax expense		2,802		2,442		8,002		7,018
Net income	$	5,822	$	5,333	$	16,871	$	15,331
Weighted average shares outstanding - basic		13,330.3		13,235.7		13,303.2		13,217.1
Weighted average shares outstanding - diluted		13,641.9		13,514.0		13,615.8		13,520.1
Per share information:
Basic earnings per share	$	0.44	$	0.40	$	1.27	$	1.16
Diluted earnings per share	$	0.43	$	0.39	$	1.24	$	1.13
Cash dividends declared per share	$	0.18	$	0.17	$	0.54	$	0.51

Washington Trust Bancorp, Inc. and Subsidiary
CONSOLIDATED AVERAGE BALANCE SHEETS
	(Unaudited)
Three months ended September 30,	2005							2004
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets:
Residential real estate loans	$	574,344	$	7,104		4.91	%	$	468,212	$	5,867		4.99	%
Commercial and other loans		539,145		9,684		7.13	%		471,164		7,531		6.36	%
Consumer loans		251,540		3,677		5.80	%		209,615		2,408		4.57	%
Total loans		1,365,029		20,465		5.95	%		1,148,991		15,806		5.47	%
Federal funds sold and
other short-term investments		22,562		186		3.27	%		16,206		46		1.13	%
Taxable debt securities		764,617		8,084		4.19	%		855,908		8,578		3.99	%
Nontaxable debt securities		23,467		341		5.76	%		16,402		251		6.08	%
Corporate stocks and FHLB stock		49,828		678		5.40	%		55,566		677		4.85	%
Total securities		860,474		9,289		4.28	%		944,082		9,552		4.03	%
Total interest-earning assets		2,225,503		29,754		5.30	%		2,093,073		25,358		4.82	%
Non interest-earning assets		142,845							128,366
Total assets	$	2,368,348						$	2,221,439
Liabilities and Shareholders’ Equity:
NOW accounts	$	180,292	$	76		0.17	%	$	165,206	$	86		0.21	%
Money market accounts		203,148		1,141		2.23	%		184,992		686		1.48	%
Savings deposits		229,051		332		0.58	%		261,713		408		0.62	%
Time deposits		741,127		6,692		3.58	%		601,822		4,756		3.14	%
FHLB advances		609,050		5,741		3.74	%		634,346		5,280		3.31	%
Junior subordinated debentures		8,136		124		6.04	%		-		-		-	%
Other		3,513		40		4.55	%		1,878		15		3.24	%
Total interest-bearing liabilities		1,974,317		14,146		2.84	%		1,849,957		11,231		2.42	%
Demand deposits		214,256							210,974
Other liabilities		21,936							15,357
Shareholders’ equity		157,839							145,151
Total liabilities and shareholders’ equity	$	2,368,348						$	2,221,439
Net interest income (FTE)			$	15,608						$	14,127
Interest rate spread						2.46	%						2.40	%
Net interest margin						2.78	%						2.69	%

Washington Trust Bancorp, Inc. and Subsidiary
CONSOLIDATED AVERAGE BALANCE SHEETS
	(Unaudited)
Nine months ended September 30,	2005							2004
	Average				Yield/			Average				Yield/
(Dollars in thousands)	Balance		Interest		Rate			Balance		Interest		Rate
Assets:
Residential real estate loans	$	554,771	$	20,498		4.94	%	$	430,002	$	16,377		5.09	%
Commercial and other loans		523,242		27,032		6.91	%		439,482		21,126		6.42	%
Consumer loans		242,084		9,945		5.49	%		190,979		6,306		4.41	%
Total loans		1,320,097		57,475		5.82	%		1,060,463		43,809		5.52	%
Federal funds sold and
other short-term investments		15,127		322		2.83	%		12,824		87		0.90	%
Taxable debt securities		799,620		24,803		4.15	%		831,661		24,626		3.96	%
Nontaxable debt securities		21,338		938		5.88	%		15,588		734		6.29	%
Corporate stocks and FHLB stock		51,386		2,121		5.52	%		55,481		1,882		4.53	%
Total securities		887,471		28,184		4.25	%		915,554		27,329		3.99	%
Total interest-earning assets		2,207,568		85,659		5.19	%		1,976,017		71,138		4.81	%
Non interest-earning assets		132,209							124,932
Total assets	$	2,339,777						$	2,100,949
Liabilities and Shareholders’ Equity:
NOW accounts	$	177,201	$	231		0.17	%	$	159,323	$	258		0.22	%
Money market accounts		195,585		2,900		1.98	%		134,015		1,358		1.35	%
Savings deposits		239,794		1,081		0.60	%		257,822		1,187		0.61	%
Time deposits		721,502		18,588		3.44	%		558,365		12,903		3.09	%
FHLB advances		631,831		16,960		3.59	%		641,422		14,615		3.04	%
Junior subordinated debentures		2,742		124		6.06	%		-		-		-	%
Other		2,311		76		4.37	%		2,012		45		3.00	%
Total interest-bearing liabilities		1,970,966		39,960		2.71	%		1,752,959		30,366		2.31	%
Demand deposits		195,451							190,797
Other liabilities		18,366							14,764
Shareholders’ equity		154,994							142,429
Total liabilities and shareholders’ equity	$	2,339,777						$	2,100,949
Net interest income (FTE)			$	45,699						$	40,772
Interest rate spread						2.48	%						2.50	%
Net interest margin						2.77	%						2.76	%