|  x | Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended DECEMBER 31, 2009 or |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|

|  o | Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____________ to ____________ |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| RHODE ISLAND                                                   |   | 05-0404671                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 23 BROAD STREET, WESTERLY, RHODE ISLAND                        |   | 02891                                |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

| COMMON STOCK, $.0625 PAR VALUE PER SHARE |   | THE NASDAQ STOCK MARKET LLC                 |
|------------------------------------------|--------|---------------------------------------------|
| (Title of each class)                    |   | (Name of each exchange on which registered) |

  x Yes  
No 

| Large accelerated filer  o | Accelerated filer  x         |
|---------------------------------|-----------------------------------|
| Non-accelerated filer  o   | Smaller reporting company  o |

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TABLE OF CONTENTS

|  Description |                                                                                                                                                                          | PageNumber |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| Part I            |                                                                                                                                                                          |       |
| Item 1            | Business                                                                                                                                                                      | 3          |
| Item 1A           | Risk Factors                                                                                                                                                                  | 13         |
| Item 1B           | Unresolved Staff Comments                                                                                                                                                     | 16         |
| Item 2            | Properties                                                                                                                                                                    | 16         |
| Item 3            | Legal Proceedings                                                                                                                                                             | 17         |
| Part II           |                                                                                                                                                                          |       |
| Item 5            | Market for Registrant’s Equity, Related Stockholder Matters and   Issuer Purchases of Equity Securities                                                  | 17         |
| Item 6            | Selected Financial Data                                                                                                                                                       | 19         |
| Item 7            | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                   | 23         |
| Item 7A           | Quantitative and Qualitative Disclosures about Market Risk                                                                                                                    | 60         |
| Item 8            | Financial Statements and Supplementary Data                                                                                                                                   | 60         |
| Item 9            | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                                                                          | 124        |
| Item 9A           | Controls and Procedures                                                                                                                                                       | 124        |
| Item 9B           | Other Information                                                                                                                                                             | 124        |
| Part III          |                                                                                                                                                                          |       |
| Item 10           | Directors, Executive Officers and Corporate Governance                                                                                                                        | 124        |
| Item 11           | Executive Compensation                                                                                                                                                        | 124        |
| Item 12           | Security Ownership of Certain Beneficial Owners and Management and Related   Stockholder Matters                                                               | 125        |
| Item 13           | Certain Relationships and Related Transactions, and Director Independence                                                                                                     | 125        |
| Item 14           | Principal Accounting Fees and Services                                                                                                                                        | 126        |
| Item 15           | Exhibits, Financial Statement Schedules                                                                                                                                       | 126        |
| Signatures        |                                                                                                                                                                          | 130        |
| Exhibit 23.1      | Consent of Independent Accountants                                                                                                                                            |       |
| Exhibit 31.1      | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                            |       |
| Exhibit 31.2      | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                            |       |
| Exhibit 32.1      | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |       |

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PART I

ITEM 1.  Business

| Residential mortgages       | Consumer installment loans              | Merchant credit card services |
|-----------------------------|-----------------------------------------|-------------------------------|
| Reverse mortgages           | Commercial and consumer demand deposits | Telephone banking services    |
| Commercial loans            | Savings, NOW and money market deposits  | Internet banking services     |
| Construction loans          | Certificates of deposit                 | Cash management services      |
| Home equity lines of credit | Retirement accounts                     | Remote deposit capture        |
| Home equity loans           | Automated teller machines (ATMs)        | Safe deposit boxes            |

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| (1)   | These acquisitions have been accounted for as a purchase and, accordingly, the operations of the acquired companies are included in the Consolidated Financial Statements from their dates of acquisition. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | These acquisitions were accounted for as poolings of interests and, accordingly, all financial data was restated to reflect the combined financial condition and results of operations as if these acquisitions were in effect for all periods presented. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| §   | “well-capitalized” if it has a total risk-based capital ratio of 10.0% or greater, has a Tier 1 risk-based capital ratio of 6.0% or more, has a leverage ratio of 5.0% or greater and is not subject to any written agreement, order or capital directive or prompt corrective action directive; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | “adequately capitalized” if it has a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 4.0% or more, and a leverage ratio of 4.0% or greater (3.0% under certain circumstances) and does not meet the definition of a “well-capitalized bank;” |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | “undercapitalized” if it has a total risk-based capital ratio that is less than 8.0%, a Tier 1 risk-based capital ratio that is less than 4.0% or a leverage ratio that is less than 4.0% (3.0% under certain circumstances); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | “significantly undercapitalized” if it has a total risk-based capital ratio that is less than 6.0%, a Tier 1 risk-based capital ratio that is less than 3.0% or a leverage ratio that is less than 3.0%; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | “critically undercapitalized” if it has a ratio of tangible equity to total assets that is equal to or less than 2.0%. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

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| §   | In the case of one such affiliate, the aggregate amount of covered transactions of the insured depository institution and its subsidiaries cannot exceed 10% of the capital stock and surplus of the insured depository institution. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | In the case of all affiliates, the aggregate amount of covered transactions of the insured depository institution and its subsidiaries cannot exceed 20% of the capital stock and surplus of the insured depository institution. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 1A.  Risk Factors.

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| ·   | Regional credit concentration - We are exposed to real estate and economic factors in southern New England, because a significant portion of our loan portfolio is concentrated among borrowers in this market.  Further, because a substantial portion of our loan portfolio is secured by real estate in this area, including residential mortgages,most consumer loans, commercial mortgages and other commercial loans, the value of our collateral is also subject to regional real estate market conditions and other factors that might affect the value of real estate, including natural disasters. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Industry concentration - A portion of our loan portfolio consists of loans to the hospitality, tourism and recreation industries.  Loans to companies in these industries may have a somewhat higher risk of loss than some other industries because these businesses are seasonal, with a substantial portion of commerce concentrated in the summerseason.  Accordingly, the ability of borrowers to meet their repayment terms is more dependent on economic, climate and other conditions and may be subject to a higher degree of volatility from year to year. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Current economic conditions have contributed to varying declines in residential and commercial real estate values and the value of other collateral as well as increasing the constraints on the cash flows of borrowers.  These conditions may also result in an increase in delinquencies with a negative impact on our loan loss experience.  Accordingly,our allowance for loan losses may need to be increased, which could have an adverse effect on our results of operations and financial condition. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Federal and state regulators periodically review our allowance for loan losses and may require us to increase our provision for loan losses or recognize additional charge-offs.  Any increase in our allowance for loan losses or loan charge-offs required by these regulatory agencies could have a material adverse effect on our results ofoperations and financial condition. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 1B.  Unresolved Staff Comments.

|   |                                                                                                 | Page      |
|--------|------------------------------------------------------------------------------------------------------|-----------|
| I.     | Distribution of Assets, Liabilities and Stockholder Equity;Interest Rates and Interest Differentials | 32-33     |
| II.    | Investment Portfolio                                                                                 | 38-43, 85 |
| III.   | Loan Portfolio                                                                                       | 44-51, 86 |
| IV.    | Summary of Loan Loss Experience                                                                      | 51-54, 89 |
| V.     | Deposits                                                                                             | 32, 94    |
| VI.    | Return on Equity and Assets                                                                          | 19        |
| VII.   | Short-Term Borrowings                                                                                | 96        |

ITEM 2.  Properties.

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ITEM 3.  Legal Proceedings.

PART II

|  ITEM 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of |
|---------------------|--------------------------------------------------------------------------------------------------|
|                | Equity Securities.                                                                          |

| 2009 Quarters                    |   |   | 1      |   |   |   | 2      |   |   |   | 3      |   |   |   | 4      |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Stock prices:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                             |   | $      | 20.62  |   |   | $      | 20.75  |   |   | $      | 19.61  |   |   | $      | 17.95  |   |
| Low                              |   |   | 11.50  |   |   |   | 15.67  |   |   |   | 16.16  |   |   |   | 13.97  |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividend declared per share |   | $      | 0.21   |   |   | $      | 0.21   |   |   | $      | 0.21   |   |   | $      | 0.21   |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2008 Quarters                    |   |   | 1      |   |   |   | 2      |   |   |   | 3      |   |   |   | 4      |   |
| Stock prices:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                             |   | $      | 26.50  |   |   | $      | 26.49  |   |   | $      | 33.34  |   |   | $      | 27.30  |   |
| Low                              |   |   | 21.84  |   |   |   | 19.70  |   |   |   | 18.43  |   |   |   | 16.33  |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividend declared per share |   | $      | 0.20   |   |   | $      | 0.21   |   |   | $      | 0.21   |   |   | $      | 0.21   |   |

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| For the period ending December 31 |   | 2004 |   |   | 2005   |   |   | 2006   |   |   | 2007   |   |   | 2008 |   |   | 2009   |   |
|----------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|--------|--------|
| Washington Trust Bancorp, Inc.         |   | $    | 100.00 |   |   | $      | 91.72  |   |   | $      | 100.51 |   |   | $    | 93.73  |   |   | $      | 76.08 |   |   | $ | 63.00 |   |
| NASDAQ Bank Stocks                     |   | $    | 100.00 |   |   | $      | 95.67  |   |   | $      | 106.20 |   |   | $    | 82.76  |   |   | $      | 62.96 |   |   | $ | 51.31 |   |
| NASDAQ Stock Market (U.S.)             |   | $    | 100.00 |   |   | $      | 101.37 |   |   | $      | 111.03 |   |   | $    | 121.92 |   |   | $      | 72.49 |   |   | $ | 104.31 |   |

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ITEM 6.  Selected Financial Data.

| Selected Financial Data                                  |   | (Dollars in thousands, except per share amounts) |    |
|----------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                     |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| At or for the years ended December 31,                   |   | 2009                                             |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Financial Results:                                       |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                          |   | $                                                | 129,630 |   |   | $ | 140,662 |   |   | $ | 136,434 |   |   | $ | 131,134 |   |   | $ | 115,693 |   |
| Interest expense                                         |   |                                             | 63,738  |   |   |   | 75,149 |   |   |   | 76,490 |   |   |   | 69,660 |   |   |   | 55,037 |   |
| Net interest income                                      |   |                                             | 65,892  |   |   |   | 65,513 |   |   |   | 59,944 |   |   |   | 61,474 |   |   |   | 60,656 |   |
| Provision for loan losses                                |   |                                             | 8,500   |   |   |   | 4,800 |   |   |   | 1,900 |   |   |   | 1,200 |   |   |   | 1,200 |   |
| Net interest income after provision for loan losses      |   |                                             | 57,392  |   |   |   | 60,713 |   |   |   | 58,044 |   |   |   | 60,274 |   |   |   | 59,456 |   |
| Noninterest income:                                      |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net realized gains on sales of securities                |   |                                             | 314     |   |   |   | 2,224 |   |   |   | 455 |   |   |   | 443 |   |   |   | 389 |   |
| Net other-than-temporary impairment losses on securities |   |                                             | (3,137  | ) |   |   | (5,937 | ) |   |   | – |   |   |   | – |   |   |   | (32 | ) |
| Other noninterest income                                 |   |                                             | 45,041  |   |   |   | 44,233 |   |   |   | 45,054 |   |   |   | 41,740 |   |   |   | 30,589 |   |
| Total noninterest income                                 |   |                                             | 42,218  |   |   |   | 40,520 |   |   |   | 45,509 |   |   |   | 42,183 |   |   |   | 30,946 |   |
| Noninterest expense                                      |   |                                             | 77,168  |   |   |   | 71,742 |   |   |   | 68,906 |   |   |   | 65,335 |   |   |   | 56,393 |   |
| Income before income taxes                               |   |                                             | 22,442  |   |   |   | 29,491 |   |   |   | 34,647 |   |   |   | 37,122 |   |   |   | 34,009 |   |
| Income tax expense                                       |   |                                             | 6,346   |   |   |   | 7,319 |   |   |   | 10,847 |   |   |   | 12,091 |   |   |   | 10,985 |   |
| Net income                                               |   | $                                                | 16,096  |   |   | $ | 22,172 |   |   | $ | 23,800 |   |   | $ | 25,031 |   |   | $ | 23,024 |   |
|  Per share information ($):                         |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                      |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                    |   |                                             | 1.01    |   |   |   | 1.59 |   |   |   | 1.78 |   |   |   | 1.86 |   |   |   | 1.73 |   |
| Diluted                                                  |   |                                             | 1.00    |   |   |   | 1.57 |   |   |   | 1.75 |   |   |   | 1.82 |   |   |   | 1.69 |   |
| Cash dividends declared  (1)                   |   |                                             | 0.84    |   |   |   | 0.83 |   |   |   | 0.80 |   |   |   | 0.76 |   |   |   | 0.72 |   |
| Book value                                               |   |                                             | 15.89   |   |   |   | 14.75 |   |   |   | 13.97 |   |   |   | 12.89 |   |   |   | 11.86 |   |
| Market value - closing stock price                       |   |                                             | 15.58   |   |   |   | 19.75 |   |   |   | 25.23 |   |   |   | 27.89 |   |   |   | 26.18 |   |
| Performance Ratios (%):                                  |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets                                 |   |                                             | 0.55    |   |   |   | 0.82 |   |   |   | 0.99 |   |   |   | 1.04 |   |   |   | 0.98 |   |
| Return on average shareholders’ equity             |   |                                             | 6.56    |   |   |   | 11.12 |   |   |   | 13.48 |   |   |   | 14.99 |   |   |   | 14.80 |   |
| Average equity to average total assets                   |   |                                             | 8.40    |   |   |   | 7.35 |   |   |   | 7.33 |   |   |   | 6.93 |   |   |   | 6.62 |   |
| Dividend payout ratio  (2)                     |   |                                             | 84.00   |   |   |   | 52.87 |   |   |   | 45.71 |   |   |   | 41.76 |   |   |   | 42.60 |   |
| Asset Quality Ratios (%):                                |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total past due loans to total loans                      |   |                                             | 1.64    |   |   |   | 0.96 |   |   |   | 0.45 |   |   |   | 0.49 |   |   |   | 0.27 |   |
| Nonperforming loans to total loans                       |   |                                             | 1.43    |   |   |   | 0.42 |   |   |   | 0.27 |   |   |   | 0.19 |   |   |   | 0.17 |   |
| Nonperforming assets to total assets                     |   |                                             | 1.06    |   |   |   | 0.30 |   |   |   | 0.17 |   |   |   | 0.11 |   |   |   | 0.10 |   |
| Allowance for loan losses to nonaccrual loans            |   |                                             | 99.75   |   |   |   | 305.07 |   |   |   | 471.12 |   |   |   | 693.87 |   |   |   | 742.25 |   |
| Allowance for loan losses to total loans                 |   |                                             | 1.43    |   |   |   | 1.29 |   |   |   | 1.29 |   |   |   | 1.29 |   |   |   | 1.28 |   |
| Net charge-offs (recoveries) to average loans            |   |                                             | 0.25    |   |   |   | 0.08 |   |   |   | 0.03 |   |   |   | 0.02 |   |   |   | (0.01 | ) |
| Capital Ratios (%):                                      |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 leverage capital ratio                            |   |                                             | 7.82    |   |   |   | 7.53 |   |   |   | 6.09 |   |   |   | 6.01 |   |   |   | 5.45 |   |
| Tier 1 risk-based capital ratio                          |   |                                             | 11.14   |   |   |   | 11.29 |   |   |   | 9.10 |   |   |   | 9.57 |   |   |   | 9.06 |   |
| Total risk-based capital ratio                           |   |                                             | 12.40   |   |   |   | 12.54 |   |   |   | 10.39 |   |   |   | 10.96 |   |   |   | 10.51 |   |

| (1)   | Represents historical per share dividends declared by the Bancorp. |
|-----------------|--------------------------------------------------------------------|

| (2)   | Represents the ratio of historical per share dividends declared by the Bancorp to diluted earnings per share. |
|-----------------|---------------------------------------------------------------------------------------------------------------|

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| Selected Financial Data | (Dollars in thousands) |
|-------------------------|------------------------|

|                                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
|--------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
| December 31,                                     |   | 2009   |      |   | 2008   |   |      | 2007   |   |   | 2006      |   |   | 2005   |      |
| Assets:                                          |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |
| Cash and cash equivalents                        |   | $      | 57,260    |   |   | $      | 58,190    |   |   | $      | 41,112    |   |   | $      | 71,909    |   |   | $ | 66,163 |   |
| Total securities                                 |   |   | 691,484   |   |   |   | 866,219   |   |   |   | 751,778   |   |   |   | 703,851   |   |   |   | 783,941 |   |
| FHLBB stock                                      |   |   | 42,008    |   |   |   | 42,008    |   |   |   | 31,725    |   |   |   | 28,727    |   |   |   | 34,966 |   |
| Loans:                                           |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Commercial and other                             |   |   | 984,550   |   |   |   | 880,313   |   |   |   | 680,266   |   |   |   | 587,397   |   |   |   | 554,734 |   |
| Residential real estate                          |   |   | 605,575   |   |   |   | 642,052   |   |   |   | 599,671   |   |   |   | 588,671   |   |   |   | 582,708 |   |
| Consumer                                         |   |   | 329,543   |   |   |   | 316,789   |   |   |   | 293,715   |   |   |   | 283,918   |   |   |   | 264,466 |   |
| Total loans                                      |   |   | 1,919,668 |   |   |   | 1,839,154 |   |   |   | 1,573,652 |   |   |   | 1,459,986 |   |   |   | 1,401,908 |   |
| Less allowance for loan losses                   |   |   | 27,400    |   |   |   | 23,725    |   |   |   | 20,277    |   |   |   | 18,894    |   |   |   | 17,918 |   |
| Net loans                                        |   |   | 1,892,268 |   |   |   | 1,815,429 |   |   |   | 1,553,375 |   |   |   | 1,441,092 |   |   |   | 1,383,990 |   |
| Investment in bank-owned life insurance          |   |   | 44,957    |   |   |   | 43,163    |   |   |   | 41,363    |   |   |   | 39,770    |   |   |   | 30,360 |   |
| Goodwill and other intangibles                   |   |   | 67,057    |   |   |   | 68,266    |   |   |   | 61,912    |   |   |   | 57,374    |   |   |   | 54,372 |   |
| Other assets                                     |   |   | 89,439    |   |   |   | 72,191    |   |   |   | 58,675    |   |   |   | 56,442    |   |   |   | 48,211 |   |
| Total assets                                     |   | $      | 2,884,473 |   |   | $      | 2,965,466 |   |   | $      | 2,539,940 |   |   | $      | 2,399,165 |   |   | $ | 2,402,003 |   |
| Liabilities:                                     |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Deposits:                                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Demand deposits                                  |   | $      | 194,046   |   |   | $      | 172,771   |   |   | $      | 175,542   |   |   | $      | 186,533   |   |   | $ | 196,102 |   |
| NOW accounts                                     |   |   | 202,367   |   |   |   | 171,306   |   |   |   | 164,944   |   |   |   | 175,479   |   |   |   | 178,677 |   |
| Money market accounts                            |   |   | 403,333   |   |   |   | 305,879   |   |   |   | 321,600   |   |   |   | 286,998   |   |   |   | 223,255 |   |
| Savings accounts                                 |   |   | 191,580   |   |   |   | 173,485   |   |   |   | 176,278   |   |   |   | 205,998   |   |   |   | 212,499 |   |
| Time deposits                                    |   |   | 931,684   |   |   |   | 967,427   |   |   |   | 807,841   |   |   |   | 822,989   |   |   |   | 828,725 |   |
| Total deposits                                   |   |   | 1,923,010 |   |   |   | 1,790,868 |   |   |   | 1,646,205 |   |   |   | 1,677,997 |   |   |   | 1,639,258 |   |
| FHLBB advances                                   |   |   | 607,328   |   |   |   | 829,626   |   |   |   | 616,417   |   |   |   | 474,561   |   |   |   | 545,323 |   |
| Junior subordinated debentures                   |   |   | 32,991    |   |   |   | 32,991    |   |   |   | 22,681    |   |   |   | 22,681    |   |   |   | 22,681 |   |
| Other borrowings                                 |   |   | 21,501    |   |   |   | 26,743    |   |   |   | 32,560    |   |   |   | 14,684    |   |   |   | 9,774 |   |
| Other liabilities                                |   |   | 44,697    |   |   |   | 50,127    |   |   |   | 35,564    |   |   |   | 36,186    |   |   |   | 26,521 |   |
| Shareholders' equity                             |   |   | 254,946   |   |   |   | 235,111   |   |   |   | 186,513   |   |   |   | 173,056   |   |   |   | 158,446 |   |
| Total liabilities and shareholders’ equity |   | $      | 2,884,473 |   |   | $      | 2,965,466 |   |   | $      | 2,539,940 |   |   | $      | 2,399,165 |   |   | $ | 2,402,003 |   |
|                                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
|                                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Asset Quality:                                   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Nonaccrual loans                                 |   | $      | 27,470    |   |   | $      | 7,777     |   |   | $      | 4,304     |   |   | $      | 2,723     |   |   | $ | 2,414 |   |
| Nonaccrual investment securities                 |   |   | 1,065     |   |   |   | 633       |   |   |   | –   |   |   |   | –   |   |   |   | – |   |
| Property acquired through foreclosure            |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| or repossession                                  |   |   | 1,974     |   |   |   | 392       |   |   |   | –   |   |   |   | –   |   |   |   | – |   |
| Total nonperforming assets                       |   | $      | 30,509    |   |   | $      | 8,802     |   |   | $      | 4,304     |   |   | $      | 2,723     |   |   | $ | 2,414 |   |
|                                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
|                                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Wealth Management Assets:                        |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Market value of assets under administration      |   | $      | 3,770,193 |   |   | $      | 3,147,649 |   |   | $      | 4,014,352 |   |   | $      | 3,609,180 |   |   | $ | 3,215,763 |   |
|                                             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |

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Table of Contents

| Selected Quarterly Financial Data                          |                              | (Dollars and shares in thousands, except per share amounts) |     |
|------------------------------------------------------------|-----------------------------------|-------------------------------------------------------------|----------|
|                                                       |                              |                                                        |     |
| 2009                                                       |                              |                                                        | Q1       |   |   |   | Q2 |   |   |   | Q3 |   |   |   | Q4 |   |   | Year |   |
| Interest income:                                           |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                                 |                              | $                                                           | 24,139   |   |   | $ | 24,147 |   |   | $ | 24,303 |   |   | $ | 24,207 |   |   | $ | 96,796 |   |
| Income on securities:                                      |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                    |                              |                                                        | 8,449    |   |   |   | 7,588 |   |   |   | 7,028 |   |   |   | 6,358 |   |   |   | 29,423 |   |
| Nontaxable                                                 |                              |                                                        | 780      |   |   |   | 778 |   |   |   | 781 |   |   |   | 777 |   |   |   | 3,116 |   |
| Dividends on corporate stock and FHLBB stock               |                              |                                                        | 72       |   |   |   | 55 |   |   |   | 63 |   |   |   | 55 |   |   |   | 245 |   |
| Other interest income                                      |                              |                                                        | 17       |   |   |   | 9 |   |   |   | 13 |   |   |   | 11 |   |   |   | 50 |   |
| Total interest income                                      |                              |                                                        | 33,457   |   |   |   | 32,577 |   |   |   | 32,188 |   |   |   | 31,408 |   |   |   | 129,630 |   |
| Interest expense:                                          |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                   |                              |                                                        | 9,547    |   |   |   | 8,481 |   |   |   | 7,577 |   |   |   | 7,033 |   |   |   | 32,638 |   |
| FHLBB advances                                             |                              |                                                        | 7,227    |   |   |   | 7,112 |   |   |   | 7,094 |   |   |   | 6,739 |   |   |   | 28,172 |   |
| Junior subordinated debentures                             |                              |                                                        | 479      |   |   |   | 479 |   |   |   | 545 |   |   |   | 444 |   |   |   | 1,947 |   |
| Other interest expense                                     |                              |                                                        | 245      |   |   |   | 244 |   |   |   | 246 |   |   |   | 246 |   |   |   | 981 |   |
| Total interest expense                                     |                              |                                                        | 17,498   |   |   |   | 16,316 |   |   |   | 15,462 |   |   |   | 14,462 |   |   |   | 63,738 |   |
| Net interest income                                        |                              |                                                        | 15,959   |   |   |   | 16,261 |   |   |   | 16,726 |   |   |   | 16,946 |   |   |   | 65,892 |   |
| Provision for loan losses                                  |                              |                                                        | 1,700    |   |   |   | 3,000 |   |   |   | 1,800 |   |   |   | 2,000 |   |   |   | 8,500 |   |
| Net interest income after provision for loan losses        |                              |                                                        | 14,259   |   |   |   | 13,261 |   |   |   | 14,926 |   |   |   | 14,946 |   |   |   | 57,392 |   |
| Noninterest income:                                        |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wealth management services:                                |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust and investment advisory fees                         |                              |                                                        | 4,122    |   |   |   | 4,402 |   |   |   | 4,717 |   |   |   | 4,887 |   |   |   | 18,128 |   |
| Mutual fund fees                                           |                              |                                                        | 915      |   |   |   | 993 |   |   |   | 1,089 |   |   |   | 1,143 |   |   |   | 4,140 |   |
| Financial planning, commissions and other service fees     |                              |                                                        | 376      |   |   |   | 559 |   |   |   | 243 |   |   |   | 340 |   |   |   | 1,518 |   |
| Wealth management services                                 |                              |                                                        | 5,413    |   |   |   | 5,954 |   |   |   | 6,049 |   |   |   | 6,370 |   |   |   | 23,786 |   |
| Service charges on deposit accounts                        |                              |                                                        | 1,113    |   |   |   | 1,201 |   |   |   | 1,257 |   |   |   | 1,289 |   |   |   | 4,860 |   |
| Merchant processing fees                                   |                              |                                                        | 1,349    |   |   |   | 2,086 |   |   |   | 2,619 |   |   |   | 1,790 |   |   |   | 7,844 |   |
| Income from bank-owned life insurance                      |                              |                                                        | 444      |   |   |   | 447 |   |   |   | 451 |   |   |   | 452 |   |   |   | 1,794 |   |
| Net gains on loan sales and commissions                    |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on loans originated for others                             |                              |                                                        | 1,044    |   |   |   | 1,552 |   |   |   | 591 |   |   |   | 1,165 |   |   |   | 4,352 |   |
| Net realized gains on securities                           |                              |                                                        | 57       |   |   |   | 257 |   |   |   | – |   |   |   | – |   |   |   | 314 |   |
| Net unrealized gains on interest rate swap contracts       |                              |                                                        | 60       |   |   |   | 341 |   |   |   | 92 |   |   |   | 204 |   |   |   | 697 |   |
| Other income                                               |                              |                                                        | 419      |   |   |   | 465 |   |   |   | 445 |   |   |   | 379 |   |   |   | 1,708 |   |
| Noninterest income, excluding other-than-temporary         |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment losses                                          |                              |                                                        | 9,899    |   |   |   | 12,303 |   |   |   | 11,504 |   |   |   | 11,649 |   |   |   | 45,355 |   |
| Total other-than-temporary impairment losses on securities |                              |                                                        | (4,244   | ) |   |   | – |   |   |   | (2,293 | ) |   |   | (113 | ) |   |   | (6,650 | ) |
| Portion of loss recognized in other comprehensive          |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (before taxes)                                      |                              |                                                        | 2,253    |   |   |   | – |   |   |   | 1,826 |   |   |   | (566 | ) |   |   | 3,513 |   |
| Net impairment losses recognized in earnings               |                              |                                                        | (1,991   | ) |   |   | – |   |   |   | (467 | ) |   |   | (679 | ) |   |   | (3,137 | ) |
| Total noninterest income                                   |                              |                                                        | 7,908    |   |   |   | 12,303 |   |   |   | 11,037 |   |   |   | 10,970 |   |   |   | 42,218 |   |
| Noninterest expense:                                       |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                             |                              |                                                        | 10,475   |   |   |   | 10,359 |   |   |   | 10,416 |   |   |   | 10,667 |   |   |   | 41,917 |   |
| Net occupancy                                              |                              |                                                        | 1,226    |   |   |   | 1,122 |   |   |   | 1,232 |   |   |   | 1,210 |   |   |   | 4,790 |   |
| Equipment                                                  |                              |                                                        | 975      |   |   |   | 1,036 |   |   |   | 916 |   |   |   | 990 |   |   |   | 3,917 |   |
| Merchant processing costs                                  |                              |                                                        | 1,143    |   |   |   | 1,780 |   |   |   | 2,213 |   |   |   | 1,516 |   |   |   | 6,652 |   |
| FDIC deposit insurance costs                               |                              |                                                        | 651      |   |   |   | 2,143 |   |   |   | 808 |   |   |   | 795 |   |   |   | 4,397 |   |
| Outsourced services                                        |                              |                                                        | 786      |   |   |   | 568 |   |   |   | 683 |   |   |   | 697 |   |   |   | 2,734 |   |
| Legal, audit and professional fees                         |                              |                                                        | 675      |   |   |   | 664 |   |   |   | 546 |   |   |   | 558 |   |   |   | 2,443 |   |
| Advertising and promotion                                  |                              |                                                        | 301      |   |   |   | 491 |   |   |   | 422 |   |   |   | 473 |   |   |   | 1,687 |   |
| Amortization of intangibles                                |                              |                                                        | 308      |   |   |   | 308 |   |   |   | 303 |   |   |   | 290 |   |   |   | 1,209 |   |
| Other expenses                                             |                              |                                                        | 1,850    |   |   |   | 1,858 |   |   |   | 1,653 |   |   |   | 2,061 |   |   |   | 7,422 |   |
| Total noninterest expense                                  |                              |                                                        | 18,390   |   |   |   | 20,329 |   |   |   | 19,192 |   |   |   | 19,257 |   |   |   | 77,168 |   |
| Income before income taxes                                 |                              |                                                        | 3,777    |   |   |   | 5,235 |   |   |   | 6,771 |   |   |   | 6,659 |   |   |   | 22,442 |   |
| Income tax expense                                         |                              |                                                        | 1,107    |   |   |   | 1,470 |   |   |   | 1,858 |   |   |   | 1,911 |   |   |   | 6,346 |   |
| Net income                                                 |                              | $                                                           | 2,670    |   |   | $ | 3,765 |   |   | $ | 4,913 |   |   | $ | 4,748 |   |   | $ | 16,096 |   |
| Weighted average shares outstanding - basic                |                              |                                                        | 15,942.7 |   |   |   | 15,983.6 |   |   |   | 16,016.8 |   |   |   | 16,035.4 |   |   |   | 15,994.9 |   |
| Weighted average shares outstanding - diluted              |                              |                                                        | 15,997.8 |   |   |   | 16,037.4 |   |   |   | 16,074.5 |   |   |   | 16,082.0 |   |   |   | 16,040.9 |   |
| Per share information:                                     | Basic earnings per share          |                                                        | $        | 0.17 |   |   | $ | 0.24 |   |   | $ | 0.31 |   |   | $ | 0.30 |   |   | $ | 1.01 |   |
|                                                       | Diluted earnings per share        |                                                        | $        | 0.17 |   |   | $ | 0.23 |   |   | $ | 0.31 |   |   | $ | 0.30 |   |   | $ | 1.00 |   |
|                                                       | Cash dividends declared per share |                                                        | $        | 0.21 |   |   | $ | 0.21 |   |   | $ | 0.21 |   |   | $ | 0.21 |   |   | $ | 0.84 |   |

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Table of Contents

| Selected Quarterly Financial Data                             |                              | (Dollars and shares in thousands, except per share amounts) |     |
|---------------------------------------------------------------|-----------------------------------|-------------------------------------------------------------|----------|
|                                                          |                              |                                                        |     |
| 2008                                                          |                              |                                                        | Q1       |   |   |   | Q2 |   |   |   | Q3 |   |   |   | Q4 |   |   | Year |   |
| Interest income:                                              |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and fees on loans                                    |                              | $                                                           | 24,970   |   |   | $ | 24,406 |   |   | $ | 25,520 |   |   | $ | 26,043 |   |   | $ | 100,939 |   |
| Income on securities:                                         |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                       |                              |                                                        | 8,416    |   |   |   | 8,302 |   |   |   | 8,504 |   |   |   | 9,160 |   |   |   | 34,382 |   |
| Nontaxable                                                    |                              |                                                        | 780      |   |   |   | 786 |   |   |   | 778 |   |   |   | 781 |   |   |   | 3,125 |   |
| Dividends on corporate stock and FHLBB stock                  |                              |                                                        | 620      |   |   |   | 489 |   |   |   | 407 |   |   |   | 366 |   |   |   | 1,882 |   |
| Other interest income                                         |                              |                                                        | 140      |   |   |   | 50 |   |   |   | 128 |   |   |   | 16 |   |   |   | 334 |   |
| Total interest income                                         |                              |                                                        | 34,926   |   |   |   | 34,033 |   |   |   | 35,337 |   |   |   | 36,366 |   |   |   | 140,662 |   |
| Interest expense:                                             |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                      |                              |                                                        | 11,899   |   |   |   | 9,248 |   |   |   | 9,884 |   |   |   | 10,164 |   |   |   | 41,195 |   |
| FHLBB advances                                                |                              |                                                        | 7,299    |   |   |   | 7,794 |   |   |   | 8,011 |   |   |   | 7,790 |   |   |   | 30,894 |   |
| Junior subordinated debentures                                |                              |                                                        | 338      |   |   |   | 509 |   |   |   | 524 |   |   |   | 508 |   |   |   | 1,879 |   |
| Other interest expense                                        |                              |                                                        | 314      |   |   |   | 275 |   |   |   | 274 |   |   |   | 318 |   |   |   | 1,181 |   |
| Total interest expense                                        |                              |                                                        | 19,850   |   |   |   | 17,826 |   |   |   | 18,693 |   |   |   | 18,780 |   |   |   | 75,149 |   |
| Net interest income                                           |                              |                                                        | 15,076   |   |   |   | 16,207 |   |   |   | 16,644 |   |   |   | 17,586 |   |   |   | 65,513 |   |
| Provision for loan losses                                     |                              |                                                        | 450      |   |   |   | 1,400 |   |   |   | 1,100 |   |   |   | 1,850 |   |   |   | 4,800 |   |
| Net interest income after provision for loan losses           |                              |                                                        | 14,626   |   |   |   | 14,807 |   |   |   | 15,544 |   |   |   | 15,736 |   |   |   | 60,713 |   |
| Noninterest income:                                           |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wealth management services:                                   |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust and investment advisory fees                            |                              |                                                        | 5,342    |   |   |   | 5,321 |   |   |   | 5,238 |   |   |   | 4,415 |   |   |   | 20,316 |   |
| Mutual fund fees                                              |                              |                                                        | 1,341    |   |   |   | 1,445 |   |   |   | 1,383 |   |   |   | 1,036 |   |   |   | 5,205 |   |
| Financial planning, commissions and other service fees        |                              |                                                        | 575      |   |   |   | 884 |   |   |   | 570 |   |   |   | 723 |   |   |   | 2,752 |   |
| Wealth management services                                    |                              |                                                        | 7,258    |   |   |   | 7,650 |   |   |   | 7,191 |   |   |   | 6,174 |   |   |   | 28,273 |   |
| Service charges on deposit accounts                           |                              |                                                        | 1,160    |   |   |   | 1,208 |   |   |   | 1,215 |   |   |   | 1,198 |   |   |   | 4,781 |   |
| Merchant processing fees                                      |                              |                                                        | 1,272    |   |   |   | 1,914 |   |   |   | 2,221 |   |   |   | 1,493 |   |   |   | 6,900 |   |
| Income from bank-owned life insurance                         |                              |                                                        | 447      |   |   |   | 453 |   |   |   | 452 |   |   |   | 448 |   |   |   | 1,800 |   |
| Net gains on loan sales and commissions                       |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on loans originated for others                                |                              |                                                        | 491      |   |   |   | 433 |   |   |   | 239 |   |   |   | 233 |   |   |   | 1,396 |   |
| Net realized gains on securities                              |                              |                                                        | 813      |   |   |   | 1,096 |   |   |   | – |   |   |   | 315 |   |   |   | 2,224 |   |
| Net unrealized gains (losses) on interest rate swap contracts |                              |                                                        | 119      |   |   |   | 26 |   |   |   | (24 | ) |   |   | (663 | ) |   |   | (542 | ) |
| Other income                                                  |                              |                                                        | 342      |   |   |   | 528 |   |   |   | 278 |   |   |   | 477 |   |   |   | 1,625 |   |
| Noninterest income, excluding other-than-temporary            |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment losses                                             |                              |                                                        | 11,902   |   |   |   | 13,308 |   |   |   | 11,572 |   |   |   | 9,675 |   |   |   | 46,457 |   |
| Total other-than-temporary impairment losses on securities    |                              |                                                        | (858     | ) |   |   | (1,149 | ) |   |   | (982 | ) |   |   | (2,948 | ) |   |   | (5,937 | ) |
| Portion of loss recognized in other comprehensive             |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (before taxes)                                         |                              |                                                        | –  |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Net impairment losses recognized in earnings                  |                              |                                                        | (858     | ) |   |   | (1,149 | ) |   |   | (982 | ) |   |   | (2,948 | ) |   |   | (5,937 | ) |
| Total noninterest income                                      |                              |                                                        | 11,044   |   |   |   | 12,159 |   |   |   | 10,590 |   |   |   | 6,727 |   |   |   | 40,520 |   |
| Noninterest expense:                                          |                              |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                |                              |                                                        | 10,343   |   |   |   | 10,411 |   |   |   | 10,580 |   |   |   | 9,703 |   |   |   | 41,037 |   |
| Net occupancy                                                 |                              |                                                        | 1,138    |   |   |   | 1,064 |   |   |   | 1,123 |   |   |   | 1,211 |   |   |   | 4,536 |   |
| Equipment                                                     |                              |                                                        | 944      |   |   |   | 977 |   |   |   | 956 |   |   |   | 961 |   |   |   | 3,838 |   |
| Merchant processing costs                                     |                              |                                                        | 1,068    |   |   |   | 1,598 |   |   |   | 1,857 |   |   |   | 1,246 |   |   |   | 5,769 |   |
| FDIC deposit insurance costs                                  |                              |                                                        | 256      |   |   |   | 251 |   |   |   | 265 |   |   |   | 272 |   |   |   | 1,044 |   |
| Outsourced services                                           |                              |                                                        | 636      |   |   |   | 742 |   |   |   | 700 |   |   |   | 781 |   |   |   | 2,859 |   |
| Legal, audit and professional fees                            |                              |                                                        | 543      |   |   |   | 430 |   |   |   | 626 |   |   |   | 726 |   |   |   | 2,325 |   |
| Advertising and promotion                                     |                              |                                                        | 386      |   |   |   | 467 |   |   |   | 376 |   |   |   | 500 |   |   |   | 1,729 |   |
| Amortization of intangibles                                   |                              |                                                        | 326      |   |   |   | 326 |   |   |   | 320 |   |   |   | 309 |   |   |   | 1,281 |   |
| Other expenses                                                |                              |                                                        | 1,502    |   |   |   | 1,788 |   |   |   | 1,668 |   |   |   | 2,366 |   |   |   | 7,324 |   |
| Total noninterest expense                                     |                              |                                                        | 17,142   |   |   |   | 18,054 |   |   |   | 18,471 |   |   |   | 18,075 |   |   |   | 71,742 |   |
| Income before income taxes                                    |                              |                                                        | 8,528    |   |   |   | 8,912 |   |   |   | 7,663 |   |   |   | 4,388 |   |   |   | 29,491 |   |
| Income tax expense                                            |                              |                                                        | 2,712    |   |   |   | 2,817 |   |   |   | 1,623 |   |   |   | 167 |   |   |   | 7,319 |   |
| Net income                                                    |                              | $                                                           | 5,816    |   |   | $ | 6,095 |   |   | $ | 6,040 |   |   | $ | 4,221 |   |   | $ | 22,172 |   |
| Weighted average shares outstanding - basic                   |                              |                                                        | 13,358.1 |   |   |   | 13,381.1 |   |   |   | 13,409.5 |   |   |   | 15,765.4 |   |   |   | 13,981.9 |   |
| Weighted average shares outstanding - diluted                 |                              |                                                        | 13,560.6 |   |   |   | 13,566.7 |   |   |   | 13,588.3 |   |   |   | 15,871.6 |   |   |   | 14,146.3 |   |
| Per share information:                                        | Basic earnings per share          |                                                        | $        | 0.44 |   |   | $ | 0.45 |   |   | $ | 0.45 |   |   | $ | 0.27 |   |   | $ | 1.59 |   |
|                                                          | Diluted earnings per share        |                                                        | $        | 0.43 |   |   | $ | 0.45 |   |   | $ | 0.44 |   |   | $ | 0.27 |   |   | $ | 1.57 |   |
|                                                          | Cash dividends declared per share |                                                        | $        | 0.20 |   |   | $ | 0.21 |   |   | $ | 0.21 |   |   | $ | 0.21 |   |   | $ | 0.83 |   |

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ITEM 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

| (1)   | Loss allocations are identified for individual loans deemed to be impaired in accordance with GAAP.  Impaired loans are loans for which it is probable that the Bank will not be able to collect all amounts due |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | according to the contractual terms of the loan agreements and loans restructured in a troubled debt restructuring.  Impaired loans do not include large groups of smaller-balance homogenous loans that are collectively evaluated for impairment, which consist of most residential mortgage loans and consumer loans.  Impairment ismeasured on a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or at the fair value of the collateral if the loan is collateral dependent.  Impairment is measured based on the fair value of the collateral less costs to sell if it is determined that foreclosure is probable.  For collateral dependent loans, management may adjust appraised values to reflect estimated market value declines or apply otherdiscounts to appraised values for unobservable factors resulting from its knowledge of circumstances associated with the property. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Loss allocation factors are used for non-impaired loans based on credit grade, loss experience, delinquency factors and other similar economic indicators. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | An additional unallocated allowance is maintained based on a judgmental process whereby management considers qualitative and quantitative assessments of other environmental factors.  For example, a significant portion of our loan portfolio is concentrated among borrowers in southern New England and a substantial portion of the portfoliois collateralized by real estate in this area.  A portion of the commercial loans and commercial mortgage loans are to borrowers in the hospitality, tourism and recreation industries.  Further, economic conditions which may affect the ability of borrowers to meet debt service requirements are considered, including interest rates and energy costs.  Results of regulatory examinations, portfolio composition, including a trend toward somewhat larger credit relationships, and other changesin the portfolio are also considered. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Years ended December 31,            |   |    |      |   | 2009     |   |    |   |   |   |    |   |   | 2008     |      |   |   |   |    |    |   |   | 2007     |   |   |   |      |
|------------------------------------------|--------|---------|-----------|--------|----------|--------|---------|--------|--------|--------|---------|--------|--------|----------|-----------|--------|--------|--------|---------|---------|--------|--------|----------|--------|--------|--------|-----------|
|                                     |   | Average |      |   |     |   |    | Yield/ |   |   | Average |   |   |     |      |   | Yield/ |   |    | Average |   |   |     |   |   | Yield/ |      |
| (Dollars in thousands)                   |   | Balance |      |   | Interest |   |    | Rate   |   |   | Balance |   |   | Interest |      |   | Rate   |   |    | Balance |   |   | Interest |   |   | Rate   |      |
| Assets:                                  |   |    |      |   |     |   |    |   |   |   |    |   |   |     |      |   |   |   |    |    |   |   |     |   |   |   |      |
| Commercial and other loans               |   | $       | 941,833   |   |     | $      | 50,092  |   |   |   | 5.32    |   |   | $        | 782,825   |   |   | $      | 50,589  |    |   |   | 6.46     |   |   | $      | 626,309   |   |   | $ | 47,713 |   |   |   | 7.62 |   |
| Residential real estate loans, including |   |    |      |   |     |   |    |   |   |   |    |   |   |     |      |   |   |   |    |    |   |   |     |   |   |   |      |   |   |   |   |   |   |   |   |   |
| mortgage loans held for sale             |   |    | 629,035   |   |     |   | 33,410  |   |   |   | 5.31    |   |   |     | 613,367   |   |   |   | 33,954  |    |   |   | 5.54     |   |   |   | 589,619   |   |   |   | 31,540 |   |   |   | 5.35 |   |
| Consumer loans                           |   |    | 323,576   |   |     |   | 13,494  |   |   |   | 4.17    |   |   |     | 301,653   |   |   |   | 16,584  |    |   |   | 5.50     |   |   |   | 283,873   |   |   |   | 19,634 |   |   |   | 6.92 |   |
| Total loans                              |   |    | 1,894,444 |   |     |   | 96,996  |   |   |   | 5.12    |   |   |     | 1,697,845 |   |   |   | 101,127 |    |   |   | 5.96     |   |   |   | 1,499,801 |   |   |   | 98,887 |   |   |   | 6.59 |   |
| Cash, federal funds sold and             |   |    |      |   |     |   |    |   |   |   |    |   |   |     |      |   |   |   |    |    |   |   |     |   |   |   |      |   |   |   |   |   |   |   |   |   |
| other short-term investments             |   |    | 20,201    |   |     |   | 50      |   |   |   | 0.25    |   |   |     | 21,515    |   |   |   | 334     |    |   |   | 1.55     |   |   |   | 16,759    |   |   |   | 831 |   |   |   | 4.96 |   |
| FHLBB stock                              |   |    | 42,008    |   |     |   | – |   |   |   | – |   |   |     | 39,282    |   |   |   | 1,345   |    |   |   | 3.42     |   |   |   | 28,905    |   |   |   | 1,915 |   |   |   | 6.62 |   |
|                                     |   |    |      |   |     |   |    |   |   |   |    |   |   |     |      |   |   |   |    |    |   |   |     |   |   |   |      |   |   |   |   |   |   |   |   |   |
| Taxable debt securities                  |   |    | 693,050   |   |     |   | 29,423  |   |   |   | 4.25    |   |   |     | 700,546   |   |   |   | 34,382  |    |   |   | 4.91     |   |   |   | 605,443   |   |   |   | 31,163 |   |   |   | 5.15 |   |
| Nontaxable debt securities               |   |    | 80,629    |   |     |   | 4,662   |   |   |   | 5.78    |   |   |     | 81,046    |   |   |   | 4,583   |    |   |   | 5.65     |   |   |   | 77,601    |   |   |   | 4,368 |   |   |   | 5.63 |   |
| Corporate stocks                         |   |    | 5,618     |   |     |   | 339     |   |   |   | 6.05    |   |   |     | 9,426     |   |   |   | 740     |    |   |   | 7.85     |   |   |   | 13,639    |   |   |   | 1,132 |   |   |   | 8.29 |   |
| Total securities                         |   |    | 779,297   |   |     |   | 34,424  |   |   |   | 4.42    |   |   |     | 791,018   |   |   |   | 39,705  |    |   |   | 5.02     |   |   |   | 696,683   |   |   |   | 36,663 |   |   |   | 5.26 |   |
| Total interest-earning assets            |   |    | 2,735,950 |   |     |   | 131,470 |   |   |   | 4.81    |   |   |     | 2,549,660 |   |   |   | 142,511 |    |   |   | 5.59     |   |   |   | 2,242,148 |   |   |   | 138,296 |   |   |   | 6.17 |   |
| Noninterest-earning assets               |   |    | 185,345   |   |     |   |    |   |   |   |    |   |   |     | 163,730   |   |   |   |    |    |   |   |     |   |   |   | 165,561   |   |   |   |   |   |   |   |   |   |
| Total assets                             |   | $       | 2,921,295 |   |     |   |    |   |   |   |    |   |   | $        | 2,713,390 |   |   |   |    |    |   |   |     |   |   | $      | 2,407,709 |   |   |   |   |   |   |   |   |   |
| Liabilities and                          |   |    |      |   |     |   |    |   |   |   |    |   |   |     |      |   |   |   |    |    |   |   |     |   |   |   |      |   |   |   |   |   |   |   |   |   |
| shareholders’ equity:              |   |    |      |   |     |   |    |   |   |   |    |   |   |     |      |   |   |   |    |    |   |   |     |   |   |   |      |   |   |   |   |   |   |   |   |   |
| NOW accounts                             |   | $       | 181,171   |   |     | $      | 327     |   |   |   | 0.18    |   |   | $        | 165,479   |   |   | $      | 306     |    |   |   | 0.18     |   |   | $      | 166,580   |   |   | $ | 285 |   |   |   | 0.17 |   |
| Money market accounts                    |   |    | 375,175   |   |     |   | 3,960   |   |   |   | 1.06    |   |   |     | 310,445   |   |   |   | 6,730   |    |   |   | 2.17     |   |   |   | 303,138   |   |   |   | 11,846 |   |   |   | 3.91 |   |
| Savings accounts                         |   |    | 187,862   |   |     |   | 530     |   |   |   | 0.28    |   |   |     | 173,840   |   |   |   | 1,059   |    |   |   | 0.61     |   |   |   | 194,342   |   |   |   | 2,619 |   |   |   | 1.35 |   |
| Time deposits                            |   |    | 957,449   |   |     |   | 27,821  |   |   |   | 2.91    |   |   |     | 861,814   |   |   |   | 33,100  |    |   |   | 3.84     |   |   |   | 821,951   |   |   |   | 37,672 |   |   |   | 4.58 |   |
| FHLBB advances                           |   |    | 687,210   |   |     |   | 28,172  |   |   |   | 4.10    |   |   |     | 737,830   |   |   |   | 30,894  |    |   |   | 4.19     |   |   |   | 489,229   |   |   |   | 21,641 |   |   |   | 4.42 |   |
| Junior subordinated debentures           |   |    | 32,991    |   |     |   | 1,947   |   |   |   | 5.90    |   |   |     | 30,259    |   |   |   | 1,879   |    |   |   | 6.21     |   |   |   | 22,681    |   |   |   | 1,352 |   |   |   | 5.96 |   |
| Other                                    |   |    | 21,476    |   |     |   | 981     |   |   |   | 4.57    |   |   |     | 26,678    |   |   |   | 1,181   |    |   |   | 4.43     |   |   |   | 23,990    |   |   |   | 1,075 |   |   |   | 4.48 |   |
| Total interest-bearing liabilities       |   |    | 2,443,334 |   |     |   | 63,738  |   |   |   | 2.61    |   |   |     | 2,306,345 |   |   |   | 75,149  |    |   |   | 3.26     |   |   |   | 2,021,911 |   |   |   | 76,490 |   |   |   | 3.78 |   |
| Demand deposits                          |   |    | 187,800   |   |     |   |    |   |   |   |    |   |   |     | 177,032   |   |   |   |    |    |   |   |     |   |   |   | 177,342   |   |   |   |   |   |   |   |   |   |
| Other liabilities                        |   |    | 44,712    |   |     |   |    |   |   |   |    |   |   |     | 30,618    |   |   |   |    |    |   |   |     |   |   |   | 31,886    |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity               |   |    | 245,449   |   |     |   |    |   |   |   |    |   |   |     | 199,395   |   |   |   |    |    |   |   |     |   |   |   | 176,570   |   |   |   |   |   |   |   |   |   |
| Total liabilities and                    |   |    |      |   |     |   |    |   |   |   |    |   |   |     |      |   |   |   |    |    |   |   |     |   |   |   |      |   |   |   |   |   |   |   |   |   |
| shareholders’ equity               |   | $       | 2,921,295 |   |     |   |    |   |   |   |    |   |   | $        | 2,713,390 |   |   |   |    |    |   |   |     |   |   | $      | 2,407,709 |   |   |   |   |   |   |   |   |   |
| Net interest income                      |   |    |      |   |     | $      | 67,732  |   |   |   |    |   |   |     |      |   |   | $      | 67,362  |    |   |   |     |   |   |   |      |   |   | $ | 61,806 |   |   |   |   |   |
| Interest rate spread                     |   |    |      |   |     |   |    |   |   |   | 2.20    |   |   |     |      |   |   |   |    |    |   |   | 2.33     |   |   |   |      |   |   |   |   |   |   |   | 2.39 |   |
| Net interest margin                      |   |    |      |   |     |   |    |   |   |   | 2.48    |   |   |     |      |   |   |   |    |    |   |   | 2.64     |   |   |   |      |   |   |   |   |   |   |   | 2.76 |   |

| (Dollars in thousands)        |   |   |   |   |   |   |   |   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                          |   |   |   |   |   |   |   |   |   |
| Years ended December 31, |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Commercial and other loans    |   | $      | 200    |   |   | $      | 188    |   |   | $ | 167 |   |
| Nontaxable debt securities    |   |   | 1,546  |   |   |   | 1,458  |   |   |   | 1,385 |   |
| Corporate stocks              |   |   | 94     |   |   |   | 203    |   |   |   | 310 |   |
| Total                         |   | $      | 1,840  |   |   | $      | 1,849  |   |   | $ | 1,862 |   |

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|                                      |   |   |   |   |  2009/2008 |   |    |       |   |   |    |   |   |  2008/2007 |   |   |       |   |
|-------------------------------------------|--------|--------|--------|--------|-----------------|--------|---------|------------|--------|--------|---------|--------|--------|-----------------|--------|--------|------------|--------|
| (Dollars in thousands)                    |   | Volume |   |   | Rate            |   |    | Net Change |   |   | Volume  |   |   | Rate            |   |   | Net Change |   |
| Interest on interest-earning assets:      |   |   |   |   |            |   |    |       |   |   |    |   |   |            |   |   |       |   |   |   |
| Commercial and other loans                |   | $      | 9,285  |   |            | $      | (9,782  | )          |   | $      | (497    | )      |   | $               | 10,817 |   |       | $      | (7,941 | ) |   | $ | 2,876 |   |
| Residential real estate loans, including  |   |   |   |   |            |   |    |       |   |   |    |   |   |            |   |   |       |   |   |   |   |   |   |   |
| mortgage loans held for sale              |   |   | 867    |   |            |   | (1,411  | )          |   |   | (544    | )      |   |            | 1,284  |   |       |   | 1,130 |   |   |   | 2,414 |   |
| Consumer loans                            |   |   | 1,140  |   |            |   | (4,230  | )          |   |   | (3,090  | )      |   |            | 1,172  |   |       |   | (4,222 | ) |   |   | (3,050 | ) |
| Cash, federal funds sold and              |   |   |   |   |            |   |    |       |   |   |    |   |   |            |   |   |       |   |   |   |   |   |   |   |
| other short-term investments              |   |   | (19    | )      |            |   | (265    | )          |   |   | (284    | )      |   |            | 189    |   |       |   | (686 | ) |   |   | (497 | ) |
| FHLBB stock                               |   |   | 87     |   |            |   | (1,432  | )          |   |   | (1,345  | )      |   |            | 546    |   |       |   | (1,116 | ) |   |   | (570 | ) |
| Taxable debt securities                   |   |   | (366   | )      |            |   | (4,593  | )          |   |   | (4,959  | )      |   |            | 4,724  |   |       |   | (1,505 | ) |   |   | 3,219 |   |
| Nontaxable debt securities                |   |   | (24    | )      |            |   | 103     |       |   |   | 79      |   |   |            | 198    |   |       |   | 17 |   |   |   | 215 |   |
| Corporate stocks                          |   |   | (255   | )      |            |   | (146    | )          |   |   | (401    | )      |   |            | (335   | )      |       |   | (57 | ) |   |   | (392 | ) |
| Total interest income                     |   |   | 10,715 |   |            |   | (21,756 | )          |   |   | (11,041 | )      |   |            | 18,595 |   |       |   | (14,380 | ) |   |   | 4,215 |   |
| Interest on interest-bearing liabilities: |   |   |   |   |            |   |    |       |   |   |    |   |   |            |   |   |       |   |   |   |   |   |   |   |
| NOW accounts                              |   |   | 22     |   |            |   | (1      | )          |   |   | 21      |   |   |            | (1     | )      |       |   | 22 |   |   |   | 21 |   |
| Money market accounts                     |   |   | 1,194  |   |            |   | (3,964  | )          |   |   | (2,770  | )      |   |            | 279    |   |       |   | (5,395 | ) |   |   | (5,116 | ) |
| Savings accounts                          |   |   | 80     |   |            |   | (609    | )          |   |   | (529    | )      |   |            | (252   | )      |       |   | (1,308 | ) |   |   | (1,560 | ) |
| Time deposits                             |   |   | 3,378  |   |            |   | (8,657  | )          |   |   | (5,279  | )      |   |            | 1,753  |   |       |   | (6,325 | ) |   |   | (4,572 | ) |
| FHLBB advances                            |   |   | (2,073 | )      |            |   | (649    | )          |   |   | (2,722  | )      |   |            | 10,435 |   |       |   | (1,182 | ) |   |   | 9,253 |   |
| Junior subordinated debentures            |   |   | 164    |   |            |   | (96     | )          |   |   | 68      |   |   |            | 468    |   |       |   | 59 |   |   |   | 527 |   |
| Other                                     |   |   | (236   | )      |            |   | 36      |       |   |   | (200    | )      |   |            | 119    |   |       |   | (13 | ) |   |   | 106 |   |
| Total interest expense                    |   |   | 2,529  |   |            |   | (13,940 | )          |   |   | (11,411 | )      |   |            | 12,801 |   |       |   | (14,142 | ) |   |   | (1,341 | ) |
| Net interest income                       |   | $      | 8,186  |   |            | $      | (7,816  | )          |   | $      | 370     |   |   | $               | 5,794  |   |       | $      | (238 | ) |   | $ | 5,556 |   |

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|                                               |   |                          |   |   |  2009/2008 |   |    |  2008/2007 |   |
|----------------------------------------------------|--------|-------------------------------|--------|--------|-----------------|--------|---------|-----------------|--------|
|                                               |   | Years Ended December 31, |   |   | Change          |   |    | Change          |   |
|                                               |   | 2009                          |   |   | 2008            |   |    | 2007            |   |   |   | $ |   |   |   | % |   |   |  $   |   |   |   | % |   |
| Noninterest income:                                |   |                          |   |   |            |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wealth management services:                        |   |                          |   |   |            |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trust and investment advisory fees                 |   | $                             | 18,128 |   |            | $      | 20,316  |            |   | $ | 21,124 |   |   | $ | (2,188 | ) |   |   | (11 | )% |   | $ | (808 | ) |   |   | (4 | )% |
| Mutual fund fees                                   |   |                          | 4,140  |   |            |   | 5,205   |            |   |   | 5,430 |   |   |   | (1,065 | ) |   |   | (20 | ) |   |   | (225 | ) |   |   | (4 | ) |
| Financial planning, commissions                    |   |                          |   |   |            |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and other service fees                             |   |                          | 1,518  |   |            |   | 2,752   |            |   |   | 2,462 |   |   |   | (1,234 | ) |   |   | (45 | ) |   |   | 290 |   |   |   | 12 |   |
| Wealth management services                         |   |                          | 23,786 |   |            |   | 28,273  |            |   |   | 29,016 |   |   |   | (4,487 | ) |   |   | (16 | ) |   |   | (743 | ) |   |   | (3 | ) |
| Service charges on deposit accounts                |   |                          | 4,860  |   |            |   | 4,781   |            |   |   | 4,713 |   |   |   | 79 |   |   |   | 2 |   |   |   | 68 |   |   |   | 1 |   |
| Merchant processing fees                           |   |                          | 7,844  |   |            |   | 6,900   |            |   |   | 6,710 |   |   |   | 944 |   |   |   | 14 |   |   |   | 190 |   |   |   | 3 |   |
| Income from bank-owned life insurance              |   |                          | 1,794  |   |            |   | 1,800   |            |   |   | 1,593 |   |   |   | (6 | ) |   |   | – |   |   |   | 207 |   |   |   | 13 |   |
| Net gains on loan sales and commissions            |   |                          |   |   |            |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on loans originated for others                     |   |                          | 4,352  |   |            |   | 1,396   |            |   |   | 1,493 |   |   |   | 2,956 |   |   |   | 212 |   |   |   | (97 | ) |   |   | (6 | ) |
| Net realized gains on securities                   |   |                          | 314    |   |            |   | 2,224   |            |   |   | 455 |   |   |   | (1,910 | ) |   |   | (86 | ) |   |   | 1,769 |   |   |   | 389 |   |
| Net gains (losses) on interest rate swap contracts |   |                          | 697    |   |            |   | (542    | )               |   |   | 27 |   |   |   | 1,239 |   |   |   | (229 | ) |   |   | (569 | ) |   |   | (2,107 | ) |
| Other income                                       |   |                          | 1,708  |   |            |   | 1,625   |            |   |   | 1,502 |   |   |   | 83 |   |   |   | 5 |   |   |   | 123 |   |   |   | 8 |   |
| Noninterest income, excluding                      |   |                          |   |   |            |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| other-than-temporary impairment losses             |   |                          | 45,355 |   |            |   | 46,457  |            |   |   | 45,509 |   |   |   | (1,102 | ) |   |   | (2 | ) |   |   | 948 |   |   |   | 2 |   |
| Total other-than-temporary impairment losses       |   |                          |   |   |            |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on securities                                      |   |                          | (6,650 | )      |            |   | (5,937  | )               |   |   | – |   |   |   | (713 | ) |   |   | 12 |   |   |   | (5,937 | ) |   |   | – |   |
| Portion of loss recognized in other comprehensive  |   |                          |   |   |            |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (before taxes)                              |   |                          | 3,513  |   |            |   | – |            |   |   | – |   |   |   | 3,513 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Net impairment losses recognized in earnings       |   |                          | (3,137 | )      |            |   | (5,937  | )               |   |   | – |   |   |   | 2,800 |   |   |   | (47 | ) |   |   | (5,937 | ) |   |   | – |   |
| Total noninterest income                           |   | $                             | 42,218 |   |            | $      | 40,520  |            |   | $ | 45,509 |   |   | $ | 1,698 |   |   |   | 4 | % |   | $ | (4,989 | ) |   |   | (11 | )% |

| (Dollars in thousands)                                  |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|---------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Wealth Management Assets Under Administration:          |   |   |      |   |   |   |      |   |   |
| Balance at the beginning of period                      |   | $      | 3,147,649 |   |   | $      | 4,014,352 |   |   | $ | 3,609,180 |   |
| Net market value appreciation (depreciation) and income |   |   | 547,091   |   |   |   | (980,909  | )      |   |   | 272,398 |   |
| Net client cash flows                                   |   |   | 75,453    |   |   |   | 114,206   |   |   |   | 132,774 |   |
| Balance at the end of period                            |   | $      | 3,770,193 |   |   | $      | 3,147,649 |   |   | $ | 4,014,352 |   |

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|                               |   |                          |    |   |   |  2009/2008 |    |   |  2008/2007 |   |
|------------------------------------|--------|-------------------------------|---------|--------|--------|-----------------|---------|--------|-----------------|--------|
|                               |   | Years Ended December 31, |    |   |   | Change          |    |   | Change          |   |
|                               |   | 2009                          |    |   | 2008   |            |    | 2007   |            |   |   |   | $ |   |   |   | % |   |   |  $ |   |   |   | % |   |
| Noninterest expense                |   |                          |    |   |   |            |    |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits     |   | $                             | 41,917  |   |   | $               | 41,037  |   |            | $      | 39,986 |   |   |   | $ | 880 |   |   |   | 2 | % |   | $ | 1,051 |   |   |   | 3 | % |
| Net occupancy                      |   |                          | 4,790   |   |   |            | 4,536   |   |            |   | 4,150 |   |   |   |   | 254 |   |   |   | 6 |   |   |   | 386 |   |   |   | 9 |   |
| Equipment                          |   |                          | 3,917   |   |   |            | 3,838   |   |            |   | 3,473 |   |   |   |   | 79 |   |   |   | 2 |   |   |   | 365 |   |   |   | 11 |   |
| Merchant processing costs          |   |                          | 6,652   |   |   |            | 5,769   |   |            |   | 5,686 |   |   |   |   | 883 |   |   |   | 15 |   |   |   | 83 |   |   |   | 1 |   |
| FDIC deposit insurance costs       |   |                          | 4,397   |   |   |            | 1,044   |   |            |   | 213 |   |   |   |   | 3,353 |   |   |   | 321 |   |   |   | 831 |   |   |   | 390 |   |
| Outsourced services                |   |                          | 2,734   |   |   |            | 2,859   |   |            |   | 2,180 |   |   |   |   | (125 | ) |   |   | (4 | ) |   |   | 679 |   |   |   | 31 |   |
| Legal, audit and professional fees |   |                          | 2,443   |   |   |            | 2,325   |   |            |   | 1,761 |   |   |   |   | 118 |   |   |   | 5 |   |   |   | 564 |   |   |   | 32 |   |
| Advertising and promotion          |   |                          | 1,687   |   |   |            | 1,729   |   |            |   | 2,024 |   |   |   |   | (42 | ) |   |   | (2 | ) |   |   | (295 | ) |   |   | (15 | ) |
| Amortization of intangibles        |   |                          | 1,209   |   |   |            | 1,281   |   |            |   | 1,383 |   |   |   |   | (72 | ) |   |   | (6 | ) |   |   | (102 | ) |   |   | (7 | ) |
| Debt prepayment penalties          |   |                          | – |   |   |            | – |   |            |   | 1,067 |   |   |   |   | – |   |   |   | – |   |   |   | (1,067 | ) |   |   | (100 | ) |
| Other                              |   |                          | 7,422   |   |   |            | 7,324   |   |            |   | 6,983 |   |   |   |   | 98 |   |   |   | 1 |   |   |   | 341 |   |   |   | 5 |   |
| Total noninterest expense          |   | $                             | 77,168  |   |   | $               | 71,742  |   |            | $      | 68,906 |   |   |   | $ | 5,426 |   |   |   | 8 | % |   | $ | 2,836 |   |   |   | 4 | % |

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| (Dollars in thousands)                               |   |   |    |   |   |   |    |   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| December 31,                                         |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|                                                 |   | Amount |    |   | %      |   |    | Amount |   |   | % |   |   | Amount |   |   | % |   |
| Securities Available for Sale:                       |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Obligations of U.S. government-sponsored enterprises |   | $      | 45,240  |   |   |   | 7       | %      |   | $ | 64,377 |   |   |   | 7 | % |   | $ | 139,599 |   |   |   | 18 | % |
| Mortgage-backed securities issued by U.S. government |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agencies and U.S. government-sponsored enterprises   |   |   | 523,446 |   |   |   | 75      | %      |   |   | 683,619 |   |   |   | 80 | % |   |   | 469,388 |   |   |   | 62 | % |
| States and political subdivisions                    |   |   | 82,062  |   |   |   | 12      | %      |   |   | 81,213 |   |   |   | 9 | % |   |   | 80,894 |   |   |   | 11 | % |
| Trust preferred securities:                          |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individual name issuers                              |   |   | 20,586  |   |   |   | 3       | %      |   |   | 16,793 |   |   |   | 2 | % |   |   | 27,695 |   |   |   | 4 | % |
| Collateralized debt obligations                      |   |   | 1,065   |   |   |   | – | %      |   |   | 1,940 |   |   |   | – | % |   |   | 6,759 |   |   |   | 1 | % |
| Corporate bonds                                      |   |   | 14,706  |   |   |   | 2       | %      |   |   | 13,576 |   |   |   | 2 | % |   |   | 14,101 |   |   |   | 2 | % |
| Common stocks                                        |   |   | 769     |   |   |   | – | %      |   |   | 992 |   |   |   | – | % |   |   | 6,781 |   |   |   | 1 | % |
| Perpetual preferred stocks                           |   |   | 3,610   |   |   |   | 1       | %      |   |   | 3,709 |   |   |   | – | % |   |   | 6,561 |   |   |   | 1 | % |
| Total securities available for sale                  |   | $      | 691,484 |   |   |   | 100     | %      |   | $ | 866,219 |   |   |   | 100 | % |   | $ | 751,778 |   |   |   | 100 | % |

| (Dollars in thousands)             |                   |
|------------------------------------|------------------------|
|                               | December 31, 2009 | Credit Ratings |
| Named Issuer                       |                   | Amortized | Fair | Unrealized | December 31,2009 |   | Form 10-KFiling Date |
| (parent holding company)           | (a)                    | Cost (b) | Value | Loss | Moody's | S&P |   | Moody's | S&P |
| JPMorgan Chase & Co.           | 2                      | $9,714 | $6,891 | $(2,823) | A2 | BBB+ |   |   | A2 | BBB+ |   |
| Bank of America Corporation        | 3                      | 5,726 | 4,058 | (1,668) | Baa3 | BB | (c) |   | Baa3 | BB | (c) |
| Wells Fargo & Company          | 2                      | 5,099 | 3,241 | (1,858) | Baa1/Baa2 | A- |   |   | Baa1/Baa2 | A- |   |
| SunTrust Banks, Inc.               | 1                      | 4,163 | 2,607 | (1,556) | Baa2 | BB+ | (c) |   | Baa3 | BB | (c) |
| Northern Trust Corporation         | 1                      | 1,979 | 1,333 | (646) | A2 | A- |   |   | A3 | A- |   |
| State Street Corporation           | 1                      | 1,967 | 1,633 | (334) | A2 | BBB+ |   |   | A3 | BBB+ |   |
| Huntington Bancshares Incorporated | 1                      | 1,915 | 823 | (1,092) | Baa3 | B | (c) |   | Ba1 (c) | B | (c) |
| Totals                             |                   | $30,563 | $20,586 | $(9,977) |   |

| (a) | Number of separate issuances, including issuances of acquired institutions. |
|-----|-----------------------------------------------------------------------------|

| (b) | Net of other-than-temporary impairment losses recognized in earnings, other than such noncredit-related amounts reversed on January 1, 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Rating is below investment grade. |
|-----|-----------------------------------|

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| (Dollars in thousands)                                 | December 31, 2009 |   |
|--------------------------------------------------------|------------------------|--------|
|                                                   |                   |   |   |   | Deferrals | Credit Ratings |
|                                                   | Amortized              | Fair   | Unrealized | No. ofCos. in | andDefaults | December 31,2009 |   | Form 10-KFiling Date |
| Deal Name                                              | Cost                   | Value  | Loss | Issuance | (a) | Moody's | S&P |   | Moody's | S&P |
| Tropic CDO 1,tranche A4L (d)                           | $3,620                 | $978   | $(2,642) | 38 | 36.7% | Ca | (c) | (b) |   | Ca | (c) | (b) |
| Preferred Term Securities [PreTSL] XXV, tranche C1 (e) | 1,346                  | 87     | $(1,259) | 73 | 31.0% | Ca | (c) | (b) |   | Ca | (c) | (b) |
| Totals                                                 | $4,966                 | $1,065 | $(3,901) |   |   |   |   |   |   |   |   |   |

| (a) | Percentage of pool collateral in deferral or default status. |
|-----|--------------------------------------------------------------|

| (b) | Not rated by S&P. |
|-----|-----------------------|

| (c) | Rating is below investment grade. |
|-----|-----------------------------------|

| (d) | Based on information available as of the filing date of this report, 15 of the 38 pooled institutions have invoked their original contractual right to defer interest payments.  A total of $110.2 million of the underlying collateral pool was in deferral or default status, or 36.7% of the total original collateral balance of $300 million.  The tranche instrument held by the Corporationwas current with respect to its quarterly debt service (interest) payments as of the most recent quarterly payment date of January 15, 2010.  The instrument was downgraded to a below investment grade rating of “Caa3” by Moody’s on March 27, 2009 and further downgraded by Moody’s to a rating of “Ca” on October 30, 2009.  During the quarter ended March 31, 2009, an adverse change occurred in the expected cash flows for this instrument indicatingthat, 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 an other-than-temporary impairment chargeof $3.6 million pursuant to the provisions of ASC 320, which the Corporation early adopted effective January 1, 2009.  The credit loss portion of the impairment charge, representing the amount by which the present value of cash flows expected to be collected is less than the amortized cost basis of the debt security, was $1.4 million.  This investment security was also placed on nonaccrual status as of March 31, 2009.  The analysis of the expected cash flows forthis security as of December 31, 2009 and the rating downgrade on October 30, 2009 did not negatively affect the amount of credit-related impairment loss previously recognized on this security. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Based on information available as of the filing date of this report, 20 of the 73 pooled institutions have invoked their original contractual right to defer interest payments.  A total of $271.6 million of the underlying collateral pool was in deferral or default status, or 31.0% of the total original collateral pool of $877.4 million.  The tranche instrument held by the Corporationhad deferred the quarterly interest payment due in December 2008.   |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | The instrument was downgraded to a below investment grade rating of “Ca” by Moody’s on March 27, 2009.  This security began deferring interest payments until future periods and the Corporation recognized an other-than-temporary impairment charge in the fourth quarter of 2008 on this security in the amount of $1.9 million.  This investment security was also placedon nonaccrual status as of December 31, 2008.  Pursuant to the provisions of ASC 320 adopted effective January 1, 2009 and based on Washington Trust’s assessment of the facts associated with this instrument, the Corporation has concluded that there was no credit loss portion of the other-than-temporary impairment charge as of December 31, 2008.  Washington Trust reclassified this noncredit-related other-than-temporary impairment loss for this security previously recognizedin earnings in the fourth quarter of 2008 as a cumulative effect adjustment as of January 1, 2009 in the amount of $1.2 million after taxes ($1.9 million before taxes) with an increase in retained earnings and a decrease in accumulated other comprehensive loss.  In addition, the amortized cost basis of this security was increased by the amount of the cumulative effect adjustment before taxes.  During the quarter ended September 30, 2009, an adverse change occurred in the expectedcash 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 September 30, 2009 and recognizedan other-than-temporary impairment charge of $2.3 million pursuant to the provisions of ASC 320 adopted effective January 1, 2009.  The credit loss portion of the impairment charge, representing the amount by which the present value of cash flows expected to be collected is less than the amortized cost basis of the debt security, was $467 thousand.  The analysis of the expected cash flows for this security as of December 31, 2009 resulted in an additional credit-relatedimpairment loss of $679 thousand being recognized in earnings in the fourth quarter of 2009. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | At December 31, 2009 |   |
|---------------------------------------------|--------|---------------------------|--------|
|                                        |   | Amortized                 |   |   | Unrealized |   |   | Fair |   |
| (Dollars in thousands)                      |   | Cost (a)                  |   |   | Gains |   |   | Losses |   |   | Value |   |
| Common and perpetual preferred stocks       |   |                      |   |   |   |   |   |   |   |   |   |   |
| Common stocks                               |   | $                         | 658    |   |   | $ | 111 |   |   | $ | – |   |   | $ | 769 |   |
| Perpetual preferred stocks:                 |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financials                                  |   |                      | 2,354  |   |   |   | 396 |   |   |   | (27 | ) |   |   | 2,723 |   |
| Utilities                                   |   |                      | 1,000  |   |   |   | – |   |   |   | (113 | ) |   |   | 887 |   |
| Total perpetual preferred stocks            |   |                      | 3,354  |   |   |   | 396 |   |   |   | (140 | ) |   |   | 3,610 |   |
| Total common and perpetual preferred stocks |   | $                         | 4,012  |   |   | $ | 507 |   |   | $ | (140 | ) |   | $ | 4,379 |   |

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

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| (Dollars in thousands)                                        |   |   |    |   |   |   |    |   |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                          |   |   |    |   |   |   |    |   |   |
| Years ended December 31,                                 |   | 2009   |    |   | 2008   |   |    | 2007   |   |
| Pooled trust preferred securities                             |   |   |    |   |   |   |    |   |   |
| Tropic CDO 1, tranche A4L                                     |   | $      | 1,350   |   |   | $      | – |   |   | $ | – |   |
| Preferred Term Securities [PreTSL] XXV, tranche C1            |   |   | 1,146   |   |   |   | 1,859   |   |   |   | – |   |
| Common and perpetual preferred stocks                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Fannie Mae and Freddie Mac perpetual preferred stocks         |   |   | – |   |   |   | 1,470   |   |   |   | – |   |
| Other perpetual preferred stocks (financials)                 |   |   | 495     |   |   |   | 2,173   |   |   |   | – |   |
| Other common stocks (financials)                              |   |   | 146     |   |   |   | 435     |   |   |   | – |   |
| Other-than-temporary impairment losses recognized in earnings |   | $      | 3,137   |   |   | $      | 5,937   |   |   | $ | – |   |

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| (Dollars in thousands)         |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |
|--------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
| December 31,                   |   | 2009   |      |   | 2008   |   |   | 2007   |   |   | 2006      |   |   | 2005   |   |
|                           |   | Amount |      |   | %      |   |   | Amount |   |   | %         |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
| Commercial:                    |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgages                      |   | $      | 496,996   |   |   |   | 26     | %      |   | $      | 407,904   |   |   |   | 22     | % |   | $ | 278,821 |   |   |   | 18 | % |   | $ | 282,019 |   |   |   | 19 | % |   | $ | 291,292 |   |   |   | 21 | % |
| Construction & development |   |   | 72,293    |   |   |   | 4      | %      |   |   | 49,599    |   |   |   | 3      | % |   |   | 60,361 |   |   |   | 4 | % |   |   | 32,233 |   |   |   | 2 | % |   |   | 37,190 |   |   |   | 3 | % |
| Other  (1)           |   |   | 415,261   |   |   |   | 21     | %      |   |   | 422,810   |   |   |   | 23     | % |   |   | 341,084 |   |   |   | 21 | % |   |   | 273,145 |   |   |   | 19 | % |   |   | 226,252 |   |   |   | 16 | % |
| Total commercial               |   |   | 984,550   |   |   |   | 51     | %      |   |   | 880,313   |   |   |   | 48     | % |   |   | 680,266 |   |   |   | 43 | % |   |   | 587,397 |   |   |   | 40 | % |   |   | 554,734 |   |   |   | 40 | % |
| Residential real estate:       |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgages                      |   |   | 593,981   |   |   |   | 31     | %      |   |   | 626,663   |   |   |   | 34     | % |   |   | 588,628 |   |   |   | 37 | % |   |   | 577,522 |   |   |   | 40 | % |   |   | 565,680 |   |   |   | 40 | % |
| Homeowner construction         |   |   | 11,594    |   |   |   | 1      | %      |   |   | 15,389    |   |   |   | 1      | % |   |   | 11,043 |   |   |   | 1 | % |   |   | 11,149 |   |   |   | – | % |   |   | 17,028 |   |   |   | 2 | % |
| Total residential real estate  |   |   | 605,575   |   |   |   | 32     | %      |   |   | 642,052   |   |   |   | 35     | % |   |   | 599,671 |   |   |   | 38 | % |   |   | 588,671 |   |   |   | 40 | % |   |   | 582,708 |   |   |   | 42 | % |
| Consumer:                      |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Home equity lines              |   |   | 209,801   |   |   |   | 11     | %      |   |   | 170,662   |   |   |   | 9      | % |   |   | 144,429 |   |   |   | 9 | % |   |   | 145,676 |   |   |   | 10 | % |   |   | 161,100 |   |   |   | 11 | % |
| Home equity loans              |   |   | 62,430    |   |   |   | 3      | %      |   |   | 89,297    |   |   |   | 5      | % |   |   | 99,827 |   |   |   | 6 | % |   |   | 93,947 |   |   |   | 6 | % |   |   | 72,288 |   |   |   | 5 | % |
| Other  (2)           |   |   | 57,312    |   |   |   | 3      | %      |   |   | 56,830    |   |   |   | 3      | % |   |   | 49,459 |   |   |   | 4 | % |   |   | 44,295 |   |   |   | 4 | % |   |   | 31,078 |   |   |   | 2 | % |
| Total consumer loans           |   |   | 329,543   |   |   |   | 17     | %      |   |   | 316,789   |   |   |   | 17     | % |   |   | 293,715 |   |   |   | 19 | % |   |   | 283,918 |   |   |   | 20 | % |   |   | 264,466 |   |   |   | 18 | % |
| Total loans                    |   | $      | 1,919,668 |   |   |   | 100    | %      |   | $      | 1,839,154 |   |   |   | 100    | % |   | $ | 1,573,652 |   |   |   | 100 | % |   | $ | 1,459,986 |   |   |   | 100 | % |   | $ | 1,401,908 |   |   |   | 100 | % |

| (1)   | Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (2)   | Other consumer loans include personal installment loans and loans to individuals secured by general aviation aircraft and automobiles. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars in thousands)           |   |    |    |   |   |   |    |    |   |   |    |   |
|----------------------------------|--------|---------|---------|--------|--------|--------|---------|---------|--------|--------|---------|--------|
|                             |   | 1 Year  |    |   | 1 to 5 |   |    | After 5 |   |   |    |   |
| Matures in:                      |   | or Less |    |   | Years  |   |    | Years   |   |   | Totals  |   |
| Construction and development (1) |   | $       | 17,973  |   |   | $      | 17,943  |    |   | $      | 47,971  |   |   | $ | 83,887 |   |
| Commercial - other               |   |    | 155,307 |   |   |   | 162,000 |    |   |   | 97,954  |   |   |   | 415,261 |   |
|                             |   | $       | 173,280 |   |   | $      | 179,943 |    |   | $      | 145,925 |   |   | $ | 499,148 |   |

| (1)   | Includes homeowner construction and commercial construction and development.  Maturities of homeowner construction loans are included based on their contractual conventional mortgage repayment terms following the completion of construction. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars in thousands)       |   |          |    |   | Floating or |   |   |   |   |
|------------------------------|--------|---------------|---------|--------|-------------|--------|--------|--------|--------|
|                         |   | Predetermined |    |   | Adjustable  |   |   |   |   |
|                         |   | Rates         |    |   | Rates       |   |   | Totals |   |
| Principal due after one year |   | $             | 226,483 |   |        | $      | 99,385 |   |   | $ | 325,868 |   |

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| (Dollars in thousands)                   |   | December 31, 2009 |    |   | December 31, 2008 |   |
|------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                     |   | Amount                 |    |   | % of Total             |   |   | Amount |   |   | % of Total |   |
| Rhode Island, Connecticut, Massachusetts |   | $                      | 512,748 |   |                   |   | 90 | % |   | $ | 405,040 |   |   |   | 89 | % |
| New York, New Jersey, Pennsylvania       |   |                   | 40,485  |   |                   |   | 7 | % |   |   | 37,448 |   |   |   | 8 | % |
| New Hampshire, Maine                     |   |                   | 14,342  |   |                   |   | 3 | % |   |   | 13,384 |   |   |   | 3 | % |
| Other                                    |   |                   | 1,714   |   |                   |   | – | % |   |   | 1,631 |   |   |   | – | % |
| Total                                    |   | $                      | 569,289 |   |                   |   | 100 | % |   | $ | 457,503 |   |   |   | 100 | % |

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| (Dollars in thousands)                    |   | December 31, 2009 |    |   | December 31, 2008 |   |
|-------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                      |   | Amount                 |    |   | % of Total             |   |   | Amount |   |   | % of Total |   |
| Rhode Island, Connecticut, Massachusetts  |   | $                      | 555,455 |   |                   |   | 92 | % |   | $ | 566,857 |   |   |   | 88 | % |
| New York, Virginia, New Jersey, Maryland, |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Pennsylvania, District of Columbia        |   |                   | 18,908  |   |                   |   | 3 | % |   |   | 28,252 |   |   |   | 5 | % |
| Ohio                                      |   |                   | 13,700  |   |                   |   | 2 | % |   |   | 19,940 |   |   |   | 3 | % |
| California, Washington, Oregon            |   |                   | 8,140   |   |                   |   | 1 | % |   |   | 12,678 |   |   |   | 2 | % |
| Colorado, Texas, New Mexico, Utah         |   |                   | 5,038   |   |                   |   | 1 | % |   |   | 8,623 |   |   |   | 1 | % |
| Georgia                                   |   |                   | 2,519   |   |                   |   | 1 | % |   |   | 2,539 |   |   |   | 1 | % |
| New Hampshire                             |   |                   | 1,333   |   |                   |   | – | % |   |   | 1,399 |   |   |   | – | % |
| Other                                     |   |                   | 482     |   |                   |   | – | % |   |   | 1,764 |   |   |   | – | % |
| Total                                     |   | $                      | 605,575 |   |                   |   | 100 | % |   | $ | 642,052 |   |   |   | 100 | % |

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| (Dollars in thousands)                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| December 31,                       |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
| Nonaccrual loans:                       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Commercial mortgages                    |   | $      | 11,588  |   |   | $      | 1,942   |   |   | $      | 1,094   |   |   | $      | 981     |   |   | $ | 394 |   |
| Commercial construction and development |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Other commercial                        |   |   | 9,075   |   |   |   | 3,845   |   |   |   | 1,781   |   |   |   | 831     |   |   |   | 624 |   |
| Residential real estate mortgages       |   |   | 6,038   |   |   |   | 1,754   |   |   |   | 1,158   |   |   |   | 721     |   |   |   | 1,147 |   |
| Consumer                                |   |   | 769     |   |   |   | 236     |   |   |   | 271     |   |   |   | 190     |   |   |   | 249 |   |
| Total nonaccrual loans                  |   |   | 27,470  |   |   |   | 7,777   |   |   |   | 4,304   |   |   |   | 2,723   |   |   |   | 2,414 |   |
| Nonaccrual investment securities        |   |   | 1,065   |   |   |   | 633     |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Property acquired through foreclosure   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| or repossession, net                    |   |   | 1,974   |   |   |   | 392     |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Total nonperforming assets              |   | $      | 30,509  |   |   | $      | 8,802   |   |   | $      | 4,304   |   |   | $      | 2,723   |   |   | $ | 2,414 |   |
|                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Nonperforming assets to total assets    |   |   | 1.06    | %      |   |   | 0.30    | %      |   |   | 0.17    | %      |   |   | 0.11    | % |   |   | 0.10 | % |
| Nonperforming loans to total loans      |   |   | 1.43    | %      |   |   | 0.42    | %      |   |   | 0.27    | %      |   |   | 0.19    | % |   |   | 0.17 | % |
| Total past due loans to total loans     |   |   | 1.64    | %      |   |   | 0.96    | %      |   |   | 0.45    | %      |   |   | 0.49    | % |   |   | 0.27 | % |
| Accruing loans 90 days or more past due |   | $      | – |   |   | $      | – |   |   | $      | – |   |   | $      | – |   |   | $ | – |   |

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| (Dollars in thousands)  |   | December 31, 2009 |    |   |     | December 31, 2008 |    |
|-------------------------|--------|-------------------|---------|--------|----------|-------------------|---------|
|                    |   | Days Past Due     |    |   |     |              |    |   | Days Past Due |   |   |   |   |
|                    |   | Over 90           |    |   | Under 90 |              |    | Total |   |   |   | Over 90 |   |   | Under 90 |   |   | Total |   |
| Commercial mortgages    |   | $                 | 11,227  |   |     | $                 | 361     |   |   | $ | 11,588 |   |   |   | $ | 1,826 |   |   | $ | 116 |   |   | $ | 1,942 |   |
|                    |   |              |    |   |     |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial construction |   |              |    |   |     |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and development         |   |              | – |   |     |              | – |   |   |   | – |   |   |   |   | – |   |   |   | – |   |   |   | – |   |
|                    |   |              |    |   |     |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other commercial        |   |              | 4,829   |   |     |              | 4,246   |   |   |   | 9,075 |   |   |   |   | 3,408 |   |   |   | 437 |   |   |   | 3,845 |   |
|                    |   |              |    |   |     |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate |   |              |    |   |     |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| mortgages               |   |              | 4,028   |   |     |              | 2,010   |   |   |   | 6,038 |   |   |   |   | 973 |   |   |   | 781 |   |   |   | 1,754 |   |
|                    |   |              |    |   |     |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                |   |              | 164     |   |     |              | 605     |   |   |   | 769 |   |   |   |   | 77 |   |   |   | 159 |   |   |   | 236 |   |
| Total nonaccrual loans  |   | $                 | 20,248  |   |     | $                 | 7,222   |   |   | $ | 27,470 |   |   |   | $ | 6,284 |   |   | $ | 1,493 |   |   | $ | 7,777 |   |

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| (Dollars in thousands)             |   |   |   |   |   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|
| December 31,                  |   | 2009   |   |   | 2008   |   |
|                               |   | Amount |   |   |   | %      | (1) |   | Amount |   |   |   | % | (1) |
| Loans 30 – 59 days past due: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate             |   | $      | 1,909  |   |   |   |   |   |   | $ | 3,466 |   |   |   |   |   |
| Other commercial loans             |   |   | 1,831  |   |   |   |   |   |   |   | 2,024 |   |   |   |   |   |
| Residential real estate mortgages  |   |   | 2,409  |   |   |   |   |   |   |   | 3,113 |   |   |   |   |   |
| Consumer loans                     |   |   | 1,258  |   |   |   |   |   |   |   | 76 |   |   |   |   |   |
| Loans 30 – 59 days past due  |   | $      | 7,407  |   |   |   |   |   |   | $ | 8,679 |   |   |   |   |   |
| Loans 60 – 89 days past due: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate             |   | $      | 1,648  |   |   |   |   |   |   | $ | 6 |   |   |   |   |   |
| Other commercial loans             |   |   | 292    |   |   |   |   |   |   |   | 785 |   |   |   |   |   |
| Residential real estate mortgages  |   |   | 1,383  |   |   |   |   |   |   |   | 1,452 |   |   |   |   |   |
| Consumer loans                     |   |   | 591    |   |   |   |   |   |   |   | 401 |   |   |   |   |   |
| Loans 60 – 89 days past due  |   | $      | 3,914  |   |   |   |   |   |   | $ | 2,644 |   |   |   |   |   |
| Loans 90 days or more past due:    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate             |   | $      | 11,227 |   |   |   |   |   |   | $ | 1,826 |   |   |   |   |   |
| Other commercial loans             |   |   | 4,829  |   |   |   |   |   |   |   | 3,408 |   |   |   |   |   |
| Residential real estate mortgages  |   |   | 4,028  |   |   |   |   |   |   |   | 973 |   |   |   |   |   |
| Consumer loans                     |   |   | 164    |   |   |   |   |   |   |   | 77 |   |   |   |   |   |
| Loans 90 days or more past due     |   | $      | 20,248 |   |   |   |   |   |   | $ | 6,284 |   |   |   |   |   |
| Total past due loans:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial real estate             |   | $      | 14,784 |   |   |   | 2.60 | % |   | $ | 5,298 |   |   |   | 1.16 | % |
| Other commercial loans             |   |   | 6,952  |   |   |   | 1.67 | % |   |   | 6,217 |   |   |   | 1.47 | % |
| Residential real estate mortgages  |   |   | 7,820  |   |   |   | 1.29 | % |   |   | 5,538 |   |   |   | 0.86 | % |
| Consumer loans                     |   |   | 2,013  |   |   |   | 0.61 | % |   |   | 554 |   |   |   | 0.17 | % |
| Total past due loans               |   | $      | 31,569 |   |   |   | 1.64 | % |   | $ | 17,607 |   |   |   | 0.96 | % |

| (1)   | Percentage of past due loans to the total loans outstanding within the respective category. |
|-----------------|---------------------------------------------------------------------------------------------|

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| (Dollars in thousands)                       |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                         |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |
| December 31,                            |   | 2009   |   |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
| Accruing troubled debt restructured loans:   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |
| Commercial mortgages                         |   | $      | 5,566  |   |   | $      | – |   |   | $      | 1,717   |   |   | $      | – |   |   | $ | – |   |
| Other commercial                             |   |   | 540    |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Residential real estate mortgages            |   |   | 2,736  |   |   |   | 263     |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Consumer                                     |   |   | 858    |   |   |   | 607     |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Accruing troubled debt restructured loans    |   |   | 9,700  |   |   |   | 870     |   |   |   | 1,717   |   |   |   | – |   |   |   | – |   |
| Nonaccrual troubled debt restructured loans: |   |   |   |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Other commercial                             |   |   | 228    |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Residential real estate mortgages            |   |   | 336    |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Consumer                                     |   |   | 45     |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Nonaccrual troubled debt restructured loans  |   |   | 609    |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Total troubled debt restructured loans       |   | $      | 10,309 |   |   | $      | 870     |   |   | $      | 1,717   |   |   | $      | – |   |   | $ | – |   |

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| (Dollars in thousands)                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|-----------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| December 31,                                  |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
| Balance at beginning of year                  |   | $      | 23,725  |   |   | $      | 20,277  |   |   | $      | 18,894  |   |   | $      | 17,918  |   |   | $ | 16,771 |   |
| Charge-offs:                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial:                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Mortgages                                     |   |   | 1,615   |   |   |   | 185     |   |   |   | 26      |   |   |   | – |   |   |   | 85 |   |
| Construction and development                  |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Other                                         |   |   | 2,907   |   |   |   | 1,044   |   |   |   | 506     |   |   |   | 295     |   |   |   | 198 |   |
| Residential:                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Mortgages                                     |   |   | 417     |   |   |   | 104     |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Homeowner construction                        |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Consumer                                      |   |   | 223     |   |   |   | 260     |   |   |   | 246     |   |   |   | 133     |   |   |   | 86 |   |
| Total charge-offs                             |   |   | 5,162   |   |   |   | 1,593   |   |   |   | 778     |   |   |   | 428     |   |   |   | 369 |   |
| Recoveries:                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Commercial:                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Mortgages                                     |   |   | 37      |   |   |   | 68      |   |   |   | – |   |   |   | – |   |   |   | 71 |   |
| Construction and development                  |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Other                                         |   |   | 251     |   |   |   | 48      |   |   |   | 203     |   |   |   | 171     |   |   |   | 389 |   |
| Residential:                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Mortgages                                     |   |   | 28      |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Homeowner construction                        |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Consumer                                      |   |   | 21      |   |   |   | 125     |   |   |   | 58      |   |   |   | 33      |   |   |   | 106 |   |
| Total recoveries                              |   |   | 337     |   |   |   | 241     |   |   |   | 261     |   |   |   | 204     |   |   |   | 566 |   |
| Net charge-offs (recoveries)                  |   |   | 4,825   |   |   |   | 1,352   |   |   |   | 517     |   |   |   | 224     |   |   |   | (197 | ) |
| Reclassification of allowance                 |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| on off-balance sheet exposures                |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | (250 | ) |
| Provision charged to earnings                 |   |   | 8,500   |   |   |   | 4,800   |   |   |   | 1,900   |   |   |   | 1,200   |   |   |   | 1,200 |   |
| Balance at end of year                        |   | $      | 27,400  |   |   | $      | 23,725  |   |   | $      | 20,277  |   |   | $      | 18,894  |   |   | $ | 17,918 |   |
|                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net charge-offs (recoveries) to average loans |   |   | 0.25    | %      |   |   | 0.08    | %      |   |   | 0.03    | %      |   |   | 0.02    | % |   |   | (0.01 | )% |

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| (Dollars in thousands)        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31,                  |   | 2009   |   |   | 2008   |   |   | 2007   |   |   | 2006   |   |   | 2005   |   |
| Commercial:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgages                     |   | $      | 7,360  |   |   | $      | 4,904  |   |   | $      | 5,218  |   |   | $      | 4,408  |   |   | $ | 4,467 |   |
| % of these loans to all loans |   |   | 25.9   | %      |   |   | 22.2   | %      |   |   | 17.7   | %      |   |   | 19.3   | % |   |   | 20.8 | % |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction and development  |   |   | 874    |   |   |   | 784    |   |   |   | 1,445  |   |   |   | 589    |   |   |   | 713 |   |
| % of these loans to all loans |   |   | 3.8    | %      |   |   | 2.7    | %      |   |   | 3.8    | %      |   |   | 2.2    | % |   |   | 2.7 | % |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                         |   |   | 6,423  |   |   |   | 6,889  |   |   |   | 4,229  |   |   |   | 4,200  |   |   |   | 3,263 |   |
| % of these loans to all loans |   |   | 21.6   | %      |   |   | 23.0   | %      |   |   | 21.7   | %      |   |   | 18.7   | % |   |   | 16.1 | % |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential:                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgages                     |   |   | 3,638  |   |   |   | 2,111  |   |   |   | 1,681  |   |   |   | 1,619  |   |   |   | 1,642 |   |
| % of these loans to all loans |   |   | 30.9   | %      |   |   | 34.1   | %      |   |   | 37.4   | %      |   |   | 39.6   | % |   |   | 40.3 | % |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Homeowner construction        |   |   | 43     |   |   |   | 84     |   |   |   | 55     |   |   |   | 56     |   |   |   | 43 |   |
| % of these loans to all loans |   |   | 0.6    | %      |   |   | 0.8    | %      |   |   | 0.7    | %      |   |   | 0.8    | % |   |   | 1.2 | % |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                      |   |   | 1,346  |   |   |   | 2,231  |   |   |   | 2,027  |   |   |   | 1,882  |   |   |   | 1,585 |   |
| % of these loans to all loans |   |   | 17.2   | %      |   |   | 17.2   | %      |   |   | 18.7   | %      |   |   | 19.4   | % |   |   | 18.9 | % |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unallocated                   |   |   | 7,716  |   |   |   | 6,722  |   |   |   | 5,622  |   |   |   | 6,140  |   |   |   | 6,205 |   |
| Balance at end of year        |   | $      | 27,400 |   |   | $      | 23,725 |   |   | $      | 20,277 |   |   | $      | 18,894 |   |   | $ | 17,918 |   |
|                          |   |   | 100.0  | %      |   |   | 100.0  | %      |   |   | 100.0  | %      |   |   | 100.0  | % |   |   | 100.0 | % |

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| (Dollars in thousands)             |   | Payments Due by Period |    |
|------------------------------------|--------|------------------------|---------|
|                               |   | Total                  |    |   | Less Than1 Year (1) |   |   | 1-3 Years |   |   | 4-5 Years |   |   | After5 Years |   |
| Contractual Obligations:           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLBB advances (2)                 |   | $                      | 607,328 |   |   | $ | 121,104 |   |   | $ | 237,405 |   |   | $ | 162,096 |   |   | $ | 86,723 |   |
| Junior subordinated debentures     |   |                   | 32,991  |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 32,991 |   |
| Operating lease obligations        |   |                   | 6,444   |   |   |   | 1,384 |   |   |   | 1,979 |   |   |   | 1,200 |   |   |   | 1,881 |   |
| Software licensing arrangements    |   |                   | 1,358   |   |   |   | 1,217 |   |   |   | 141 |   |   |   | – |   |   |   | – |   |
| Treasury, tax and loan demand note |   |                   | 1,676   |   |   |   | 1,676 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Other borrowings                   |   |                   | 19,825  |   |   |   | 33 |   |   |   | 19,573 |   |   |   | 86 |   |   |   | 133 |   |
| Total contractual obligations      |   | $                      | 669,622 |   |   | $ | 125,414 |   |   | $ | 259,098 |   |   | $ | 163,382 |   |   | $ | 121,728 |   |

| (1)   | Maturities or contractual obligations are considered by management in the administration of liquidity and are routinely refinanced in the ordinary course of business. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | All FHLBB advances are shown in the period corresponding to their scheduled maturity.  Some FHLBB advances are callable at earlier dates.  See Note 11 to the Consolidated Financial Statements for additional information. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars in thousands)                  |   | Amount of Commitment Expiration – Per Period |    |
|-----------------------------------------|--------|----------------------------------------------------|---------|
|                                    |   | Total                                              |    |   | Less Than1 Year |   |   | 1-3 Years |   |   | 4-5 Years |   |   | After5 Years |   |
| Other Commitments:                      |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans                        |   | $                                                  | 186,943 |   |   | $ | 125,480 |   |   | $ | 34,475 |   |   | $ | 3,038 |   |   | $ | 23,950 |   |
| Home equity lines                       |   |                                               | 185,892 |   |   |   | 508 |   |   |   | 101 |   |   |   | – |   |   |   | 185,283 |   |
| Other loans                             |   |                                               | 25,691  |   |   |   | 22,343 |   |   |   | 50 |   |   |   | 3,298 |   |   |   | – |   |
| Standby letters of credit               |   |                                               | 8,712   |   |   |   | 1,973 |   |   |   | 6,739 |   |   |   | – |   |   |   | – |   |
| Forward loan commitments to:            |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Originate loans                         |   |                                               | 15,898  |   |   |   | 15,898 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Sell loans                              |   |                                               | 25,791  |   |   |   | 25,791 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Customer related derivative contracts:  |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps with customers      |   |                                               | 53,725  |   |   |   | – |   |   |   | – |   |   |   | 43,820 |   |   |   | 9,905 |   |
| Mirror swaps with counterparties        |   |                                               | 53,725  |   |   |   | – |   |   |   | – |   |   |   | 43,820 |   |   |   | 9,905 |   |
| Interest rate risk management contract: |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap                      |   |                                               | 10,000  |   |   |   | – |   |   |   | – |   |   |   | 10,000 |   |   |   | – |   |
| Equity commitment to affordable         |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| housing limited partnership (1)         |   |                                               | 690     |   |   |   | 690 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total commitments                       |   | $                                                  | 567,067 |   |   | $ | 192,683 |   |   | $ | 41,365 |   |   | $ | 103,976 |   |   | $ | 229,043 |   |

| (1)   | The funding of this commitment is generally contingent upon substantial completion of the project. |
|-----------------|----------------------------------------------------------------------------------------------------|

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| December 31,                  |   | 2009          |   |   | 2008           |   |
|-------------------------------|--------|---------------|--------|--------|----------------|--------|
|                          |   | Months 1 - 12 |   |   | Months 13 - 24 |   |   | Months 1 - 12 |   |   | Months 13 - 24 |   |
| 100 basis point rate decrease |   |          | -2.09  | %      |           |   | -7.08 | % |   |   | -1.13 | % |   |   | 0.30 | % |
| 100 basis point rate increase |   |          | 1.85   | %      |           |   | 2.89 | % |   |   | 0.61 | % |   |   | -1.09 | % |
| 200 basis point rate increase |   |          | 4.11   | %      |           |   | 6.45 | % |   |   | 1.98 | % |   |   | -1.09 | % |
|                          |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |

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| (Dollars in thousands)                                                          |   | Down 100 |   |   | Up 200 |   |
|---------------------------------------------------------------------------------|--------|----------|--------|--------|--------|--------|
|                                                                            |   | Basis    |   |   | Basis  |   |
| Security Type                                                                   |   | Points   |   |   | Points |   |
| U.S. Treasury and U.S. government-sponsored enterprise securities (noncallable) |   | $        | 1,401  |   |   | $      | (2,619 | ) |
| U.S. government-sponsored enterprise securities (callable)                      |   |     | 1      |   |   |   | (2 | ) |
| States and political subdivisions                                               |   |     | 3,894  |   |   |   | (10,196 | ) |
| Mortgage-backed securities issued by U.S. government-sponsored agencies         |   |     |   |   |   |   |   |   |
| and U.S. government-sponsored enterprises                                       |   |     | 6,521  |   |   |   | (21,992 | ) |
| Trust preferred debt and other corporate securities                             |   |     | 434    |   |   |   | 1,007 |   |
| Total change in market value as of December 31, 2009                            |   | $        | 12,251 |   |   | $      | (33,802 | ) |
|                                                                            |   |     |   |   |   |   |   |   |
| Total change in market value as of December 31, 2008                            |   | $        | 14,624 |   |   | $      | (48,014 | ) |

ITEM 7A.  Quantitative and Qualitative Disclosures About Market Risk.

ITEM 8.  Financial Statements and Supplementary Data.

| Description                                                                                                           | Page |
|-----------------------------------------------------------------------------------------------------------------------|------|
| Management’s Annual Report on Internal Control Over Financial Reporting                                         | 61   |
| Reports of Independent Registered Public Accounting Firm                                                              | 62   |
| Consolidated Balance Sheets at December 31, 2009 and 2008                                                             | 64   |
| Consolidated Statements of Income For the Years Ended December 31, 2009, 2008 and 2007                                | 65   |
| Consolidated Statements of Changes in Shareholders’ Equity For the Years Ended December 31, 2009, 2008 and 2007 | 66   |
| Consolidated Statements of Cash Flows For the Years Ended December 31, 2009, 2008 and 2007                            | 68   |
| Notes to Consolidated Financial Statements                                                                            | 70   |

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| /s/ John C. Warren | /s/ David V. Devault  |
|--------------------|----------------------------|

| John C. WarrenChairman andChief Executive Officer | David V. DevaultExecutive Vice President, Chief Financial Officerand Secretary |
|---------------------------------------------------|--------------------------------------------------------------------------------|

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands, |
|-------------------------------------------------|------------------------|
| CONSOLIDATED BALANCE SHEETS                     | except par value)      |

| December 31,                                                             |   | 2009   |      |   | 2008   |   |
|--------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Assets:                                                                  |   |   |      |   |   |   |
| Cash and noninterest-bearing balances due from banks                     |   | $      | 38,167    |   |   | $      | 11,644 |   |
| Interest-bearing balances due from banks                                 |   |   | 13,686    |   |   |   | 41,780 |   |
| Federal funds sold and securities purchased under resale agreements      |   |   | –   |   |   |   | 2,942 |   |
| Other short-term investments                                             |   |   | 5,407     |   |   |   | 1,824 |   |
| Mortgage loans held for sale                                             |   |   | 9,909     |   |   |   | 2,543 |   |
| Securities available for sale, at fair value;                            |   |   |      |   |   |   |   |   |
| amortized cost $677,676 in 2009 and $869,433 in 2008                     |   |   | 691,484   |   |   |   | 866,219 |   |
| Federal Home Loan Bank stock, at cost                                    |   |   | 42,008    |   |   |   | 42,008 |   |
| Loans:                                                                   |   |   |      |   |   |   |   |   |
| Commercial and other                                                     |   |   | 984,550   |   |   |   | 880,313 |   |
| Residential real estate                                                  |   |   | 605,575   |   |   |   | 642,052 |   |
| Consumer                                                                 |   |   | 329,543   |   |   |   | 316,789 |   |
| Total loans                                                              |   |   | 1,919,668 |   |   |   | 1,839,154 |   |
| Less allowance for loan losses                                           |   |   | 27,400    |   |   |   | 23,725 |   |
| Net loans                                                                |   |   | 1,892,268 |   |   |   | 1,815,429 |   |
| Premises and equipment, net                                              |   |   | 27,524    |   |   |   | 25,102 |   |
| Accrued interest receivable                                              |   |   | 9,137     |   |   |   | 11,036 |   |
| Investment in bank-owned life insurance                                  |   |   | 44,957    |   |   |   | 43,163 |   |
| Goodwill                                                                 |   |   | 58,114    |   |   |   | 58,114 |   |
| Identifiable intangible assets, net                                      |   |   | 8,943     |   |   |   | 10,152 |   |
| Property acquired through foreclosure or repossession, net               |   |   | 1,974     |   |   |   | 392 |   |
| Other assets                                                             |   |   | 40,895    |   |   |   | 33,118 |   |
| Total assets                                                             |   | $      | 2,884,473 |   |   | $      | 2,965,466 |   |
| Liabilities:                                                             |   |   |      |   |   |   |   |   |
| Deposits:                                                                |   |   |      |   |   |   |   |   |
| Demand deposits                                                          |   | $      | 194,046   |   |   | $      | 172,771 |   |
| NOW accounts                                                             |   |   | 202,367   |   |   |   | 171,306 |   |
| Money market accounts                                                    |   |   | 403,333   |   |   |   | 305,879 |   |
| Savings accounts                                                         |   |   | 191,580   |   |   |   | 173,485 |   |
| Time deposits                                                            |   |   | 931,684   |   |   |   | 967,427 |   |
| Total deposits                                                           |   |   | 1,923,010 |   |   |   | 1,790,868 |   |
| Dividends payable                                                        |   |   | 3,369     |   |   |   | 3,351 |   |
| Federal Home Loan Bank advances                                          |   |   | 607,328   |   |   |   | 829,626 |   |
| Junior subordinated debentures                                           |   |   | 32,991    |   |   |   | 32,991 |   |
| Other borrowings                                                         |   |   | 21,501    |   |   |   | 26,743 |   |
| Accrued expenses and other liabilities                                   |   |   | 41,328    |   |   |   | 46,776 |   |
| Total liabilities                                                        |   |   | 2,629,527 |   |   |   | 2,730,355 |   |
| Shareholders’ Equity:                                              |   |   |      |   |   |   |   |   |
| Common stock of $.0625 par value; authorized 30,000,000 shares;          |   |   |      |   |   |   |   |   |
| issued 16,061,748 shares in 2009 and 16,018,868 shares in 2008           |   |   | 1,004     |   |   |   | 1,001 |   |
| Paid-in capital                                                          |   |   | 82,592    |   |   |   | 82,095 |   |
| Retained earnings                                                        |   |   | 168,514   |   |   |   | 164,679 |   |
| Accumulated other comprehensive income (loss)                            |   |   | 3,337     |   |   |   | (10,458 | ) |
| Treasury stock, at cost; 19,185 shares in 2009 and 84,191 shares in 2008 |   |   | (501      | )      |   |   | (2,206 | ) |
| Total shareholders’ equity                                         |   |   | 254,946   |   |   |   | 235,111 |   |
| Total liabilities and shareholders’ equity                         |   | $      | 2,884,473 |   |   | $      | 2,965,466 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars and shares in thousands, |
|-------------------------------------------------|-----------------------------------|
| CONSOLIDATED STATEMENTS OF INCOME               | except per share amounts)         |

| Years ended December 31,                                               |                              | 2009   |     |   | 2008   |   |     | 2007   |   |
|------------------------------------------------------------------------|-----------------------------------|--------|----------|--------|--------|--------|----------|--------|--------|
| Interest income:                                                       |                              |   |     |   |   |   |     |   |   |
| Interest and fees on loans                                             |                              | $      | 96,796   |   |   | $      | 100,939  |   |   | $ | 98,720 |   |
| Interest on securities:                                                | Taxable                           |   |     | 29,423 |   |   |     | 34,382 |   |   |   | 31,163 |   |
|                                                                   | Nontaxable                        |   |     | 3,116  |   |   |     | 3,125  |   |   |   | 2,983 |   |
| Dividends on corporate stock and Federal Home Loan Bank stock          |                              |   | 245      |   |   |   | 1,882    |   |   |   | 2,737 |   |
| Other interest income                                                  |                              |   | 50       |   |   |   | 334      |   |   |   | 831 |   |
| Total interest income                                                  |                              |   | 129,630  |   |   |   | 140,662  |   |   |   | 136,434 |   |
| Interest expense:                                                      |                              |   |     |   |   |   |     |   |   |   |   |   |
| Deposits                                                               |                              |   | 32,638   |   |   |   | 41,195   |   |   |   | 52,422 |   |
| Federal Home Loan Bank advances                                        |                              |   | 28,172   |   |   |   | 30,894   |   |   |   | 21,641 |   |
| Junior subordinated debentures                                         |                              |   | 1,947    |   |   |   | 1,879    |   |   |   | 1,352 |   |
| Other interest expense                                                 |                              |   | 981      |   |   |   | 1,181    |   |   |   | 1,075 |   |
| Total interest expense                                                 |                              |   | 63,738   |   |   |   | 75,149   |   |   |   | 76,490 |   |
| Net interest income                                                    |                              |   | 65,892   |   |   |   | 65,513   |   |   |   | 59,944 |   |
| Provision for loan losses                                              |                              |   | 8,500    |   |   |   | 4,800    |   |   |   | 1,900 |   |
| Net interest income after provision for loan losses                    |                              |   | 57,392   |   |   |   | 60,713   |   |   |   | 58,044 |   |
| Noninterest income:                                                    |                              |   |     |   |   |   |     |   |   |   |   |   |
| Wealth management services:                                            |                              |   |     |   |   |   |     |   |   |   |   |   |
| Trust and investment advisory fees                                     |                              |   | 18,128   |   |   |   | 20,316   |   |   |   | 21,124 |   |
| Mutual fund fees                                                       |                              |   | 4,140    |   |   |   | 5,205    |   |   |   | 5,430 |   |
| Financial planning, commissions and other service fees                 |                              |   | 1,518    |   |   |   | 2,752    |   |   |   | 2,462 |   |
| Wealth management services                                             |                              |   | 23,786   |   |   |   | 28,273   |   |   |   | 29,016 |   |
| Service charges on deposit accounts                                    |                              |   | 4,860    |   |   |   | 4,781    |   |   |   | 4,713 |   |
| Merchant processing fees                                               |                              |   | 7,844    |   |   |   | 6,900    |   |   |   | 6,710 |   |
| Income from bank-owned life insurance                                  |                              |   | 1,794    |   |   |   | 1,800    |   |   |   | 1,593 |   |
| Net gains on loan sales and commissions on loans originated for others |                              |   | 4,352    |   |   |   | 1,396    |   |   |   | 1,493 |   |
| Net realized gains on securities                                       |                              |   | 314      |   |   |   | 2,224    |   |   |   | 455 |   |
| Net gains (losses) on interest rate swap contracts                     |                              |   | 697      |   |   |   | (542     | )      |   |   | 27 |   |
| Other income                                                           |                              |   | 1,708    |   |   |   | 1,625    |   |   |   | 1,502 |   |
| Noninterest income, excluding other-than-temporary impairment losses   |                              |   | 45,355   |   |   |   | 46,457   |   |   |   | 45,509 |   |
| Total other-than-temporary impairment losses on securities             |                              |   | (6,650   | )      |   |   | (5,937   | )      |   |   | – |   |
| Portion of loss recognized in other comprehensive income (before tax)  |                              |   | 3,513    |   |   |   | –  |   |   |   | – |   |
| Net impairment losses recognized in earnings                           |                              |   | (3,137   | )      |   |   | (5,937   | )      |   |   | – |   |
| Total noninterest income                                               |                              |   | 42,218   |   |   |   | 40,520   |   |   |   | 45,509 |   |
| Noninterest expense:                                                   |                              |   |     |   |   |   |     |   |   |   |   |   |
| Salaries and employee benefits                                         |                              |   | 41,917   |   |   |   | 41,037   |   |   |   | 39,986 |   |
| Net occupancy                                                          |                              |   | 4,790    |   |   |   | 4,536    |   |   |   | 4,150 |   |
| Equipment                                                              |                              |   | 3,917    |   |   |   | 3,838    |   |   |   | 3,473 |   |
| Merchant processing costs                                              |                              |   | 6,652    |   |   |   | 5,769    |   |   |   | 5,686 |   |
| FDIC deposit insurance costs                                           |                              |   | 4,397    |   |   |   | 1,044    |   |   |   | 213 |   |
| Outsourced services                                                    |                              |   | 2,734    |   |   |   | 2,859    |   |   |   | 2,180 |   |
| Legal, audit and professional fees                                     |                              |   | 2,443    |   |   |   | 2,325    |   |   |   | 1,761 |   |
| Advertising and promotion                                              |                              |   | 1,687    |   |   |   | 1,729    |   |   |   | 2,024 |   |
| Amortization of intangibles                                            |                              |   | 1,209    |   |   |   | 1,281    |   |   |   | 1,383 |   |
| Debt prepayment penalties                                              |                              |   | –  |   |   |   | –  |   |   |   | 1,067 |   |
| Other expenses                                                         |                              |   | 7,422    |   |   |   | 7,324    |   |   |   | 6,983 |   |
| Total noninterest expense                                              |                              |   | 77,168   |   |   |   | 71,742   |   |   |   | 68,906 |   |
| Income before income taxes                                             |                              |   | 22,442   |   |   |   | 29,491   |   |   |   | 34,647 |   |
| Income tax expense                                                     |                              |   | 6,346    |   |   |   | 7,319    |   |   |   | 10,847 |   |
| Net income                                                             |                              | $      | 16,096   |   |   | $      | 22,172   |   |   | $ | 23,800 |   |
| Weighted average shares outstanding - basic                            |                              |   | 15,994.9 |   |   |   | 13,981.9 |   |   |   | 13,355.5 |   |
| Weighted average shares outstanding - diluted                          |                              |   | 16,040.9 |   |   |   | 14,146.3 |   |   |   | 13,604.1 |   |
| Per share information:                                                 | Basic earnings per share          |   | $        | 1.01   |   |   | $        | 1.59   |   |   | $ | 1.78 |   |
|                                                                   | Diluted earnings per share        |   | $        | 1.00   |   |   | $        | 1.57   |   |   | $ | 1.75 |   |
|                                                                   | Cash dividends declared per share |   | $        | 0.84   |   |   | $        | 0.83   |   |   | $ | 0.80 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                  | (Dollars and shares in thousands) |
|------------------------------------------------------------------|-----------------------------------|
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY |                              |

|                                             |   |        |   |   |   |   |   |    |   |   |     |   |   | Accumulated   |    |   |     |   |    |   |   |
|--------------------------------------------------|--------|-------------|--------|--------|--------|--------|--------|---------|--------|--------|----------|--------|--------|---------------|---------|--------|----------|--------|---------|--------|--------|
|                                             |   | Common      |   |   |   |   |   |    |   |   |     |   |   | Other         |    |   |     |   |    |   |   |
|                                             |   | Shares      |   |   | Common |   |   | Paid-in |   |   | Retained |   |   | Comprehensive |    |   | Treasury |   |    |   |   |
| (Dollars and shares in thousands)                |   | Outstanding |   |   | Stock  |   |   | Capital |   |   | Earnings |   |   | Income (Loss) |    |   | Stock    |   |    | Total  |   |
| Balance at January 1, 2007                       |   |        | 13,430 |   |   | $      | 843    |    |   | $      | 35,893   |   |   | $             | 141,548 |   |     | $      | (3,515  | )      |   | $ | (1,713 | ) |   | $ | 173,056 |   |
| Net income for 2007                              |   |        |   |   |   |   |   |    |   |   |     |   |   |          | 23,800  |   |     |   |    |   |   |   |   |   |   |   | 23,800 |   |
| Unrealized gains on securities, net              |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| of $427 income tax expense                       |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 793     |   |   |   |   |   |   |   | 793 |   |
| Reclassification adjustments for net             |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| realized gains included in net income,           |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| net of $190 income tax expense                   |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | (265    | )      |   |   |   |   |   |   | (265 | ) |
| Defined benefit plan obligation adjustment,      |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| net of $1,330 income tax expense                 |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 2,469   |   |   |   |   |   |   |   | 2,469 |   |
| Reclassification adjustments for net periodic    |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| pension cost, net of $149 income tax expense     |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 279     |   |   |   |   |   |   |   | 279 |   |
| Comprehensive income                             |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   | 27,076 |   |
| Cash dividends declared                          |   |        |   |   |   |   |   |    |   |   |     |   |   |          | (10,701 | )      |     |   |    |   |   |   |   |   |   |   | (10,701 | ) |
| Share-based compensation                         |   |        |   |   |   |   |   |    |   |   | 508      |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   | 508 |   |
| Deferred compensation plan                       |   |        | (14    | )      |   |   |   |    |   |   | (4       | )      |   |          |    |   |     |   |    |   |   |   | (354 | ) |   |   | (358 | ) |
| Exercise of stock options, issuance of other     |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| other compensation-related equity instruments    |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| and related tax benefit                          |   |        | 123    |   |   |   |   |    |   |   | (1,523   | )      |   |          |    |   |     |   |    |   |   |   | 3,302 |   |   |   | 1,779 |   |
| Shares repurchased                               |   |        | (185   | )      |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   | (4,847 | ) |   |   | (4,847 | ) |
| Balance at December 31, 2007                     |   |        | 13,354 |   |   | $      | 843    |    |   | $      | 34,874   |   |   | $             | 154,647 |   |     | $      | (239    | )      |   | $ | (3,612 | ) |   | $ | 186,513 |   |
| Net income for 2008                              |   |        |   |   |   |   |   |    |   |   |     |   |   |          | 22,172  |   |     |   |    |   |   |   |   |   |   |   | 22,172 |   |
| Unrealized losses on securities, net             |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| of $2,899 income tax benefit                     |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | (5,222  | )      |   |   |   |   |   |   | (5,222 | ) |
| Reclassification adjustments for net             |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| realized losses included in net income,          |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| net of $1,335 income tax benefit                 |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 2,377   |   |   |   |   |   |   |   | 2,377 |   |
| Defined benefit plan obligation adjustment,      |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| net of $4,230 income tax benefit                 |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | (7,615  | )      |   |   |   |   |   |   | (7,615 | ) |
| Reclassification adjustments for net periodic    |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| pension cost, net of $91 income tax expense      |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 169     |   |   |   |   |   |   |   | 169 |   |
| Unrealized gains on cash flow hedges, net        |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| of $2 income tax expense                         |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 4       |   |   |   |   |   |   |   | 4 |   |
| Reclassification adjustments for net realized    |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| gains on cash flow hedges included in net        |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| income, net of $14 income tax expense            |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 26      |   |   |   |   |   |   |   | 26 |   |
| Comprehensive income                             |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   | 10,261 |   |
| Adjustment to initially apply SFAS No. 158,      |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| net of $229 income tax benefit                   |   |        |   |   |   |   |   |    |   |   |     |   |   |          | (468    | )      |     |   | 42      |   |   |   |   |   |   |   | (426 | ) |
| Cash dividends declared                          |   |        |   |   |   |   |   |    |   |   |     |   |   |          | (11,672 | )      |     |   |    |   |   |   |   |   |   |   | (11,672 | ) |
| Share-based compensation                         |   |        |   |   |   |   |   |    |   |   | 630      |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   | 630 |   |
| Deferred compensation plan                       |   |        | 2      |   |   |   |   |    |   |   | (7       | )      |   |          |    |   |     |   |    |   |   |   | 43 |   |   |   | 36 |   |
| Exercise of stock options, issuance of other     |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| other compensation-related equity instruments    |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| and related tax benefit                          |   |        | 41     |   |   |   |   |    |   |   | (687     | )      |   |          |    |   |     |   |    |   |   |   | 1,068 |   |   |   | 381 |   |
| Shares issued                                    |   |        | 2,500  |   |   |   | 156    |    |   |   | 46,718   |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   | 46,874 |   |
| Shares issued – dividend reinvestment plan |   |        | 38     |   |   |   | 2      |    |   |   | 567      |   |   |          |    |   |     |   |    |   |   |   | 295 |   |   |   | 864 |   |
| Balance at December 31, 2008                     |   |        | 15,935 |   |   | $      | 1,001  |    |   | $      | 82,095   |   |   | $             | 164,679 |   |     | $      | (10,458 | )      |   | $ | (2,206 | ) |   | $ | 235,111 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                              | (Dollars and shares in thousands) |
|------------------------------------------------------------------------------|-----------------------------------|
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued) |                              |

|                                             |   |        |   |   |   |   |   |    |   |   |     |   |   | Accumulated   |    |   |     |   |    |   |   |
|--------------------------------------------------|--------|-------------|--------|--------|--------|--------|--------|---------|--------|--------|----------|--------|--------|---------------|---------|--------|----------|--------|---------|--------|--------|
|                                             |   | Common      |   |   |   |   |   |    |   |   |     |   |   | Other         |    |   |     |   |    |   |   |
|                                             |   | Shares      |   |   | Common |   |   | Paid-in |   |   | Retained |   |   | Comprehensive |    |   | Treasury |   |    |   |   |
| (Dollars and shares in thousands)                |   | Outstanding |   |   | Stock  |   |   | Capital |   |   | Earnings |   |   | Income (Loss) |    |   | Stock    |   |    | Total  |   |
| Balance at January 1, 2009                       |   |        | 15,935 |   |   | $      | 1,001  |    |   | $      | 82,095   |   |   | $             | 164,679 |   |     | $      | (10,458 | )      |   | $ | (2,206 | ) |   | $ | 235,111 |   |
| Cumulative effect adjustment of change in        |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| accounting principle, net of $663 income         |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| tax benefit                                      |   |        |   |   |   |   |   |    |   |   |     |   |   |          | 1,196   |   |     |   | (1,196  | )      |   |   |   |   |   |   | – |   |
| Net income for 2009                              |   |        |   |   |   |   |   |    |   |   |     |   |   |          | 16,096  |   |     |   |    |   |   |   |   |   |   |   | 16,096 |   |
| Unrealized gains on securities, net              |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| of $5,724 income tax expense                     |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 10,334  |   |   |   |   |   |   |   | 10,334 |   |
| Noncredit-related losses on securities           |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| not expected to be sold, net of $1,252           |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| income tax benefit                               |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | (2,261  | )      |   |   |   |   |   |   | (2,261 | ) |
| Reclassification adjustments for net             |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| realized losses included in net income,          |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| net of $2,258 income tax benefit                 |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 4,077   |   |   |   |   |   |   |   | 4,077 |   |
| Defined benefit plan obligation adjustment,      |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| net of $1,489 income tax expense                 |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 2,669   |   |   |   |   |   |   |   | 2,669 |   |
| Reclassification adjustments for net periodic    |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| pension cost, net of $116 income tax expense     |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 209     |   |   |   |   |   |   |   | 209 |   |
| Unrealized losses on cash flow hedges, net       |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| of $7 income tax expense                         |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | 13      |   |   |   |   |   |   |   | 13 |   |
| Reclassification adjustments for net realized    |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| gains on cash flow hedges included in net        |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| income, net of $28 income tax benefit            |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   | (50     | )      |   |   |   |   |   |   | (50 | ) |
| Comprehensive income                             |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   | 31,087 |   |
| Cash dividends declared                          |   |        |   |   |   |   |   |    |   |   |     |   |   |          | (13,457 | )      |     |   |    |   |   |   |   |   |   |   | (13,457 | ) |
| Share-based compensation                         |   |        |   |   |   |   |   |    |   |   | 708      |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   | 708 |   |
| Deferred compensation plan                       |   |        | 3      |   |   |   |   |    |   |   | (40      | )      |   |          |    |   |     |   |    |   |   |   | 93 |   |   |   | 53 |   |
| Exercise of stock options, issuance of other     |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| other compensation-related equity instruments    |   |        |   |   |   |   |   |    |   |   |     |   |   |          |    |   |     |   |    |   |   |   |   |   |   |   |   |   |
| and related tax benefit                          |   |        | 44     |   |   |   | 1      |    |   |   | (504     | )      |   |          |    |   |     |   |    |   |   |   | 841 |   |   |   | 338 |   |
| Shares issued – dividend reinvestment plan |   |        | 61     |   |   |   | 2      |    |   |   | 333      |   |   |          |    |   |     |   |    |   |   |   | 771 |   |   |   | 1,106 |   |
| Balance at December 31, 2009                     |   |        | 16,043 |   |   | $      | 1,004  |    |   | $      | 82,592   |   |   | $             | 168,514 |   |     | $      | 3,337   |   |   | $ | (501 | ) |   | $ | 254,946 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
|-------------------------------------------------|------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS           |                   |

| Years ended December 31,                                                          |                                           | 2009   |     |    | 2008   |   |     | 2007     |   |
|-----------------------------------------------------------------------------------|------------------------------------------------|--------|----------|---------|--------|--------|----------|----------|--------|
| Cash flows from operating activities:                                             |                                           |   |     |    |   |   |     |     |   |
| Net income                                                                        |                                           | $      | 16,096   |    |   | $      | 22,172   |     |   | $ | 23,800 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |                                           |   |     |    |   |   |     |     |   |   |   |   |
| Provision for loan losses                                                         |                                           |   | 8,500    |    |   |   | 4,800    |     |   |   | 1,900 |   |
| Depreciation of premises and equipment                                            |                                           |   | 3,113    |    |   |   | 3,043    |     |   |   | 2,951 |   |
| Net amortization of premium and discount                                          |                                           |   | 335      |    |   |   | 691      |     |   |   | 631 |   |
| Net amortization of intangibles                                                   |                                           |   | 1,209    |    |   |   | 1,281    |     |   |   | 1,383 |   |
| Non–cash charitable contribution                                            |                                           |   | –  |    |   |   | 397      |     |   |   | 520 |   |
| Share–based compensation                                                    |                                           |   | 708      |    |   |   | 630      |     |   |   | 508 |   |
| Deferred income tax benefit                                                       |                                           |   | (1,500   | )       |   |   | (5,308   | )        |   |   | (2,311 | ) |
| Earnings from bank-owned life insurance                                           |                                           |   | (1,794   | )       |   |   | (1,800   | )        |   |   | (1,593 | ) |
| Net gains on loan sales and commissions on loans originated for others            |                                           |   | (4,352   | )       |   |   | (1,396   | )        |   |   | (1,493 | ) |
| Net realized gains on securities                                                  |                                           |   | (314     | )       |   |   | (2,224   | )        |   |   | (455 | ) |
| Net impairment losses recognized in earnings                                      |                                           |   | 3,137    |    |   |   | 5,937    |     |   |   | - |   |
| Net (gains) losses on interest rate swap contracts                                |                                           |   | (697     | )       |   |   | 542      |     |   |   | (27 | ) |
| Proceeds from sales of loans                                                      |                                           |   | 250,467  |    |   |   | 56,905   |     |   |   | 59,013 |   |
| Loans originated for sale                                                         |                                           |   | (253,442 | )       |   |   | (56,588  | )        |   |   | (57,926 | ) |
| Decrease in accrued interest receivable, excluding purchased interest             |                                           |   | 1,918    |    |   |   | 649      |     |   |   | 43 |   |
| (Increase) decrease in other assets                                               |                                           |   | (13,736  | )       |   |   | (4,477   | )        |   |   | 1,472 |   |
| (Decrease) increase in accrued expenses and other liabilities                     |                                           |   | (3,045   | )       |   |   | 3,797    |     |   |   | 1,502 |   |
| Other, net                                                                        |                                           |   | –  |    |   |   | 20       |     |   |   | 55 |   |
| Net cash provided by operating activities                                         |                                           |   | 6,603    |    |   |   | 29,071   |     |   |   | 29,973 |   |
| Cash flows from investing activities:                                             |                                           |   |     |    |   |   |     |     |   |   |   |   |
| Purchases of:                                                                     | Mortgage-backed securities available for sale  |   |     | – |   |   |     | (296,187 | )      |   |   | (258,737 | ) |
|                                                                              | Other investment securities available for sale |   |     | (304    | )      |   |     | (13,996  | )      |   |   | (39,290 | ) |
|                                                                              | Mortgage-backed securities held to maturity    |   |     | – |   |   |     | –  |   |   |   | – |   |
|                                                                              | Other investment securities held to maturity   |   |     | – |   |   |     | –  |   |   |   | (12,882 | ) |
| Proceeds from sales of:                                                           | Mortgage-backed securities available for sale  |   |     | – |   |   |     | 14,000   |   |   |   | 47,938 |   |
|                                                                              | Other investment securities available for sale |   |     | 1,604   |   |   |     | 67,321   |   |   |   | 43,015 |   |
|                                                                              | Mortgage-backed securities held to maturity    |   |     | – |   |   |     | –  |   |   |   | 38,501 |   |
|                                                                              | Other investment securities held to maturity   |   |     | – |   |   |     | –  |   |   |   | 21,698 |   |
| Maturities and principal payments of:                                             | Mortgage-backed securities available for sale  |   |     | 171,330 |   |   |     | 89,500   |   |   |   | 65,443 |   |
|                                                                              | Other investment securities available for sale |   |     | 17,475  |   |   |     | 15,680   |   |   |   | 22,967 |   |
|                                                                              | Mortgage-backed securities held to maturity    |   |     | – |   |   |     | –  |   |   |   | 3,191 |   |
|                                                                              | Other investment securities held to maturity   |   |     | – |   |   |     | –  |   |   |   | 20,490 |   |
| Purchase of Federal Home Loan Bank stock                                          |                                           |   | –  |    |   |   | (10,283  | )        |   |   | (2,998 | ) |
| Net increase in loans                                                             |                                           |   | (79,661  | )       |   |   | (229,703 | )        |   |   | (23,054 | ) |
| Proceeds from sale of loans                                                       |                                           |   | –  |    |   |   | 18,047   |     |   |   | – |   |
| Purchases of loans, including purchased interest                                  |                                           |   | (5,421   | )       |   |   | (54,931  | )        |   |   | (90,988 | ) |
| Proceeds from the sale of property acquired through foreclosure or repossession   |                                           |   | 607      |    |   |   | –  |     |   |   | – |   |
| Proceeds from sale of premises and equipment, net of selling costs                |                                           |   | –  |    |   |   | 1,433    |     |   |   | – |   |
| Purchases of premises and equipment                                               |                                           |   | (5,535   | )       |   |   | (4,183   | )        |   |   | (4,122 | ) |
| Equity investment in real estate limited partnership                              |                                           |   | (295     | )       |   |   | –  |     |   |   | – |   |
| Equity investment in capital trusts                                               |                                           |   | –  |    |   |   | (310     | )        |   |   | – |   |
| Payment of deferred acquisition obligation                                        |                                           |   | (2,509   | )       |   |   | (15,159  | )        |   |   | (6,720 | ) |
| Net cash provided by (used in) investing activities                               |                                           |   | 97,291   |    |   |   | (418,771 | )        |   |   | (175,548 | ) |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES   | (Dollars in thousands) |
|---------------------------------------------------|------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) |                   |

| Years ended December 31,                                                                 |   | 2009   |     |   | 2008   |   |      | 2007   |   |
|------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|-----------|--------|--------|
| Cash flows from financing activities:                                                    |   |   |     |   |   |   |      |   |   |
| Net increase (decrease) in deposits                                                      |   |   | 132,142  |   |   |   | 144,663   |   |   |   | (31,792 | ) |
| Net (decrease) increase in other borrowings                                              |   |   | (2,733   | )      |   |   | 1,707     |   |   |   | 18,675 |   |
| Proceeds from Federal Home Loan Bank advances                                            |   |   | 276,670  |   |   |   | 1,112,856 |   |   |   | 803,513 |   |
| Repayment of Federal Home Loan Bank advances                                             |   |   | (498,960 | )      |   |   | (899,621  | )      |   |   | (661,617 | ) |
| Issuance (purchase) of treasury stock, including net deferred compensation plan activity |   |   | 53       |   |   |   | 36        |   |   |   | (5,200 | ) |
| Proceeds from the issuance of common stock under dividend reinvestment plan              |   |   | 1,106    |   |   |   | 864       |   |   |   | – |   |
| Proceeds from the issuance of common stock                                               |   |   | –  |   |   |   | 46,874    |   |   |   | – |   |
| Net proceeds from the exercise of stock options and issuance of other                    |   |   |     |   |   |   |      |   |   |   |   |   |
| compensation-related equity instruments                                                  |   |   | 364      |   |   |   | 182       |   |   |   | 1,052 |   |
| Tax (expense) benefit from stock option exercises and issuance of other                  |   |   |     |   |   |   |      |   |   |   |   |   |
| compensation-related equity instruments                                                  |   |   | (26      | )      |   |   | 199       |   |   |   | 727 |   |
| Proceeds from the issuance of junior subordinated debentures, net of debt issuance costs |   |   | –  |   |   |   | 10,016    |   |   |   | – |   |
| Cash dividends paid                                                                      |   |   | (13,440  | )      |   |   | (10,998   | )      |   |   | (10,580 | ) |
| Net cash (used in) provided by financing activities                                      |   |   | (104,824 | )      |   |   | 406,778   |   |   |   | 114,778 |   |
| Net (decrease) increase in cash and cash equivalents                                     |   |   | (930     | )      |   |   | 17,078    |   |   |   | (30,797 | ) |
| Cash and cash equivalents at beginning of year                                           |   |   | 58,190   |   |   |   | 41,112    |   |   |   | 71,909 |   |
| Cash and cash equivalents at end of year                                                 |   | $      | 57,260   |   |   | $      | 58,190    |   |   | $ | 41,112 |   |
|                                                                                     |   |   |     |   |   |   |      |   |   |   |   |   |
| Noncash Investing and Financing Activities:                                              |   |   |     |   |   |   |      |   |   |   |   |   |
| Loans charged off                                                                        |   | $      | 5,162    |   |   | $      | 1,593     |   |   | $ | 778 |   |
| Net transfers from loans to property acquired through foreclosure or repossession        |   |   | 2,210    |   |   |   | 392       |   |   |   | – |   |
| Deferred acquisition obligation incurred                                                 |   |   | –  |   |   |   | 7,635     |   |   |   | 5,921 |   |
| Cumulative effect of change in accounting principle (see Note 4)                         |   |   | 1,859    |   |   |   | –   |   |   |   | – |   |
| Held to maturity securities transferred to available for sale                            |   |   | –  |   |   |   | –   |   |   |   | 162,997 |   |
|                                                                                     |   |   |     |   |   |   |      |   |   |   |   |   |
| Supplemental Disclosures:                                                                |   |   |     |   |   |   |      |   |   |   |   |   |
| Interest payments                                                                        |   |   | 61,561   |   |   |   | 75,661    |   |   |   | 76,264 |   |
| Income tax payments                                                                      |   |   | 9,776    |   |   |   | 13,587    |   |   |   | 11,440 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES |   |
|-------------------------------------------------|--------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS      |   |
| December 31, 2009 and 2008                      |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)               |   | Prior to Adoption of Measurement Date Provisions of SFAS No. 158 |    |   | Effect of Adopting Measurement Date Provisions of SFAS No. 158 |   |   | As of January 1, 2008 |   |
|--------------------------------------|--------|-----------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------|--------|--------|----------------------------|--------|
| Net deferred tax asset               |   | $                                                                     | 7,705   |   |                                                                | $      | 229    |                       |   | $ | 7,934 |   |
| Defined benefit pension liabilities  |   |                                                                  | 11,801  |   |                                                                |   | 655    |                       |   |   | 12,456 |   |
| Retained earnings                    |   |                                                                  | 154,647 |   |                                                                |   | (468   | )                          |   |   | 154,179 |   |
| Accumulated other comprehensive loss |   |                                                                  | (239    | )      |                                                                |   | 42     |                       |   |   | (197 | ) |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                               |   |      |    |   |       |   |    |       |   |   |    |   |
|------------------------------------------------------|--------|-----------|---------|--------|------------|--------|---------|------------|--------|--------|---------|--------|
|                                                 |   | Amortized |    |   | Unrealized |   |    | Unrealized |   |   | Fair    |   |
| December 31, 2009                                    |   | Cost (1)  |    |   | Gains      |   |    | Losses     |   |   | Value   |   |
| Securities Available for Sale:                       |   |      |    |   |       |   |    |       |   |   |    |   |
| 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 (2)                       |   |      | 3,354   |   |       |   | 396     |       |   |   | (140    | )      |   |   | 3,610 |   |
| Total securities available for sale                  |   | $         | 677,676 |   |       | $      | 28,517  |       |   | $      | (14,709 | )      |   | $ | 691,484 |   |

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

| (1) | Net of other-than-temporary impairment losses recognized in earnings, other than such noncredit-related amounts reversed on January 1, 2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Callable at the discretion of the issuer.  The balance as of December 31, 2009 includes 4 stocks that are callable at any time and 2 stocks that will be callable no later than November 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                                        |   |   |    |   |   |   |   |   |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                          |   |   |    |   |   |   |   |   |   |
| Years ended December 31,                                 |   | 2009   |    |   | 2008   |   |   | 2007   |   |
| Trust preferred securities                                    |   |   |    |   |   |   |   |   |   |
| Collateralized debt obligations                               |   | $      | 2,496   |   |   | $      | 1,859  |   |   | $ | – |   |
| Common and perpetual preferred stocks                         |   |   |    |   |   |   |   |   |   |   |   |   |
| Fannie Mae and Freddie Mac perpetual preferred stocks         |   |   | – |   |   |   | 1,470  |   |   |   | – |   |
| Other perpetual preferred stocks (financials)                 |   |   | 495     |   |   |   | 2,173  |   |   |   | – |   |
| Other common stocks (financials)                              |   |   | 146     |   |   |   | 435    |   |   |   | – |   |
| Other-than-temporary impairment losses recognized in earnings |   | $      | 3,137   |   |   | $      | 5,937  |   |   | $ | – |   |

| (Dollars in thousands)                                                                            |   |   |    |
|---------------------------------------------------------------------------------------------------|--------|--------|---------|
|                                                                                              |   |   |    |
| For the year ended December 31,                                                              |   | 2009   |    |
| Balance at beginning of period                                                                    |   | $      | – |   |
| Credit-related impairment loss on debt securities for which an other-than-temporary impairment    |   |   |    |   |
| was not previously recognized                                                                     |   |   | 1,817   |   |
| Additional increases to the amount of credit-related impairment loss on debt securities for which |   |   |    |   |
| an other-than-temporary impairment was previously recognized                                      |   |   | 679     |   |
| Balance at end of period                                                                          |   | $      | 2,496   |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                                                       |   | Less than 12 Months |    |   | 12 Months or Longer |   |    | Total      |   |
|------------------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|------------|--------|
|                                                                         |   |                |    |   | Fair                |   |    | Unrealized |   |   |   |   |   | Fair |   |   | Unrealized |   |   |   |   |   | Fair |   |   | Unrealized |   |
| At December 31, 2009                                                         |   |                | #       |   |                | Value  |    |       | Losses |   |   |   | # |   |   | Value |   |   | Losses |   |   |   | # |   |   | Value |   |   | Losses |   |
| Mortgage-backed securities                                                   |   |                |    |   |                |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued by U.S. government agencies and U.S. government-sponsored enterprises |   |                | 3       |   |                | $      | 2,218   |       |   | $ | 5 |   |   |   | 25 |   |   | $ | 38,023 |   |   | $ | 472 |   |   |   | 28 |   |   | $ | 40,241 |   |   | $ | 477 |   |
| States and                                                                   |   |                |    |   |                |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| political subdivisions                                                       |   |                | 4       |   |                |   | 3,836   |       |   |   | 45 |   |   |   | 3 |   |   |   | 2,097 |   |   |   | 169 |   |   |   | 7 |   |   |   | 5,933 |   |   |   | 214 |   |
| Trust preferred securities:                                                  |   |                |    |   |                |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individual name issuers                                                      |   |                | – |   |                |   | – |       |   |   | – |   |   |   | 11 |   |   |   | 20,586 |   |   |   | 9,977 |   |   |   | 11 |   |   |   | 20,586 |   |   |   | 9,977 |   |
| Collateralized debt obligations                                              |   |                | – |   |                |   | – |       |   |   | – |   |   |   | 2 |   |   |   | 1,065 |   |   |   | 3,901 |   |   |   | 2 |   |   |   | 1,065 |   |   |   | 3,901 |   |
| Subtotal, debt securities                                                    |   |                | 7       |   |                |   | 6,054   |       |   |   | 50 |   |   |   | 41 |   |   |   | 61,771 |   |   |   | 14,519 |   |   |   | 48 |   |   |   | 67,825 |   |   |   | 14,569 |   |
| Perpetual preferred stocks                                                   |   |                | 1       |   |                |   | 427     |       |   |   | 73 |   |   |   | 3 |   |   |   | 933 |   |   |   | 67 |   |   |   | 4 |   |   |   | 1,360 |   |   |   | 140 |   |
| Total temporarily                                                            |   |                |    |   |                |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| impaired securities                                                          |   |                | 8       |   |                | $      | 6,481   |       |   | $ | 123 |   |   |   | 44 |   |   | $ | 62,704 |   |   | $ | 14,586 |   |   |   | 52 |   |   | $ | 69,185 |   |   | $ | 14,709 |   |

| (Dollars in thousands)                                                       |   | Less than 12 Months |    |   | 12 Months or Longer |   |    | Total      |   |
|------------------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|------------|--------|
|                                                                         |   |                |    |   | Fair                |   |    | Unrealized |   |   |   |   |   | Fair |   |   | Unrealized |   |   |   |   |   | Fair |   |   | Unrealized |   |
| At December 31, 2008                                                         |   |                | #       |   |                | Value  |    |       | Losses |   |   |   | # |   |   | Value |   |   | Losses |   |   |   | # |   |   | Value |   |   | Losses |   |
| Mortgage-backed securities                                                   |   |                |    |   |                |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| issued by U.S. government agencies and U.S. government-sponsored enterprises |   |                | 64      |   |                | $      | 124,387 |       |   | $ | 2,140 |   |   |   | 22 |   |   | $ | 34,350 |   |   | $ | 1,943 |   |   |   | 86 |   |   | $ | 158,737 |   |   | $ | 4,083 |   |
| States and                                                                   |   |                |    |   |                |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| political subdivisions                                                       |   |                | 25      |   |                |   | 18,846  |       |   |   | 523 |   |   |   | 7 |   |   |   | 7,423 |   |   |   | 292 |   |   |   | 32 |   |   |   | 26,269 |   |   |   | 815 |   |
| Trust preferred securities:                                                  |   |                |    |   |                |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individual name issuers                                                      |   |                | – |   |                |   | – |       |   |   | – |   |   |   | 11 |   |   |   | 16,793 |   |   |   | 13,732 |   |   |   | 11 |   |   |   | 16,793 |   |   |   | 13,732 |   |
| Collateralized debt obligations                                              |   |                | – |   |                |   | – |       |   |   | – |   |   |   | 1 |   |   |   | 1,307 |   |   |   | 3,693 |   |   |   | 1 |   |   |   | 1,307 |   |   |   | 3,693 |   |
| Subtotal, debt securities                                                    |   |                | 89      |   |                |   | 143,233 |       |   |   | 2,663 |   |   |   | 41 |   |   |   | 59,873 |   |   |   | 19,660 |   |   |   | 130 |   |   |   | 203,106 |   |   |   | 22,323 |   |
| Perpetual preferred stocks                                                   |   |                | – |   |                |   | – |       |   |   | – |   |   |   | 5 |   |   |   | 2,062 |   |   |   | 792 |   |   |   | 5 |   |   |   | 2,062 |   |   |   | 792 |   |
| Total temporarily                                                            |   |                |    |   |                |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| impaired securities                                                          |   |                | 89      |   |                | $      | 143,233 |       |   | $ | 2,663 |   |   |   | 46 |   |   | $ | 61,935 |   |   | $ | 20,452 |   |   |   | 135 |   |   | $ | 205,168 |   |   | $ | 23,115 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                    |   | Due in  |    |   | After 1 Year |   |    | After 5 Years |   |   |     |   |   |   |    |
|-------------------------------------------|--------|---------|---------|--------|--------------|--------|---------|---------------|--------|--------|----------|--------|--------|--------|---------|
|                                      |   | 1 Year  |    |   | but within   |   |    | but within    |   |   | After    |   |   |   |    |
|                                      |   | or Less |    |   | 5 Years      |   |    | 10 Years      |   |   | 10 Years |   |   | Totals |    |
| Securities Available for Sale:            |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |
| U.S. Treasury obligations and obligations |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |
| of U.S. government-sponsored enterprises: |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |
| Amortized cost                            |   | $       | 12,161  |   |         | $      | 29,404  |          |   | $      | –  |   |   | $      | – |   |   | $ | 41,565 |   |
| Weighted average yield                    |   |    | 4.69    | %      |         |   | 5.42    | %             |   |   | –  | %      |   |   | – | % |   |   | 5.21 | % |
| Mortgage-backed securities issued by U.S. |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |   |   |   |   |   |
| government agencies & U.S.            |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |   |   |   |   |   |
| government-sponsored enterprises:         |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |   |   |   |   |   |
| Amortized cost                            |   |    | 125,350 |   |         |   | 250,860 |          |   |   | 91,215   |   |   |   | 35,690  |   |   |   | 503,115 |   |
| Weighted average yield                    |   |    | 4.66    | %      |         |   | 4.35    | %             |   |   | 3.72     | %      |   |   | 2.47    | % |   |   | 4.18 | % |
| State and political subdivisions:         |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |   |   |   |   |   |
| Amortized cost                            |   |    | – |   |         |   | 22,961  |          |   |   | 50,110   |   |   |   | 7,112   |   |   |   | 80,183 |   |
| Weighted average yield                    |   |    | – | %      |         |   | 3.87    | %             |   |   | 3.90     | %      |   |   | 3.83    | % |   |   | 3.89 | % |
| Trust preferred securities:               |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |   |   |   |   |   |
| Amortized cost (1)                        |   |    | – |   |         |   | – |          |   |   | –  |   |   |   | 35,529  |   |   |   | 35,529 |   |
| Weighted average yield                    |   |    | – | %      |         |   | – | %             |   |   | –  | %      |   |   | 1.75    | % |   |   | 1.75 | % |
| Corporate bonds:                          |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |   |   |   |   |   |
| Amortized cost                            |   |    | – |   |         |   | 13,172  |          |   |   | 100      |   |   |   | – |   |   |   | 13,272 |   |
| Weighted average yield                    |   |    | – | %      |         |   | 6.53    | %             |   |   | 3.29     | %      |   |   | – | % |   |   | 6.50 | % |
| Total debt securities:                    |   |    |    |   |         |   |    |          |   |   |     |   |   |   |    |   |   |   |   |   |
| Amortized cost                            |   | $       | 137,511 |   |         | $      | 316,397 |          |   | $      | 141,425  |   |   | $      | 78,331  |   |   | $ | 673,664 |   |
| Weighted average yield                    |   |    | 4.66    | %      |         |   | 4.50    | %             |   |   | 3.78     | %      |   |   | 1.47    | % |   |   | 4.03 | % |
| Fair value                                |   | $       | 143,653 |   |         | $      | 317,321 |          |   | $      | 146,191  |   |   | $      | 79,940  |   |   | $ | 687,105 |   |

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

| (Dollars in thousands)           |   |   |   |   |   |   |   |   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                             |   |   |   |   |   |   |   |   |   |
| Years ended December 31,         |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Proceeds from sales (1)          |   | $      | 1,604  |   |   | $      | 81,718 |   |   | $ | 151,672 |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross realized gains (1)         |   | $      | 318    |   |   | $      | 2,382  |   |   | $ | 2,181 |   |
| Gross realized losses            |   |   | (4     | )      |   |   | (158   | )      |   |   | (1,726 | ) |
| Net realized gains on securities |   | $      | 314    |   |   | $      | 2,224  |   |   | $ | 455 |   |

| (1)   | Includes annual contributions of appreciated equity securities to the Corporation’s charitable foundation in 2008 and 2007.  The cost of the annual contributions, included in noninterest expenses, amounted to $397 thousand and $520 thousand in 2008 and 2007, respectively.  These transactions resulted in realizedsecurities gains of $315 thousand and $397 thousand, respectively, for the same periods. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)           |   | December 31, 2009 |      |   |   | December 31, 2008 |   |
|----------------------------------|--------|-------------------|-----------|--------|--------|-------------------|--------|
|                             |   | Amount            |      |   | %      |              |   |   | Amount |   |   | % |   |
| Commercial:                      |   |              |      |   |   |              |   |   |   |   |   |   |   |
| Mortgages (1)                    |   | $                 | 496,996   |   |   |              | 26     | % |   |   | $ | 407,904 |   |   |   | 22 | % |
| Construction and development (2) |   |              | 72,293    |   |   |              | 4      | % |   |   |   | 49,599 |   |   |   | 3 | % |
| Other (3)                        |   |              | 415,261   |   |   |              | 21     | % |   |   |   | 422,810 |   |   |   | 23 | % |
| Total commercial                 |   |              | 984,550   |   |   |              | 51     | % |   |   |   | 880,313 |   |   |   | 48 | % |
|                             |   |              |      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate:         |   |              |      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Mortgages (4)                    |   |              | 593,981   |   |   |              | 31     | % |   |   |   | 626,663 |   |   |   | 34 | % |
| Homeowner construction           |   |              | 11,594    |   |   |              | 1      | % |   |   |   | 15,389 |   |   |   | 1 | % |
| Total residential real estate    |   |              | 605,575   |   |   |              | 32     | % |   |   |   | 642,052 |   |   |   | 35 | % |
|                             |   |              |      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                         |   |              |      |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Home equity lines (5)            |   |              | 209,801   |   |   |              | 11     | % |   |   |   | 170,662 |   |   |   | 9 | % |
| Home equity loans (5)            |   |              | 62,430    |   |   |              | 3      | % |   |   |   | 89,297 |   |   |   | 5 | % |
| Other (6)                        |   |              | 57,312    |   |   |              | 3      | % |   |   |   | 56,830 |   |   |   | 3 | % |
| Total consumer                   |   |              | 329,543   |   |   |              | 17     | % |   |   |   | 316,789 |   |   |   | 17 | % |
| Total loans (7)                  |   | $                 | 1,919,668 |   |   |              | 100    | % |   |   | $ | 1,839,154 |   |   |   | 100 | % |

| (1) | Amortizing mortgages and lines of credit, primarily secured by income producing property. $135 million of these loans at December 31, 2009 were pledged as collateral for Federal Home Loan Bank borrowings (see Note 11). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Loans for construction of residential and commercial properties and for land development. |
|-----|-------------------------------------------------------------------------------------------|

| (3) | Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. At December 31, 2009, $40 million of these loans were pledged as collateral for Federal Home Loan Bank borrowings and $83 million of these loans were collateralized for the discount window at the Federal Reserve Bank (see Note 11). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | A substantial portion of these loans is used as qualified collateral for FHLBB borrowings (see Note 11 for additional discussion of FHLBB borrowings). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | A significant portion of these loans was pledged as collateral for Federal Home Loan Bank borrowings (see Note 11). |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (6) |  Fixed rate consumer installment loans. |
|-----|----------------------------------------------|

| (7) |  Net of unamortized loan origination costs, net of fees, totaling $103 thousand at December 31, 2009 and net of unamortized loan origination fees, net of costs totaling $2 thousand at December 31, 2008.  Also includes $140 thousand and $259 thousand of net discounts on purchased loans at December 31, 2009 and December 31, 2008, respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                                                        |   |   |   |   |   |   |
|-------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                          |   |   |   |   |   |   |
| December 31,                                                                  |   | 2009   |   |   | 2008   |   |
| Nonaccrual commercial loans, excluding troubled debt restructured loans:      |   |   |   |   |   |   |
| Commercial mortgages                                                          |   | $      | 11,588 |   |   | $      | 1,942 |   |
| Other commercial                                                              |   |   | 8,847  |   |   |   | 3,845 |   |
| Total nonaccrual commercial loans, excluding troubled debt restructured loans |   |   | 20,435 |   |   |   | 5,787 |   |
| Nonaccrual troubled debt restructured loans:                                  |   |   |   |   |   |   |   |   |
| Other commercial                                                              |   |   | 228    |   |   |   | – |   |
| Residential real estate mortgages                                             |   |   | 336    |   |   |   | – |   |
| Consumer                                                                      |   |   | 45     |   |   |   | – |   |
| Nonaccrual troubled debt restructured loans                                   |   |   | 609    |   |   |   | – |   |
| Accruing troubled debt restructured loans:                                    |   |   |   |   |   |   |   |   |
| Commercial mortgages                                                          |   |   | 5,566  |   |   |   | – |   |
| Other commercial                                                              |   |   | 540    |   |   |   | – |   |
| Residential real estate mortgages                                             |   |   | 2,736  |   |   |   | 263 |   |
| Consumer                                                                      |   |   | 858    |   |   |   | 607 |   |
| Accruing troubled debt restructured loans                                     |   |   | 9,700  |   |   |   | 870 |   |
| Total troubled debt restructured loans                                        |   |   | 10,309 |   |   |   | 870 |   |
| Other:                                                                        |   |   |   |   |   |   |   |   |
| Nonaccrual residential real estate mortgages                                  |   |   | 772    |   |   |   | – |   |
| Accruing consumer                                                             |   |   | 38     |   |   |   | – |   |
| Total other                                                                   |   |   | 810    |   |   |   | – |   |
| Total recorded investment in impaired loans                                   |   | $      | 31,554 |   |   | $      | 6,657 |   |

| (Dollars in thousands)                      |   |   |   |   |   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                        |   |   |   |   |   |   |
| December 31,                                |   | 2009   |   |   | 2008   |   |
| Impaired loans requiring an allowance       |   | $      | 19,480 |   |   | $      | 3,492 |   |
| Impaired loans not requiring an allowance   |   |   | 12,074 |   |   |   | 3,165 |   |
| Total recorded investment in impaired loans |   | $      | 31,554 |   |   | $      | 6,657 |   |
| Loss allocation on impaired loans           |   | $      | 2,459  |   |   | $      | 698 |   |

| (Dollars in thousands)                        |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |   |   |   |   |
| Years ended December 31,                      |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Average recorded investment in impaired loans |   | $      | 19,389 |   |   | $      | 6,161  |   |   | $ | 2,903 |   |
| Interest income recognized on impaired loans  |   | $      | 1,084  |   |   | $      | 507    |   |   | $ | 457 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)             |   | Loan      |    |   |      |   |    |   |   |
|------------------------------------|--------|-----------|---------|--------|-----------|--------|---------|--------|--------|
|                               |   | Servicing |    |   | Valuation |   |    |   |   |
|                               |   | Rights    |    |   | Allowance |   |    | Total  |   |
| Balance at December 31, 2006       |   | $         | 1,182   |   |      | $      | (224    | )      |   | $ | 958 |   |
| Loan servicing rights capitalized  |   |      | 246     |   |      |   | – |   |   |   | 246 |   |
| Amortization (1)                   |   |      | (361    | )      |      |   | – |   |   |   | (361 | ) |
| Decrease in impairment reserve (2) |   |      | – |   |      |   | 40      |   |   |   | 40 |   |
| Balance at December 31, 2007       |   |      | 1,067   |   |      |   | (184    | )      |   |   | 883 |   |
| Loan servicing rights capitalized  |   |      | 167     |   |      |   | – |   |   |   | 167 |   |
| Amortization (1)                   |   |      | (273    | )      |      |   | – |   |   |   | (273 | ) |
| Increase in impairment reserve (2) |   |      | – |   |      |   | (59     | )      |   |   | (59 | ) |
| Balance at December 31, 2008       |   |      | 961     |   |      |   | (243    | )      |   |   | 718 |   |
| Loan servicing rights capitalized  |   |      | 231     |   |      |   | – |   |   |   | 231 |   |
| Amortization (1)                   |   |      | (223    | )      |      |   | – |   |   |   | (223 | ) |
| Decrease in impairment reserve (2) |   |      | – |   |      |   | 76      |   |   |   | 76 |   |
| Balance at December 31, 2009       |   | $         | 969     |   |      | $      | (167    | )      |   | $ | 802 |   |

| (1)   | Amortization expense is charged against loan servicing fee income. |
|-----------------|--------------------------------------------------------------------|

| (2)   | (Increases) and decreases in the impairment reserve are recorded as (reductions) and additions to loan servicing fee income. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| (Dollars in thousands)               |       |   |   |   |
|--------------------------------------|------------|--------|--------|--------|
|                                 |       |   |   |   |
| Years ending December 31:            | 2010       |   | $      | 191    |   |
|                                 | 2011       |   |   | 154    |   |
|                                 | 2012       |   |   | 123    |   |
|                                 | 2013       |   |   | 97     |   |
|                                 | 2014       |   |   | 75     |   |
|                                 | Thereafter |   |   | 329    |   |
| Total estimated amortization expense |       |   | $      | 969    |   |

| (Dollars in thousands) |   |   |    |   |   |   |
|------------------------|--------|--------|---------|--------|--------|--------|
|                   |   |   |    |   |   |   |
| December 31,           |   | 2009   |    |   | 2008   |   |
| Residential mortgages  |   | $      | 87,015  |   |   | $      | 82,961 |   |
| Commercial loans       |   |   | 41,099  |   |   |   | 43,094 |   |
| Total                  |   | $      | 128,114 |   |   | $      | 126,055 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                     |   |   |   |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                       |   |   |   |   |   |   |   |   |   |
| Years ended December 31,                   |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Balance at beginning of year               |   | $      | 23,725 |   |   | $      | 20,277 |   |   | $ | 18,894 |   |
| Provision charged to expense               |   |   | 8,500  |   |   |   | 4,800  |   |   |   | 1,900 |   |
| Recoveries of loans previously charged off |   |   | 337    |   |   |   | 241    |   |   |   | 261 |   |
| Loans charged off                          |   |   | (5,162 | )      |   |   | (1,593 | )      |   |   | (778 | ) |
| Balance at end of year                     |   | $      | 27,400 |   |   | $      | 23,725 |   |   | $ | 20,277 |   |

| (Dollars in thousands)            |   |   |   |   |   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                              |   |   |   |   |   |   |
| December 31,                      |   | 2009   |   |   | 2008   |   |
| Land and improvements             |   | $      | 5,265  |   |   | $      | 5,021 |   |
| Premises and improvements         |   |   | 33,467 |   |   |   | 30,957 |   |
| Furniture, fixtures and equipment |   |   | 20,936 |   |   |   | 20,269 |   |
|                              |   |   | 59,668 |   |   |   | 56,247 |   |
| Less accumulated depreciation     |   |   | 32,144 |   |   |   | 31,145 |   |
| Total premises and equipment, net |   | $      | 27,524 |   |   | $      | 25,102 |   |

----

Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)       |                |   |   |   |
|------------------------------|---------------------|--------|--------|--------|
|                         |                |   |   |   |
| Years ending December 31:    | 2010                |   | $      | 1,384  |   |
|                         | 2011                |   |   | 1,280  |   |
|                         | 2012                |   |   | 699    |   |
|                         | 2013                |   |   | 608    |   |
|                         | 2014                |   |   | 592    |   |
|                         | 2015 and thereafter |   |   | 1,881  |   |
| Total minimum lease payments |                |   | $      | 6,444  |   |

|                                    |   |       |   |   | Wealth     |   |   |   |   |
|-----------------------------------------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
| (Dollars in thousands)                  |   | Commercial |   |   | Management |   |   |   |   |
|                                    |   | Banking    |   |   | Service    |   |   |   |   |
|                                    |   | Segment    |   |   | Segment    |   |   | Total  |   |
| Balance at December 31, 2007            |   | $          | 22,591 |   |       | $      | 27,888 |   |   | $ | 50,479 |   |
| Additions to goodwill during the period |   |       | -      |   |       |   | 7,635  |   |   |   | 7,635 |   |
| Impairment recognized                   |   |       | -      |   |       |   | -      |   |   |   | - |   |
| Balance at December 31, 2008            |   |       | 22,591 |   |       |   | 35,523 |   |   |   | 58,114 |   |
| Additions to goodwill during the period |   |       | -      |   |       |   | -      |   |   |   | - |   |
| Impairment recognized                   |   |       | -      |   |       |   | -      |   |   |   | - |   |
| Balance at December 31, 2009            |   | $          | 22,591 |   |       | $      | 35,523 |   |   | $ | 58,114 |   |

|                         |   |         |   |   |      |   |   |        |   |   |   |   |
|------------------------------|--------|--------------|--------|--------|-----------|--------|--------|-------------|--------|--------|--------|--------|
| (Dollars in thousands)       |   | Core Deposit |   |   | Advisory  |   |   | Non-compete |   |   |   |   |
|                         |   | Intangible   |   |   | Contracts |   |   | Agreements  |   |   | Total  |   |
| Balance at December 31, 2007 |   | $            | 510    |   |      | $      | 10,743 |        |   | $      | 180    |   |   | $ | 11,433 |   |
| Amortization                 |   |         | 120    |   |      |   | 1,112  |        |   |   | 49     |   |   |   | 1,281 |   |
| Balance at December 31, 2008 |   |         | 390    |   |      |   | 9,631  |        |   |   | 131    |   |   |   | 10,152 |   |
| Amortization                 |   |         | 120    |   |      |   | 1,040  |        |   |   | 49     |   |   |   | 1,209 |   |
| Balance at December 31, 2009 |   | $            | 270    |   |      | $      | 8,591  |        |   | $      | 82     |   |   | $ | 8,943 |   |

----

Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)         |   |     |    |   |      |   |   |        |   |   |    |   |
|--------------------------------|--------|----------|---------|--------|-----------|--------|--------|-------------|--------|--------|---------|--------|
|                           |   | Core     |    |   | Advisory  |   |   | Non-compete |   |   |    |   |
| Estimated amortization expense |   | Deposits |    |   | Contracts |   |   | Agreements  |   |   | Total   |   |
| 2010                           |   | $        | 120     |   |      | $      | 922    |        |   | $      | 49      |   |   | $ | 1,091 |   |
| 2011                           |   |     | 120     |   |      |   | 768    |        |   |   | 33      |   |   |   | 921 |   |
| 2012                           |   |     | 30      |   |      |   | 727    |        |   |   | – |   |   |   | 757 |   |
| 2013                           |   |     | – |   |      |   | 680    |        |   |   | – |   |   |   | 680 |   |
| 2014                           |   |     | – |   |      |   | 644    |        |   |   | – |   |   |   | 644 |   |

| (Dollars in thousands)   |   |     |   |   |      |   |   |        |   |   |   |   |
|--------------------------|--------|----------|--------|--------|-----------|--------|--------|-------------|--------|--------|--------|--------|
|                     |   | Core     |   |   | Advisory  |   |   | Non-compete |   |   |   |   |
|                     |   | Deposits |   |   | Contracts |   |   | Agreements  |   |   | Total  |   |
| December 31, 2009:       |   |     |   |   |      |   |   |        |   |   |   |   |
| Gross carrying amount    |   | $        | 2,997  |   |      | $      | 13,657 |        |   | $      | 1,147  |   |   | $ | 17,801 |   |
| Accumulated amortization |   |     | 2,727  |   |      |   | 5,066  |        |   |   | 1,065  |   |   |   | 8,858 |   |
| Net amount               |   | $        | 270    |   |      | $      | 8,591  |        |   | $      | 82     |   |   | $ | 8,943 |   |
|                     |   |     |   |   |      |   |   |        |   |   |   |   |   |   |   |   |
| December 31, 2008:       |   |     |   |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Gross carrying amount    |   | $        | 2,997  |   |      | $      | 13,657 |        |   | $      | 1,147  |   |   | $ | 17,801 |   |
| Accumulated amortization |   |     | 2,607  |   |      |   | 4,026  |        |   |   | 1,016  |   |   |   | 7,649 |   |
| Net amount               |   | $        | 390    |   |      | $      | 9,631  |        |   | $      | 131    |   |   | $ | 10,152 |   |

----

Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)         |   |   |   |   |   |   |   |   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                           |   |   |   |   |   |   |   |   |   |
| Years ended December 31,       |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Current tax expense (benefit): |   |   |   |   |   |   |   |   |   |
| Federal                        |   | $      | 7,595  |   |   | $      | 12,900 |   |   | $ | 12,512 |   |
| State                          |   |   | 251    |   |   |   | (273   | )      |   |   | 646 |   |
| Total current tax expense      |   |   | 7,846  |   |   |   | 12,627 |   |   |   | 13,158 |   |
| Deferred tax benefit:          |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                        |   |   | (1,510 | )      |   |   | (3,830 | )      |   |   | (2,179 | ) |
| State                          |   |   | 10     |   |   |   | (1,478 | )      |   |   | (132 | ) |
| Total deferred tax benefit     |   |   | (1,500 | )      |   |   | (5,308 | )      |   |   | (2,311 | ) |
| Total income tax expense       |   | $      | 6,346  |   |   | $      | 7,319  |   |   | $ | 10,847 |   |

| (Dollars in thousands)                                             |   |   |    |   |   |   |   |   |   |
|--------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                               |   |   |    |   |   |   |   |   |   |
| Years ended December 31,                                           |   | 2009   |    |   | 2008   |   |   | 2007   |   |
| Tax expense at Federal statutory rate                              |   | $      | 7,855   |   |   | $      | 10,322 |   |   | $ | 12,127 |   |
| (Decrease) increase in taxes resulting from:                       |   |   |    |   |   |   |   |   |   |   |   |   |
| Tax-exempt income                                                  |   |   | (1,110  | )      |   |   | (1,094 | )      |   |   | (1,014 | ) |
| Dividends received deduction                                       |   |   | (60     | )      |   |   | (138   | )      |   |   | (217 | ) |
| BOLI                                                               |   |   | (628    | )      |   |   | (630   | )      |   |   | (557 | ) |
| Adjustment to net deferred tax assets for enacted changes in state |   |   |    |   |   |   |   |   |   |   |   |   |
| tax law and rates, net of  Federal income tax            |   |   | – |   |   |   | (841   | )      |   |   | – |   |
| Net decrease related to uncertain state tax positions, net of      |   |   |    |   |   |   |   |   |   |   |   |   |
| Federal income tax                                                 |   |   | – |   |   |   | (556   | )      |   |   | – |   |
| State income tax expense, net of Federal income tax benefit        |   |   | 163     |   |   |   | 380    |   |   |   | 420 |   |
| Other                                                              |   |   | 126     |   |   |   | (124   | )      |   |   | 88 |   |
| Total income tax expense                                           |   | $      | 6,346   |   |   | $      | 7,319  |   |   | $ | 10,847 |   |

----

Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                                 |   |   |    |   |   |   |
|--------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                   |   |   |    |   |   |   |
| December 31,                                           |   | 2009   |    |   | 2008   |   |
| Gross deferred tax assets:                             |   |   |    |   |   |   |
| Allowance for loan losses                              |   | $      | 9,744   |   |   | $      | 8,456 |   |
| Defined benefit pension obligations                    |   |   | 7,451   |   |   |   | 8,757 |   |
| Losses on write-downs of securities to fair value      |   |   | 1,530   |   |   |   | 2,627 |   |
| Net unrealized losses on securities available for sale |   |   | – |   |   |   | 1,146 |   |
| Deferred compensation                                  |   |   | 1,618   |   |   |   | 1,186 |   |
| Deferred loan origination fees                         |   |   | 988     |   |   |   | 973 |   |
| Other                                                  |   |   | 1,577   |   |   |   | 1,939 |   |
| Gross deferred tax assets                              |   |   | 22,908  |   |   |   | 25,084 |   |
| Gross deferred tax liabilities:                        |   |   |    |   |   |   |   |   |
| Net unrealized gains on securities available for sale  |   |   | (4,922  | )      |   |   | – |   |
| Amortization of intangibles                            |   |   | (3,114  | )      |   |   | (3,522 | ) |
| Deferred loan origination costs                        |   |   | (2,269  | )      |   |   | (2,135 | ) |
| Other                                                  |   |   | (634    | )      |   |   | (643 | ) |
| Gross deferred tax liabilities                         |   |   | (10,939 | )      |   |   | (6,300 | ) |
| Net deferred tax asset                                 |   | $      | 11,969  |   |   | $      | 18,784 |   |

| (Dollars in thousands)                                     |   |   |    |   |   |   |
|------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                       |   |   |    |   |   |   |
| Years ended December 31,                              |   | 2009   |    |   | 2008   |   |
| Balance at beginning of year                               |   | $      | 545     |   |   | $      | 1,358 |   |
| Increase related to current year tax positions             |   |   | – |   |   |   | 87 |   |
| Decrease related to prior period tax positions             |   |   | (157    | )      |   |   | – |   |
| Reductions relating to settlements with taxing authorities |   |   | (261    | )      |   |   | (892 | ) |
| Reductions as a result of lapse of statute of limitations  |   |   | – |   |   |   | (8 | ) |
| Balance at end of year                                     |   | $      | 127     |   |   | $      | 545 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)       |                |   |   |    |
|------------------------------|---------------------|--------|--------|---------|
|                         |                |   |   |    |
| Years ending December 31:    | 2010                |   | $      | 676,087 |   |
|                         | 2011                |   |   | 91,608  |   |
|                         | 2012                |   |   | 56,047  |   |
|                         | 2013                |   |   | 47,810  |   |
|                         | 2014                |   |   | 59,127  |   |
|                         | 2015 and thereafter |   |   | 1,005   |   |
| Balance at December 31, 2009 |                |   | $      | 931,684 |   |

| (Dollars in thousands)       |                                        |   |   |    |
|------------------------------|---------------------------------------------|--------|--------|---------|
|                         |                                        |   |   |    |
| Maturing:                    | January 1, 2010 to March 31, 2010 |   | $      | 197,868 |   |
|                         | April 1, 2010 to June 30, 2010    |   |   | 70,262  |   |
|                         | July 1, 2010 to December 31, 2010 |   |   | 64,459  |   |
|                         | January 1, 2011 and beyond             |   |   | 82,489  |   |
| Balance at December 31, 2009 |                                        |   | $      | 415,078 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands) |   |
|------------------------|--------|
|                   |   | December 31, 2009 |   |   |   | December 31, 2008 |   |
|                   |   | Scheduled |   |   | Redeemed at |   |   | Weighted |   |   |   | Scheduled |   |   | Redeemed at |   |   | Weighted |   |
|                   |   | Maturity |   |   | Call Date (1) |   |  Average Rate (2) |   |   | Maturity |   |   | Call Date (1) |   |   | Average Rate (2) |
| 2009                   |   | $ | – |   |   | $ | – |   |   |   | – | % |   |   | $ | 286,232 |   |   | $ | 299,232 |   |   |   | 2.17 | % |
| 2010                   |   |   | 121,104 |   |   |   | 134,104 |   |   |   | 4.11 | % |   |   |   | 115,638 |   |   |   | 115,638 |   |   |   | 4.29 | % |
| 2011                   |   |   | 135,040 |   |   |   | 127,040 |   |   |   | 3.94 | % |   |   |   | 124,559 |   |   |   | 116,559 |   |   |   | 4.09 | % |
| 2012                   |   |   | 102,365 |   |   |   | 102,365 |   |   |   | 4.58 | % |   |   |   | 94,372 |   |   |   | 94,372 |   |   |   | 4.76 | % |
| 2013                   |   |   | 108,534 |   |   |   | 103,534 |   |   |   | 4.09 | % |   |   |   | 101,472 |   |   |   | 96,472 |   |   |   | 4.16 | % |
| 2014                   |   |   | 53,562 |   |   |   | 53,562 |   |   |   | 3.85 | % |   |   |   | 20,630 |   |   |   | 20,630 |   |   |   | 4.58 | % |
| 2015 and after         |   |   | 86,723 |   |   |   | 86,723 |   |   |   | 4.87 | % |   |   |   | 86,723 |   |   |   | 86,723 |   |   |   | 4.87 | % |
|                   |   | $ | 607,328 |   |   | $ | 607,328 |   |   |   |   |   |   |   | $ | 829,626 |   |   | $ | 829,626 |   |   |   |   |   |

| (1)   | Callable FHLBB advances are shown in the respective periods assuming that the callable debt is redeemed at the call date while all other advances are shown in the periods corresponding to their scheduled maturity date. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Weighted average rate based on scheduled maturity dates. |
|-----------------|----------------------------------------------------------|

| (Dollars in thousands) |   |
|------------------------|--------|
|                   |   | Original Terms |   |   |   | Revised Terms |   |
|                   |   | Scheduled |   |   | Weighted |   |   |   | Scheduled |   |   | Weighted |   |
|                   |   | Maturity |   |   | Average Rate (1) |   |   |   | Maturity |   |   | Average Rate (1) |   |
| 2011                   |   | $ | 40,000 |   |   |   | 4.27 | % |   |   | $ | – |   |   |   | – | % |
| 2012                   |   |   | 10,000 |   |   |   | 5.19 | % |   |   |   | 25,000 |   |   |   | 3.56 | % |
| 2013                   |   |   | – |   |   |   | – |   |   |   |   | 15,000 |   |   |   | 4.15 | % |
| 2014                   |   |   | – |   |   |   | – |   |   |   |   | 10,000 |   |   |   | 5.06 | % |
|                   |   | $ | 50,000 |   |   |   |   |   |   |   | $ | 50,000 |   |   |   |   |   |

| (1)   | Weighted average rate based on scheduled maturity dates. |
|-----------------|----------------------------------------------------------|

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                           |   |   |    |   |   |   |    |   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                             |   |   |    |   |   |   |    |   |   |
| As of and for the years ended December 31,  |   | 2009   |    |   | 2008   |   |    | 2007   |   |
| Average amount outstanding during the period     |   | $      | 49,808  |   |   | $      | 92,915  |   |   | $ | 36,640 |   |
| Amount outstanding at end of period              |   |   | 5,000   |   |   |   | 170,000 |   |   |   | 70,000 |   |
| Highest month end balance during period          |   |   | 150,000 |   |   |   | 170,000 |   |   |   | 70,000 |   |
| Weighted-average interest rate at end of period  |   |   | 0.15    | %      |   |   | 0.73    | %      |   |   | 4.70 | % |
| Weighted-average interest rate during the period |   |   | 0.57    | %      |   |   | 2.45    | %      |   |   | 5.25 | % |

 I issued $8 million of capital securities (“Trust I Capital Securities”) in a private placement of trust preferred securities.  The Trust I Capital Securities mature in September 2035, are redeemable at the Bancorp’soption beginning after five years, and require quarterly distributions by Trust I to the holder of the Trust I Capital Securities, at a rate of 5.965% until September 15, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45%.  The Bancorp has guaranteed the Trust I Capital Securities and, to the extent not paid by Trust I, accrued and unpaid distributions on the Trust I Capital Securities, as well as the redemption price payable to the Trust I Capital Securities holders.  Theproceeds of the Trust I Capital Securities, along with proceeds from the issuance of common securities by Trust I to the Bancorp, were used to purchase $8.3 million of the Bancorp's junior subordinated deferrable interest notes (the “Trust I Debentures”) and constitute the primary asset of Trust I.  Like the Trust I Capital Securities, the Trust I Debentures bear interest at a rate of 5.965% until September 15, 2010, and thereafter at a rate equal to the three-month LIBOR rateplus 1.45%.  The Trust I Debentures mature on September 15, 2035, but may be redeemed at par at the Bancorp’s option, subject to the approval of the applicable banking regulator to the extent required under applicable guidelines or policies, at any time on or after September 15, 2010, or upon the occurrence of certain special qualifying events. 

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                      |   |   |    |   |   |   |
|---------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                        |   |   |    |   |   |   |
| December 31,                                |   | 2009   |    |   | 2008   |   |
| Treasury, Tax and Loan demand note balance  |   | $      | 1,676   |   |   | $      | 4,382 |   |
| Deferred acquisition obligations            |   |   | – |   |   |   | 2,506 |   |
| Securities sold under repurchase agreements |   |   | 19,500  |   |   |   | 19,500 |   |
| Other                                       |   |   | 325     |   |   |   | 355 |   |
| Other borrowings                            |   | $      | 21,501  |   |   | $      | 26,743 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                    |   | Actual |    |   | For Capital Adequacy Purposes |   |   | To Be “Well Capitalized” Under Prompt Corrective Action Provisions |   |
|-------------------------------------------|--------|--------|---------|--------|-------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
|                                      |   | Amount |    |   | Ratio                         |   |   | Amount                                                                         |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of December 31, 2009:                  |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets):  |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |
| Corporation                               |   | $      | 244,382 |   |                          |   | 12.40  | %                                                                              |   | $ | 157,615 |   |   |   | 8.00 | % |   | $ | 197,019 |   |   |   | 10.00 | % |
| Bank                                      |   | $      | 242,536 |   |                          |   | 12.32  | %                                                                              |   | $ | 157,470 |   |   |   | 8.00 | % |   | $ | 196,838 |   |   |   | 10.00 | % |
| Tier 1 Capital (to Risk-Weighted Assets): |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporation                               |   | $      | 219,552 |   |                          |   | 11.14  | %                                                                              |   | $ | 78,808 |   |   |   | 4.00 | % |   | $ | 118,212 |   |   |   | 6.00 | % |
| Bank                                      |   | $      | 217,729 |   |                          |   | 11.06  | %                                                                              |   | $ | 78,735 |   |   |   | 4.00 | % |   | $ | 118,103 |   |   |   | 6.00 | % |
| Tier 1 Capital (to Average Assets): (1)   |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporation                               |   | $      | 219,552 |   |                          |   | 7.82   | %                                                                              |   | $ | 112,269 |   |   |   | 4.00 | % |   | $ | 140,336 |   |   |   | 5.00 | % |
| Bank                                      |   | $      | 217,729 |   |                          |   | 7.76   | %                                                                              |   | $ | 112,165 |   |   |   | 4.00 | % |   | $ | 140,206 |   |   |   | 5.00 | % |
|                                      |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2008:                  |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital (to Risk-Weighted Assets):  |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporation                               |   | $      | 235,728 |   |                          |   | 12.54  | %                                                                              |   | $ | 150,339 |   |   |   | 8.00 | % |   | $ | 187,923 |   |   |   | 10.00 | % |
| Bank                                      |   | $      | 237,023 |   |                          |   | 12.62  | %                                                                              |   | $ | 150,201 |   |   |   | 8.00 | % |   | $ | 187,751 |   |   |   | 10.00 | % |
| Tier 1 Capital (to Risk-Weighted Assets): |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporation                               |   | $      | 212,231 |   |                          |   | 11.29  | %                                                                              |   | $ | 75,169 |   |   |   | 4.00 | % |   | $ | 112,754 |   |   |   | 6.00 | % |
| Bank                                      |   | $      | 213,547 |   |                          |   | 11.37  | %                                                                              |   | $ | 75,101 |   |   |   | 4.00 | % |   | $ | 112,651 |   |   |   | 6.00 | % |
| Tier 1 Capital (to Average Assets): (1)   |   |   |    |   |                          |   |   |                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporation                               |   | $      | 212,231 |   |                          |   | 7.53   | %                                                                              |   | $ | 112,799 |   |   |   | 4.00 | % |   | $ | 140,999 |   |   |   | 5.00 | % |
| Bank                                      |   | $      | 213,547 |   |                          |   | 7.58   | %                                                                              |   | $ | 112,724 |   |   |   | 4.00 | % |   | $ | 140,905 |   |   |   | 5.00 | % |

| (1)   | Leverage ratio |
|-----------------|----------------|

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                                                         |   |   |    |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                           |   |   |    |   |   |   |
| December 31,                                                                   |   | 2009   |    |   | 2008   |   |
| Financial instruments whose contract amounts represent credit risk:            |   |   |    |   |   |   |
| Commitments to extend credit:                                                  |   |   |    |   |   |   |
| Commercial loans                                                               |   | $      | 186,943 |   |   | $      | 206,515 |   |
| Home equity lines                                                              |   |   | 185,892 |   |   |   | 178,371 |   |
| Other loans                                                                    |   |   | 25,691  |   |   |   | 22,979 |   |
| Standby letters of credit                                                      |   |   | 8,712   |   |   |   | 7,679 |   |
| Equity commitment to an affordable housing partnership                         |   |   | 690     |   |   |   | – |   |
| Financial instruments whose notional amounts exceed the amount of credit risk: |   |   |    |   |   |   |   |   |
| Forward loan commitments:                                                      |   |   |    |   |   |   |   |   |
| Commitments to originate fixed rate mortgage loans to be sold                  |   |   | 15,898  |   |   |   | 25,662 |   |
| Commitments to sell fixed rate mortgage loans                                  |   |   | 25,791  |   |   |   | 28,192 |   |
| Customer related derivative contracts:                                         |   |   |    |   |   |   |   |   |
| Interest rate swaps with customers                                             |   |   | 53,725  |   |   |   | 13,981 |   |
| Mirror swaps with counterparties                                               |   |   | 53,725  |   |   |   | 13,981 |   |
| Interest rate risk management contract:                                        |   |   |    |   |   |   |   |   |
| Interest rate swap                                                             |   |   | 10,000  |   |   |   | 10,000 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                                        |   Asset Derivatives |   |               | Liability Derivatives |   |
|---------------------------------------------------------------|--------------------------|--------|--------------------|-----------------------|--------|
|                                                          |                     |   | Fair Value         |                  |   |   |   | Fair Value |   |
|                                                          | Balance Sheet Location   |   | Dec. 31, 2009 |                  |   | Dec. 31, 2008 |   |   | Balance Sheet Location |   | Dec. 31, 2009 |   |   | Dec. 31, 2008 |   |
| Derivatives designated as cash flow hedging instruments: |                     |   |               |                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate risk management contract:                       |                     |   |               |                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap                                            |                     |   |               |                  |   |   |   |   |   |   | Accrued expenses |   |   |   |   |   |   |   |   |
|                                                          |                     |   | $                  | –               |   |   | $ | – |   |   | & other liabilities |   | $ | 434 |   |   | $ | – |   |
| Derivatives not designated as hedging instruments:       |                     |   |               |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forward loan commitments:                                     |                     |   |               |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to originate fixed rate mortgage                  |                     |   |               |                  |   |   |   |   |   |   | Accrued expenses |   |   |   |   |   |   |   |   |
|  loans to be sold                                        | Other assets             |   |               | 22                    |   |   |   | 152 |   |   | & other liabilities |   |   | 180 |   |   |   | 18 |   |
| Commitments to sell fixed rate mortgage                       |                     |   |               |                  |   |   |   |   |   |   | Accrued expenses |   |   |   |   |   |   |   |   |
| loans                                                         | Other assets             |   |               | 342                   |   |   |   | 18 |   |   | & other liabilities |   |   | 31 |   |   |   | 177 |   |
| Customer related derivative contracts:                        |                     |   |               |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps with customers                            | Other assets             |   |               | 1,704                 |   |   |   | 1,413 |   |   |   |   |   | – |   |   |   | – |   |
| Mirror swaps with counterparties                              |                     |   |               |                  |   |   |   |   |   |   | Accrued expenses |   |   |   |   |   |   |   |   |
|                                                          |                     |   |               | –               |   |   |   | – |   |   | & other liabilities |   |   | 1,691 |   |   |   | 1,479 |   |
| Interest rate risk management contract:                       |                     |   |               |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap                                            |                     |   |               |                  |   |   |   |   |   |   | Accrued expenses |   |   |   |   |   |   |   |   |
|                                                          |                     |   |               | –               |   |   |   | – |   |   | & other liabilities |   |   | – |   |   |   | 601 |   |
| Total                                                         |                     |   | $                  | 2,068                 |   |   | $ | 1,583 |   |   |   |   | $ | 2,336 |   |   | $ | 2,275 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                          |                | Location of Gain     |                  |
|-------------------------------------------------|---------------------|----------------------|-----------------------|
|                                            | Gain (Loss)         | (Loss) Recognized in |                  |
|                                            | Recognized in Other | Income on Derivative | Gain Recognized       |
|                                            | Comprehensive       | (Ineffective Portion | in Income             |
|                                            | Income              | and Amount           | on Derivative         |
|                                            | (Effective Portion) | Excluded from        | (Ineffective Portion) |
| Years ended Dec. 31,                       | 2009                | 2008                 | 2007                  | Effectiveness Testing) | 2009 | 2008 | 2007 |
| Derivatives in cash flow hedging relationships: |                |                 |                  |   |   |   |   |
| Interest rate risk management contract:         |                |                 |                  |   |   |   |   |
| Interest rate swap (1)                          | $(7)                | $30                  | $  –  | Interest Expense | $78 | $  – | $  – |
| Total                                           | $(7)                | $30                  | $  –  |   | $78 | $  – | $  – |

| (1)   | In addition to the amounts reported in the table above, a $30 thousand gain was reclassified from accumulated other comprehensive income into net unrealized gains on interest rate swaps in the first quarter of 2009. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars in thousands)                                             |   | Location of Gain                                                         |   | Amount of Gain (Loss)              |   |
|--------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                               |   | (Loss) Recognized in                                                     |   | Recognized in Income on Derivative |   |
| Years ended December 31,                                      |   | Income on Derivative                                                     |   | 2009                               |   |   | 2008 |   |   | 2007 |   |
| Derivatives not designated as hedging instruments:                 |   |                                                                     |   |                               |   |   |   |   |   |   |   |
| Forward loan commitments:                                          |   |                                                                     |   |                               |   |   |   |   |   |   |   |
| Commitments to originate fixed rate mortgage loans to be sold |   | Net gains on loan sales & commissions on loans originated for others |   | $                                  | (325   | ) |   | $ | 132 |   |   | $ | (199 | ) |
| Commitments to sell fixed rate mortgage loans                      |   | Net gains on loan sales & commissions on loans originated for others |   |                               | 503    |   |   |   | (155 | ) |   |   | 189 |   |
| Customer related derivative contracts:                             |   |                                                                     |   |                               |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps with customers                                 |   | Net gains (losses) on interest rate swaps                                |   |                               | 1,130  |   |   |   | (603 | ) |   |   | 60 |   |
| Mirror swaps with counterparties                                   |   | Net gains (losses) on interest rate swaps                                |   |                               | (550   | ) |   |   | 700 |   |   |   | (33 | ) |
| Interest rate risk management contract:                            |   |                                                                     |   |                               |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap                                                 |   | Net gains (losses) on interest rate swaps                                |   |                               | 117    |   |   |   | (639 | ) |   |   | – |   |
| Total                                                              |   |                                                                     |   | $                                  | 875    |   |   | $ | (565 | ) |   | $ | 17 |   |

| ·   | Level 1 – Quoted prices for identical assets or liabilities in active markets. |
|--------------------|--------------------------------------------------------------------------------------|

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| ·   | Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in the markets and which reflect the Corporation’s market assumptions |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                               |   |                          |    |   | Assets/        |   |
|------------------------------------------------------|--------|-------------------------------|---------|--------|----------------|--------|
|                                                 |   | Fair Value Measurements Using |    |   | Liabilities at |   |
| December 31, 2009                               |   | Level 1                       |    |   | Level 2        |   |   | Level 3 |   |   | Fair Value |   |
| Assets:                                              |   |                          |    |   |           |   |   |   |   |   |   |   |
| Securities available for sale:                       |   |                          |    |   |           |   |   |   |   |   |   |   |
| Obligations of U.S. government-sponsored enterprises |   | $                             | – |   |           | $      | 45,240 |   |   | $ | – |   |   | $ | 45,240 |   |
| Mortgage-backed securities issued by U.S. government |   |                          |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| agencies and U.S. government-sponsored enterprises   |   |                          | – |   |           |   | 523,446 |   |   |   | – |   |   |   | 523,446 |   |
| States and political subdivisions                    |   |                          | – |   |           |   | 82,062 |   |   |   | – |   |   |   | 82,062 |   |
| Trust preferred securities:                          |   |                          |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Individual name issuers                              |   |                          | – |   |           |   | 20,586 |   |   |   | – |   |   |   | 20,586 |   |
| Collateralized debt obligations                      |   |                          | – |   |           |   | – |   |   |   | 1,065 |   |   |   | 1,065 |   |
| Corporate bonds                                      |   |                          | – |   |           |   | 14,706 |   |   |   | – |   |   |   | 14,706 |   |
| Common stocks                                        |   |                          | 769     |   |           |   | – |   |   |   | – |   |   |   | 769 |   |
| Perpetual preferred stocks                           |   |                          | 3,183   |   |           |   | 427 |   |   |   | – |   |   |   | 3,610 |   |
| Derivative assets (1)                                |   |                          | – |   |           |   | 1,704 |   |   |   | 364 |   |   |   | 2,068 |   |
| Total assets at fair value on a recurring basis      |   | $                             | 3,952   |   |           | $      | 688,171 |   |   | $ | 1,429 |   |   | $ | 693,552 |   |
| Liabilities:                                         |   |                          |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Derivative liabilities (1)                           |   | $                             | – |   |           | $      | 2,125 |   |   | $ | 211 |   |   | $ | 2,336 |   |
| Total liabilities at fair value on a recurring basis |   | $                             | – |   |           | $      | 2,125 |   |   | $ | 211 |   |   | $ | 2,336 |   |

| (1)   | Derivative assets are included in other assets and derivative liabilities are reported in accrued expenses and other liabilities in the Consolidated Balance Sheets. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                               |   |                          |    |   | Assets/        |   |
|------------------------------------------------------|--------|-------------------------------|---------|--------|----------------|--------|
|                                                 |   | Fair Value Measurements Using |    |   | Liabilities at |   |
| December 31, 2008                               |   | Level 1                       |    |   | Level 2        |   |   | Level 3 |   |   | Fair Value |   |
| Assets:                                              |   |                          |    |   |           |   |   |   |   |   |   |   |
| Securities available for sale:                       |   |                          |    |   |           |   |   |   |   |   |   |   |
| Obligations of U.S. government-sponsored enterprises |   | $                             | – |   |           | $      | 64,377 |   |   | $ | – |   |   | $ | 64,377 |   |
| Mortgage-backed securities issued by U.S. government |   |                          |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| agencies and U.S. government-sponsored enterprises   |   |                          | – |   |           |   | 683,619 |   |   |   | – |   |   |   | 683,619 |   |
| States and political subdivisions                    |   |                          | – |   |           |   | 81,213 |   |   |   | – |   |   |   | 81,213 |   |
| Trust preferred securities:                          |   |                          |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Individual name issuers                              |   |                          | – |   |           |   | 16,793 |   |   |   | – |   |   |   | 16,793 |   |
| Collateralized debt obligations                      |   |                          | – |   |           |   | – |   |   |   | 1,940 |   |   |   | 1,940 |   |
| Corporate bonds                                      |   |                          | – |   |           |   | 13,576 |   |   |   | – |   |   |   | 13,576 |   |
| Common stocks                                        |   |                          | 992     |   |           |   | – |   |   |   | – |   |   |   | 992 |   |
| Perpetual preferred stocks                           |   |                          | 3,208   |   |           |   | 501 |   |   |   | – |   |   |   | 3,709 |   |
| Derivative assets (1)                                |   |                          | – |   |           |   | 1,413 |   |   |   | 170 |   |   |   | 1,583 |   |
| Total assets at fair value on a recurring basis      |   | $                             | 4,200   |   |           | $      | 861,492 |   |   | $ | 2,110 |   |   | $ | 867,802 |   |
| Liabilities:                                         |   |                          |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Derivative liabilities (1)                           |   | $                             | – |   |           | $      | 2,080 |   |   | $ | 195 |   |   | $ | 2,275 |   |
| Total liabilities at fair value on a recurring basis |   | $                             | – |   |           | $      | 2,080 |   |   | $ | 195 |   |   | $ | 2,275 |   |

| (1)   | Derivatives assets are included in other assets and derivative liabilities are reported in accrued expenses and other liabilities in the Consolidated Balance Sheets. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Years ended December 31,               |   | 2009         |    |   |          | 2008   |    |
|---------------------------------------------|--------|--------------|---------|--------|---------------|--------|---------|
|                                        |   | Securities   |    |   | Derivative    |   |    |   |   |   |   | Securities |   |   | Derivative |   |   |   |   |
|                                        |   | Available    |    |   | Assets /      |   |    |   |   |   |   | Available |   |   | Assets / |   |   |   |   |
| (Dollars in thousands)                      |   | for Sale (1) |    |   | (Liabilities) |   |    | Total |   |   |   | for Sale |   |   | (Liabilities) |   |   | Total |   |
| Balance at beginning of period              |   | $            | 1,940   |   |          | $      | (25     | ) |   | $ | 1,915 |   |   |   | $ | – |   |   | $ | (2 | ) |   | $ | (2 | ) |
| Gains and losses (realized and unrealized): |   |         |    |   |          |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included in earnings (2)                    |   |         | (2,496  | )      |          |   | 178     |   |   |   | (2,318 | ) |   |   |   | (1,859 | ) |   |   | (23 | ) |   |   | (1,882 | ) |
| Included in other comprehensive income      |   |         | 1,621   |   |          |   | – |   |   |   | 1,621 |   |   |   |   | (1,949 | ) |   |   | – |   |   |   | (1,949 | ) |
| Purchases, issuances and settlements (net)  |   |         | – |   |          |   | – |   |   |   | – |   |   |   |   | 13 |   |   |   | – |   |   |   | 13 |   |
| Transfers in and/or out of Level 3          |   |         | – |   |          |   | – |   |   |   | – |   |   |   |   | 5,735 |   |   |   | – |   |   |   | 5,735 |   |
| Balance at end of period                    |   | $            | 1,065   |   |          | $      | 153     |   |   | $ | 1,218 |   |   |   | $ | 1,940 |   |   | $ | (25 | ) |   | $ | 1,915 |   |

| (1)   | During the periods indicated, Level 3 securities available for sale were comprised of two pooled trust preferred debt securities, in the form of collateralized debt obligations. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Losses included in earnings for Level 3 securities available for sale consisted of credit-related impairment losses on the two Level 3 pooled trust preferred debt securities.  Credit-related impairment losses of $2.5 million and $1.9 million were recognized in 2009 and 2008, respectively.  See Note 4 for additionaldisclosure regarding the reclassification of the 2008 impairment losses.  The losses included in earnings for Level 3 derivative assets and liabilities, which were comprised of interest rate lock commitments written for our residential mortgage loans that we intend to sell, were included in net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                                |   | Carrying Value at December 31, 2009 |    |
|-------------------------------------------------------|--------|------------------------------------------|---------|
|                                                  |   | Level 1                                  |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                                               |   |                                     |    |   |   |   |   |   |   |   |   |   |
| Collateral dependent impaired loans                   |   | $                                        | – |   |   | $ | 2,026 |   |   | $ | 11,560 |   |   | $ | 13,586 |   |
| Property acquired through foreclosure or repossession |   |                                     | – |   |   |   | – |   |   |   | 1,974 |   |   |   | 1,974 |   |
| Total assets at fair value on a nonrecurring basis    |   | $                                        | – |   |   | $ | 2,026 |   |   | $ | 13,534 |   |   | $ | 15,560 |   |

| (Dollars in thousands)                             |   | Carrying Value at December 31, 2008 |    |
|----------------------------------------------------|--------|-------------------------------------|---------|
|                                               |   | Level 1                             |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                                            |   |                                |    |   |   |   |   |   |   |   |   |   |
| Collateral dependent impaired loans                |   | $                                   | – |   |   | $ | 3,396 |   |   | $ | – |   |   | $ | 3,396 |   |
| Loan servicing rights                              |   |                                | – |   |   |   | – |   |   |   | 385 |   |   |   | 385 |   |
| Total assets at fair value on a nonrecurring basis |   | $                                   | – |   |   | $ | 3,396 |   |   | $ | 385 |   |   | $ | 3,781 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| December 31,                                  |   | 2009     |      |   | 2008       |   |
|-----------------------------------------------|--------|----------|-----------|--------|------------|--------|
|                                          |   | Carrying |      |   | Estimated  |   |   | Carrying |   |   | Estimated |   |
| (Dollars in thousands)                        |   | Amount   |      |   | Fair Value |   |   | Amount |   |   | Fair Value |   |
| Financial Assets:                             |   |     |      |   |       |   |   |   |   |   |   |   |
| Cash and cash equivalents                     |   | $        | 57,260    |   |       | $      | 57,260 |   |   | $ | 58,190 |   |   | $ | 58,190 |   |
| Mortgage loans held for sale                  |   |     | 9,909     |   |       |   | 10,107 |   |   |   | 2,543 |   |   |   | 2,604 |   |
| Securities available for sale                 |   |     | 691,484   |   |       |   | 691,484 |   |   |   | 866,219 |   |   |   | 866,219 |   |
| FHLBB stock                                   |   |     | 42,008    |   |       |   | 42,008 |   |   |   | 42,008 |   |   |   | 42,008 |   |
| Loans, net of allowance for loan losses       |   |     | 1,892,268 |   |       |   | 1,936,997 |   |   |   | 1,815,429 |   |   |   | 1,857,433 |   |
| Accrued interest receivable                   |   |     | 9,137     |   |       |   | 9,137 |   |   |   | 10,980 |   |   |   | 10,980 |   |
| Bank-owned life insurance                     |   |     | 44,957    |   |       |   | 44,957 |   |   |   | 43,163 |   |   |   | 43,163 |   |
| Customer related interest rate swap contracts |   |     | 1,704     |   |       |   | 1,704 |   |   |   | 1,413 |   |   |   | 1,413 |   |
| Forward loan commitments (1)                  |   |     | 364       |   |       |   | 364 |   |   |   | 170 |   |   |   | 170 |   |
|                                          |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:                        |   |     |      |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits           |   | $        | 194,046   |   |       | $      | 194,046 |   |   | $ | 172,771 |   |   | $ | 172,771 |   |
| NOW accounts                                  |   |     | 202,367   |   |       |   | 202,367 |   |   |   | 171,306 |   |   |   | 171,306 |   |
| Money market accounts                         |   |     | 403,333   |   |       |   | 403,333 |   |   |   | 305,879 |   |   |   | 305,879 |   |
| Savings accounts                              |   |     | 191,580   |   |       |   | 191,580 |   |   |   | 173,485 |   |   |   | 173,485 |   |
| Time deposits                                 |   |     | 931,684   |   |       |   | 941,090 |   |   |   | 967,427 |   |   |   | 975,255 |   |
| FHLBB advances                                |   |     | 607,328   |   |       |   | 638,269 |   |   |   | 829,626 |   |   |   | 863,884 |   |
| Junior subordinated debentures                |   |     | 32,991    |   |       |   | 20,126 |   |   |   | 32,991 |   |   |   | 17,386 |   |
| Securities sold under repurchase agreements   |   |     | 19,500    |   |       |   | 21,041 |   |   |   | 19,500 |   |   |   | 21,310 |   |
| Other borrowings                              |   |     | 2,001     |   |       |   | 2,001 |   |   |   | 7,243 |   |   |   | 7,243 |   |
| Accrued interest payable                      |   |     | 5,818     |   |       |   | 5,818 |   |   |   | 7,995 |   |   |   | 7,995 |   |
| Customer related interest rate swap contracts |   |     | 1,691     |   |       |   | 1,691 |   |   |   | 1,479 |   |   |   | 1,479 |   |
| Interest rate risk management contract        |   |     | 434       |   |       |   | 434 |   |   |   | 601 |   |   |   | 601 |   |
| Forward loan commitments (1)                  |   |     | 211       |   |       |   | 211 |   |   |   | 195 |   |   |   | 195 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                           |   | Qualified    |    |   | Non-Qualified    |   |
|--------------------------------------------------|--------|--------------|---------|--------|------------------|--------|
|                                             |   | Pension Plan |    |   | Retirement Plans |   |
| At December 31,                                  |   | 2009         |    |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Change in Benefit Obligation:                    |   |         |    |   |             |   |   |   |   |   |   |   |
| Benefit obligation at beginning of period        |   | $            | 39,529  |   |             | $      | 33,028 |   |   | $ | 9,581 |   |   | $ | 9,223 |   |
| Service cost                                     |   |         | 2,371   |   |             |   | 2,046 |   |   |   | 106 |   |   |   | 250 |   |
| Interest cost                                    |   |         | 2,292   |   |             |   | 2,027 |   |   |   | 564 |   |   |   | 571 |   |
| Adjustment for change in measurement date        |   |         | -       |   |             |   | 771 |   |   |   | - |   |   |   | 121 |   |
| Actuarial (gain) loss                            |   |         | (679    | )      |             |   | 2,645 |   |   |   | (105 | ) |   |   | (249 | ) |
| Benefits paid                                    |   |         | (977    | )      |             |   | (878 | ) |   |   | (341 | ) |   |   | (335 | ) |
| Administrative expenses                          |   |         | (122    | )      |             |   | (110 | ) |   |   | - |   |   |   | - |   |
| Curtailment loss                                 |   |         | -       |   |             |   | - |   |   |   | (309 | ) |   |   | - |   |
| Benefit obligation at end of period              |   | $            | 42,414  |   |             | $      | 39,529 |   |   | $ | 9,496 |   |   | $ | 9,581 |   |
| Change in Plan Assets:                           |   |         |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of plan assets at beginning of period |   | $            | 24,527  |   |             | $      | 30,450 |   |   | $ | - |   |   | $ | - |   |
| Actual return (loss) on plan assets              |   |         | 5,418   |   |             |   | (5,350 | ) |   |   | - |   |   |   | - |   |
| Employer contribution                            |   |         | 2,100   |   |             |   | 2,000 |   |   |   | 91 |   |   |   | 335 |   |
| Benefits paid                                    |   |         | (977    | )      |             |   | (878 | ) |   |   | (91 | ) |   |   | (335 | ) |
| Administrative expenses                          |   |         | (122    | )      |             |   | (110 | ) |   |   | - |   |   |   | - |   |
| Adjustment for change in measurement date        |   |         | -       |   |             |   | (1,585 | ) |   |   | - |   |   |   | - |   |
| Fair value of plan assets at end of period       |   | $            | 30,946  |   |             | $      | 24,527 |   |   | $ | - |   |   | $ | - |   |
| Funded status at end of period                   |   | $            | (11,468 | )      |             | $      | (15,002 | ) |   | $ | (9,496 | ) |   | $ | (9,581 | ) |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                 |   | Qualified    |   |   | Non-Qualified    |   |
|----------------------------------------|--------|--------------|--------|--------|------------------|--------|
|                                   |   | Pension Plan |   |   | Retirement Plans |   |
| At December 31,                        |   | 2009         |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Net actuarial loss                     |   | $            | 8,082  |   |             | $      | 12,031 |   |   | $ | 838 |   |   | $ | 1,280 |   |
| Prior service (credit) cost            |   |         | (321   | )      |             |   | (353 | ) |   |   | 1 |   |   |   | 125 |   |
| Total pre-tax amounts recognized in    |   |         |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| accumulated other comprehensive income |   | $            | 7,761  |   |             | $      | 11,678 |   |   | $ | 839 |   |   | $ | 1,405 |   |

| (Dollars in thousands)         |   | Non-Qualified    |   |
|--------------------------------|--------|------------------|--------|
|                           |   | Retirement Plans |   |
| December 31,                   |   | 2009             |   |   | 2008 |   |
| Projected benefit obligation   |   | $                | 9,496  |   |   | $ | 9,581 |   |
| Accumulated benefit obligation |   |             | 9,090  |   |   |   | 8,361 |   |
| Fair value of plan assets      |   |             | -      |   |   |   | - |   |

| (Dollars in thousands)                      |   | Qualified    |    |   | Non-Qualified    |   |
|---------------------------------------------|--------|--------------|---------|--------|------------------|--------|
|                                        |   | Pension Plan |    |   | Retirement Plans |   |
| Years ended December 31,                    |   | 2009         |    |   | 2008             |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Net Periodic Benefit Cost:                  |   |         |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service cost                                |   | $            | 2,371   |   |             | $      | 2,046 |   |   | $ | 2,010 |   |   | $ | 106 |   |   | $ | 250 |   |   | $ | 345 |   |
| Interest cost                               |   |         | 2,292   |   |             |   | 2,027 |   |   |   | 1,848 |   |   |   | 564 |   |   |   | 571 |   |   |   | 519 |   |
| Expected return on plan assets              |   |         | (2,451  | )      |             |   | (2,276 | ) |   |   | (1,984 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of transition asset            |   |         | -       |   |             |   | (1 | ) |   |   | (6 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of prior service (credit) cost |   |         | (33     | )      |             |   | (33 | ) |   |   | (33 | ) |   |   | 27 |   |   |   | 63 |   |   |   | 63 |   |
| Recognized net actuarial loss               |   |         | 303     |   |             |   | 15 |   |   |   | 187 |   |   |   | 28 |   |   |   | 217 |   |   |   | 218 |   |
| Curtailment loss                            |   |         | -       |   |             |   | - |   |   |   | - |   |   |   | 97 |   |   |   | - |   |   |   | - |   |
| Net periodic benefit cost                   |   | $            | 2,482   |   |             | $      | 1,778 |   |   | $ | 2,022 |   |   | $ | 822 |   |   | $ | 1,101 |   |   | $ | 1,144 |   |
| Other Changes in Plan Assets and            |   |         |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Benefit Obligations Recognized in Other     |   |         |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income (on a pre-tax basis):  |   |         |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (gain) loss                             |   | $            | (3,949  | )      |             | $      | 12,160 |   |   | $ | (3,735 | ) |   | $ | (133 | ) |   | $ | (605 | ) |   | $ | (468 | ) |
| Prior service cost (credit)                 |   |         | 33      |   |             |   | 41 |   |   |   | 33 |   |   |   | (27 | ) |   |   | (78 | ) |   |   | (63 | ) |
| Net transition asset                        |   |         | – |   |             |   | 1 |   |   |   | 6 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Curtailment loss                            |   |         | – |   |             |   |   |   |   |   |   |   |   |   | (406 | ) |   |   |   |   |   |   |   |   |
| Recognized in other comprehensive income    |   | $            | (3,916  | )      |             | $      | 12,202 |   |   | $ | (3,696 | ) |   | $ | (566 | ) |   | $ | (683 | ) |   | $ | (531 | ) |
| Total recognized in net periodic benefit    |   |         |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| cost and other comprehensive income         |   | $            | (1,434  | )      |             | $      | 13,980 |   |   | $ | (1,674 | ) |   | $ | 256 |   |   | $ | 418 |   |   | $ | 613 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

|                          | Qualified Pension Plan | Non-Qualified Retirement Plans |
|-------------------------------|------------------------|--------------------------------|
|                          | 2009                   | 2008                           | 2009 | 2008 |
| Measurement date              | Dec. 31, 2009          | Dec. 31, 2008                  | Dec. 31, 2009 | Dec. 31, 2008 |
| Discount rate                 | 6.00%                  | 5.875%                         | 5.50% | 6.25% |
| Rate of compensation increase | 4.25%                  | 4.25%                          | 4.25% | 4.25% |

|                              | Qualified Pension Plan | Non-Qualified Retirement Plans |
|-----------------------------------|------------------------|--------------------------------|
|                              | 2009                   | 2008                           | 2007 | 2009 | 2008 | 2007 |
| Measurement date                  | Dec. 31, 2008          | Sept. 30, 2007                 | Sept. 30, 2006 | Dec. 31, 2008 | Sept. 30, 2007 | Sept. 30, 2006 |
| Discount rate                     | 5.875%                 | 6.25%                          | 5.90% | 6.125% | 6.25% | 5.90% |
| Expected long-term                |                   |                           |   |   |   |   |
|   return on plan assets | 8.25%                  | 8.25%                          | 8.25% | - | - | - |
| Rate of compensation              |                   |                           |   |   |   |   |
|   increase              | 4.25%                  | 4.25%                          | 4.25% | 4.25% | 4.25% | 4.25% |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                               |   |                          |    |   |      |   |
|------------------------------------------------------|--------|-------------------------------|---------|--------|-----------|--------|
|                                                 |   | Fair Value Measurements Using |    |   | Assets at |   |
| December 31, 2009                               |   | Level 1                       |    |   | Level 2   |   |   | Level 3 |   |   | Fair Value |   |
| Assets:                                              |   |                          |    |   |      |   |   |   |   |   |   |   |
| Cash and cash equivalents                            |   | $                             | 1,284   |   |      | $      | – |   |   | $ | – |   |   | $ | 1,284 |   |
| Obligations of U.S. government agencies              |   |                          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| and U.S. government-sponsored enterprises            |   |                          | – |   |      |   | 2,214 |   |   |   | – |   |   |   | 2,214 |   |
| Mortgage-backed securities issued by U.S. government |   |                          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| agencies and U.S. government-sponsored enterprises   |   |                          | – |   |      |   | 1 |   |   |   | – |   |   |   | 1 |   |
| Corporate bonds                                      |   |                          | – |   |      |   | 8,937 |   |   |   | – |   |   |   | 8,937 |   |
| Common stocks                                        |   |                          | 12,198  |   |      |   | – |   |   |   | – |   |   |   | 12,198 |   |
| Mutual funds                                         |   |                          | 6,312   |   |      |   | – |   |   |   | – |   |   |   | 6,312 |   |
| Total plan assets                                    |   | $                             | 19,794  |   |      | $      | 11,152 |   |   | $ | – |   |   | $ | 30,946 |   |

| (Dollars in thousands)                               |   |                          |    |   |      |   |
|------------------------------------------------------|--------|-------------------------------|---------|--------|-----------|--------|
|                                                 |   | Fair Value Measurements Using |    |   | Assets at |   |
| December 31, 2008                               |   | Level 1                       |    |   | Level 2   |   |   | Level 3 |   |   | Fair Value |   |
| Assets:                                              |   |                          |    |   |      |   |   |   |   |   |   |   |
| Cash and cash equivalents                            |   | $                             | 2,763   |   |      | $      | – |   |   | $ | – |   |   | $ | 2,763 |   |
| Obligations of U.S. government agencies              |   |                          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| and U.S. government-sponsored enterprises            |   |                          | – |   |      |   | 1,083 |   |   |   | – |   |   |   | 1,083 |   |
| Mortgage-backed securities issued by U.S. government |   |                          |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| agencies and U.S. government-sponsored enterprises   |   |                          | – |   |      |   | 1 |   |   |   | – |   |   |   | 1 |   |
| Corporate bonds                                      |   |                          | – |   |      |   | 7,891 |   |   |   | – |   |   |   | 7,891 |   |
| Common stocks                                        |   |                          | 8,252   |   |      |   | – |   |   |   | – |   |   |   | 8,252 |   |
| Mutual funds                                         |   |                          | 4,537   |   |      |   | – |   |   |   | – |   |   |   | 4,537 |   |
| Total plan assets                                    |   | $                             | 15,552  |   |      | $      | 8,975 |   |   | $ | – |   |   | $ | 24,527 |   |

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| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| December 31,      |   | 2009   |   |   | 2008   |   |
|-------------------|--------|--------|--------|--------|--------|--------|
| Asset Category:   |   |   |   |   |   |   |
| Equity securities |   |   | 59.8   | %      |   |   | 52.1 | % |
| Debt securities   |   |   | 36.0   | %      |   |   | 36.6 | % |
| Other             |   |   | 4.2    | %      |   |   | 11.3 | % |
| Total             |   |   | 100.0  | %      |   |   | 100.0 | % |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands) |   | QualifiedPension Plan |   |   | Non-QualifiedPlans |   |
|------------------------|--------|-----------------------|--------|--------|--------------------|--------|
| 2010                   |   | $                     | 1,278  |   |               | $      | 667 |   |
| 2011                   |   |                  | 1,425  |   |               |   | 727 |   |
| 2012                   |   |                  | 1,544  |   |               |   | 727 |   |
| 2013                   |   |                  | 1,808  |   |               |   | 734 |   |
| 2014                   |   |                  | 1,948  |   |               |   | 735 |   |
| Years 2015 - 2019      |   |                  | 12,209 |   |               |   | 3,732 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)           |   |   |   |   |   |   |   |   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                             |   |   |   |   |   |   |   |   |   |
| Years ended December 31,    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Share-based compensation expense |   | $      | 708    |   |   | $      | 630    |   |   | $ | 508 |   |
| Related income tax benefit       |   | $      | 252    |   |   | $      | 225    |   |   | $ | 178 |   |

|                                     |   | 2009   |    |   | 2008   |   |
|------------------------------------------|--------|--------|---------|--------|--------|--------|
| Expected term (years)                    |   |   | 6.7     |   |   |   | 9.0 |   |
| Expected dividend yield                  |   |   | 3.05    | %      |   |   | 2.86 | % |
| Weighted average expected volatility     |   |   | 44.26   |   |   |   | 33.75 |   |
| Expected forfeiture rate                 |   |   | – |   |   |   | – |   |
| Weighted average risk-free interest rate |   |   | 3.28    | %      |   |   | 4.51 | % |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                                |   | Number  |    |   | Weighted |   |   | Weighted Average |   |      |      |   |
|-------------------------------------------------------|--------|---------|---------|--------|----------|--------|--------|------------------|--------|-----------|-----------|--------|
|                                                  |   | of      |    |   | Average  |   |   | Remaining        |   |      | Aggregate |   |
|                                                  |   | Share   |    |   | Exercise |   |   | Contractual      |   |      | Intrinsic |   |
|                                                  |   | Options |    |   | Price    |   |   | Term (Years)     |   |      | Value     |   |
| Outstanding at January 1, 2009                        |   |    | 987,418 |   |     | $      | 21.60  |             |   |      | –   |   |   |   | – |   |
| Granted                                               |   |    | 21,000  |   |     |   | 17.91  |             |   |      | –   |   |   |   | – |   |
| Exercised                                             |   |    | 64,648  |   |     |   | 16.79  |             |   |      | –   |   |   |   | – |   |
| Forfeited or expired                                  |   |    | 42,211  |   |     |   | 19.12  |             |   |      | –   |   |   |   | – |   |
| Outstanding at December 31, 2009                 |   |    | 901,559 |   |     | $      | 21.98  |             |   | 3.9 years |      |   | $ | 24 |   |
| Exercisable at December 31, 2009                 |   |    | 786,177 |   |     | $      | 21.87  |             |   | 3.2 years |      |   | $ | 24 |   |
| Options expected to vest as of December 31, 2009 |   |    | 115,382 |   |     | $      | 22.70  |             |   | 8.7 years |      |   | $ | – |   |

|                                |   |   |    |   | Weighted   |   |
|-------------------------------------|--------|--------|---------|--------|------------|--------|
|                                |   | Number |    |   | Average    |   |
|                                |   | of     |    |   | Grant Date |   |
|                                |   | Shares |    |   | Fair Value |   |
| Nonvested at January 1, 2009        |   |   | 57,557  |   |       | $      | 24.97 |   |
| Granted                             |   |   | 7,000   |   |       |   | 17.91 |   |
| Vested                              |   |   | (18,108 | )      |       |   | 26.41 |   |
| Forfeited                           |   |   | (2,842  | )      |       |   | 24.14 |   |
| Nonvested at December 31, 2009 |   |   | 43,607  |   |       | $      | 23.30 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

|                                         |   |   |    |   | Weighted   |   |
|----------------------------------------------|--------|--------|---------|--------|------------|--------|
|                                         |   | Number |    |   | Average    |   |
|                                         |   | of     |    |   | Grant Date |   |
|                                         |   | Shares |    |   | Fair Value |   |
| Performance shares at January 1, 2009        |   |   | 16,930  |   |       | $      | 24.12 |   |
| Granted                                      |   |   | – |   |       |   | – |   |
| Vested                                       |   |   | (3,132  | )      |       |   | 24.12 |   |
| Forfeited                                    |   |   | (6,566  | )      |       |   | 24.12 |   |
| Performance shares at December 31, 2009 |   |   | 7,232   |   |       | $      | 24.12 |   |

|  (Dollars in thousands)          |   |       |      |   | Wealth     |   |    |      |   |   |         |   |
|---------------------------------------|--------|------------|-----------|--------|------------|--------|---------|-----------|--------|--------|--------------|--------|
|                                  |   | Commercial |      |   | Management |   |    |      |   |   | Consolidated |   |
| Year ended December 31, 2009     |   | Banking    |      |   | Services   |   |    | Corporate |   |   | Total        |   |
| Net interest income (expense)         |   | $          | 64,627    |   |       | $      | (76     | )         |   | $      | 1,341        |   |   | $ | 65,892 |   |
| Noninterest income (expense)          |   |       | 19,160    |   |       |   | 23,786  |      |   |   | (728         | )      |   |   | 42,218 |   |
| Total income                          |   |       | 83,787    |   |       |   | 23,710  |      |   |   | 613          |   |   |   | 108,110 |   |
|                                  |   |       |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Provision for loan losses             |   |       | 8,500     |   |       |   | – |      |   |   | –      |   |   |   | 8,500 |   |
| Depreciation and amortization expense |   |       | 2,495     |   |       |   | 1,669   |      |   |   | 158          |   |   |   | 4,322 |   |
| Other noninterest expenses            |   |       | 46,447    |   |       |   | 17,324  |      |   |   | 9,075        |   |   |   | 72,846 |   |
| Total noninterest expenses            |   |       | 57,442    |   |       |   | 18,993  |      |   |   | 9,233        |   |   |   | 85,668 |   |
| Income (loss) before income taxes     |   |       | 26,345    |   |       |   | 4,717   |      |   |   | (8,620       | )      |   |   | 22,442 |   |
| Income tax expense (benefit)          |   |       | 9,307     |   |       |   | 1,715   |      |   |   | (4,676       | )      |   |   | 6,346 |   |
| Net income (loss)                     |   | $          | 17,038    |   |       | $      | 3,002   |      |   | $      | (3,944       | )      |   | $ | 16,096 |   |
|                                  |   |       |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Total assets at period end            |   | $          | 2,017,616 |   |       | $      | 51,742  |      |   | $      | 815,115      |   |   | $ | 2,884,473 |   |
| Expenditures for long-lived assets    |   | $          | 4,307     |   |       | $      | 957     |      |   | $      | 271          |   |   | $ | 5,535 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands)                |   |       |      |   | Wealth     |   |    |      |   |   |         |   |
|---------------------------------------|--------|------------|-----------|--------|------------|--------|---------|-----------|--------|--------|--------------|--------|
|                                  |   | Commercial |      |   | Management |   |    |      |   |   | Consolidated |   |
| Year ended December 31, 2008     |   | Banking    |      |   | Services   |   |    | Corporate |   |   | Total        |   |
| Net interest income (expense)         |   | $          | 62,651    |   |       | $      | (27     | )         |   | $      | 2,889        |   |   | $ | 65,513 |   |
| Noninterest income (expense)          |   |       | 14,457    |   |       |   | 28,273  |      |   |   | (2,210       | )      |   |   | 40,520 |   |
| Total income                          |   |       | 77,108    |   |       |   | 28,246  |      |   |   | 679          |   |   |   | 106,033 |   |
|                                  |   |       |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Provision for loan losses             |   |       | 4,800     |   |       |   | – |      |   |   | –      |   |   |   | 4,800 |   |
| Depreciation and amortization expense |   |       | 2,506     |   |       |   | 1,640   |      |   |   | 178          |   |   |   | 4,324 |   |
| Other noninterest expenses            |   |       | 40,340    |   |       |   | 18,456  |      |   |   | 8,622        |   |   |   | 67,418 |   |
| Total noninterest expenses            |   |       | 47,646    |   |       |   | 20,096  |      |   |   | 8,800        |   |   |   | 76,542 |   |
| Income (loss) before income taxes     |   |       | 29,462    |   |       |   | 8,150   |      |   |   | (8,121       | )      |   |   | 29,491 |   |
| Income tax expense (benefit)          |   |       | 10,309    |   |       |   | 3,237   |      |   |   | (6,227       | )      |   |   | 7,319 |   |
| Net income (loss)                     |   | $          | 19,153    |   |       | $      | 4,913   |      |   | $      | (1,894       | )      |   | $ | 22,172 |   |
|                                  |   |       |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Total assets at period end            |   | $          | 1,895,436 |   |       | $      | 53,096  |      |   | $      | 1,016,934    |   |   | $ | 2,965,466 |   |
| Expenditures for long-lived assets    |   | $          | 3,596     |   |       | $      | 389     |      |   | $      | 198          |   |   | $ | 4,183 |   |

| (Dollars in thousands)                |   |       |      |   | Wealth     |   |    |      |   |   |         |   |
|---------------------------------------|--------|------------|-----------|--------|------------|--------|---------|-----------|--------|--------|--------------|--------|
|                                  |   | Commercial |      |   | Management |   |    |      |   |   | Consolidated |   |
| Year ended December 31, 2007     |   | Banking    |      |   | Services   |   |    | Corporate |   |   | Total        |   |
| Net interest income (expense)         |   | $          | 53,927    |   |       | $      | (61     | )         |   | $      | 6,078        |   |   | $ | 59,944 |   |
| Noninterest income                    |   |       | 14,263    |   |       |   | 29,016  |      |   |   | 2,230        |   |   |   | 45,509 |   |
| Total income                          |   |       | 68,190    |   |       |   | 28,955  |      |   |   | 8,308        |   |   |   | 105,453 |   |
|                                  |   |       |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Provision for loan losses             |   |       | 1,900     |   |       |   | – |      |   |   | –      |   |   |   | 1,900 |   |
| Depreciation and amortization expense |   |       | 2,454     |   |       |   | 1,703   |      |   |   | 177          |   |   |   | 4,334 |   |
| Other noninterest expenses            |   |       | 37,530    |   |       |   | 17,942  |      |   |   | 9,100        |   |   |   | 64,572 |   |
| Total noninterest expenses            |   |       | 41,884    |   |       |   | 19,645  |      |   |   | 9,277        |   |   |   | 70,806 |   |
| Income (loss) before income taxes     |   |       | 26,306    |   |       |   | 9,310   |      |   |   | (969         | )      |   |   | 34,647 |   |
| Income tax expense (benefit)          |   |       | 9,234     |   |       |   | 3,601   |      |   |   | (1,988       | )      |   |   | 10,847 |   |
| Net income                            |   | $          | 17,072    |   |       | $      | 5,709   |      |   | $      | 1,019        |   |   | $ | 23,800 |   |
|                                  |   |       |      |   |       |   |    |      |   |   |         |   |   |   |   |   |
| Total assets at period end            |   | $          | 1,643,200 |   |       | $      | 46,163  |      |   | $      | 850,577      |   |   | $ | 2,539,940 |   |
| Expenditures for long-lived assets    |   | $          | 3,658     |   |       | $      | 264     |      |   | $      | 200          |   |   | $ | 4,122 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| (Dollars in thousands, except per share amounts) |   |
|--------------------------------------------------|--------|
|                                             |   |
| Years ended December 31,                         |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                             |   | Basic |   |   | Diluted |   |   | Basic |   |   | Diluted |   |   | Basic |   |   | Diluted |   |
| Net income                                       |   | $ | 16,096 |   |   | $ | 16,096 |   |   | $ | 22,172 |   |   | $ | 22,172 |   |   | $ | 23,800 |   |   | $ | 23,800 |   |
| Share amounts, in thousands:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average outstanding                              |   |   | 15,994.9 |   |   |   | 15,994.9 |   |   |   | 13,981.9 |   |   |   | 13,981.9 |   |   |   | 13,355.5 |   |   |   | 13,355.5 |   |
| Common stock equivalents                         |   |   | – |   |   |   | 46.0 |   |   |   | – |   |   |   | 164.4 |   |   |   | – |   |   |   | 248.6 |   |
| Weighted average outstanding                     |   |   | 15,994.9 |   |   |   | 16,040.9 |   |   |   | 13,981.9 |   |   |   | 14,146.3 |   |   |   | 13,355.5 |   |   |   | 13,604.1 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share                               |   | $ | 1.01 |   |   | $ | 1.00 |   |   | $ | 1.59 |   |   | $ | 1.57 |   |   | $ | 1.78 |   |   | $ | 1.75 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| Balance Sheets                                                           |   | (Dollars in thousands, |    |
|--------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                     |   | except par value)      |    |
| December 31,                                                             |   | 2009                   |    |   | 2008 |   |
| Assets:                                                                  |   |                   |    |   |   |   |
| Cash on deposit with bank subsidiary                                     |   | $                      | 559     |   |   | $ | 803 |   |
| Interest-bearing balances due from banks                                 |   |                   | 610     |   |   |   | – |   |
| Investment in subsidiaries at equity value                               |   |                   | 286,785 |   |   |   | 270,076 |   |
| Dividends receivable from subsidiaries                                   |   |                   | 3,600   |   |   |   | 3,480 |   |
| Other assets                                                             |   |                   | 341     |   |   |   | 395 |   |
| Total assets                                                             |   | $                      | 291,895 |   |   | $ | 274,754 |   |
| Liabilities:                                                             |   |                   |    |   |   |   |   |   |
| Junior subordinated debentures                                           |   | $                      | 32,991  |   |   | $ | 32,991 |   |
| Deferred acquisition obligations                                         |   |                   | – |   |   |   | 2,506 |   |
| Dividends payable                                                        |   |                   | 3,369   |   |   |   | 3,351 |   |
| Accrued expenses and other liabilities                                   |   |                   | 589     |   |   |   | 795 |   |
| Total liabilities                                                        |   |                   | 36,949  |   |   |   | 39,643 |   |
| Shareholders’ Equity:                                              |   |                   |    |   |   |   |   |   |
| Common stock of $.0625 par value; authorized 30,000,000 shares;          |   |                   |    |   |   |   |   |   |
| issued 16,061,748 shares in 2009 and 16,018,868 shares in 2008           |   |                   | 1,004   |   |   |   | 1,001 |   |
| Paid-in capital                                                          |   |                   | 82,592  |   |   |   | 82,095 |   |
| Retained earnings                                                        |   |                   | 168,514 |   |   |   | 164,679 |   |
| Accumulated other comprehensive income (loss)                            |   |                   | 3,337   |   |   |   | (10,458 | ) |
| Treasury stock, at cost; 19,185 shares in 2009 and 84,191 shares in 2008 |   |                   | (501    | ) |   |   | (2,206 | ) |
| Total shareholders’ equity                                         |   |                   | 254,946 |   |   |   | 235,111 |   |
| Total liabilities and shareholders’ equity                         |   | $                      | 291,895 |   |   | $ | 274,754 |   |

| Statements of Income                                                |   | (Dollars in thousands) |   |
|---------------------------------------------------------------------|--------|------------------------|--------|
| Years ended December 31,                                            |   | 2009                   |   |   | 2008 |   |   | 2007 |   |
| Income:                                                             |   |                   |   |   |   |   |   |   |   |
| Dividends from subsidiaries                                         |   | $                      | 16,760 |   |   | $ | 26,259 |   |   | $ | 21,093 |   |
| Net gains (losses) on interest rate swap contracts                  |   |                   | 117    |   |   |   | (638 | ) |   |   | – |   |
| Other income                                                        |   |                   | 1      |   |   |   | 71 |   |   |   | – |   |
| Total income                                                        |   |                   | 16,878 |   |   |   | 25,692 |   |   |   | 21,093 |   |
| Expenses:                                                           |   |                   |   |   |   |   |   |   |   |   |   |   |
| Interest on junior subordinated debentures                          |   |                   | 1,947  |   |   |   | 1,879 |   |   |   | 1,352 |   |
| Interest on deferred acquisition obligations                        |   |                   | 3      |   |   |   | 217 |   |   |   | 312 |   |
| Legal and professional fees                                         |   |                   | 291    |   |   |   | 309 |   |   |   | 187 |   |
| Other                                                               |   |                   | 280    |   |   |   | 236 |   |   |   | 173 |   |
| Total expenses                                                      |   |                   | 2,521  |   |   |   | 2,641 |   |   |   | 2,024 |   |
| Income before income taxes                                          |   |                   | 14,357 |   |   |   | 23,051 |   |   |   | 19,069 |   |
| Income tax benefit                                                  |   |                   | 820    |   |   |   | 1,104 |   |   |   | 691 |   |
| Income before equity in undistributed earnings of subsidiaries      |   |                   | 15,177 |   |   |   | 24,155 |   |   |   | 19,760 |   |
| Equity in undistributed (over-distributed) earnings of subsidiaries |   |                   | 919    |   |   |   | (1,983 | ) |   |   | 4,040 |   |
| Net income                                                          |   | $                      | 16,096 |   |   | $ | 22,172 |   |   | $ | 23,800 |   |

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Table of Contents

| WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES                   |
|-------------------------------------------------------------------|
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) |
| December 31, 2009 and 2008                                        |

| Statements of Cash Flows                                                                 |   | (Dollars in thousands) |    |
|------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                     |   |                   |    |
| Years ended December 31,                                                                 |   | 2009                   |    |   | 2008 |   |   | 2007 |   |
| Cash flow from operating activities:                                                     |   |                   |    |   |   |   |   |   |   |
| Net income                                                                               |   | $                      | 16,096  |   |   | $ | 22,172 |   |   | $ | 23,800 |   |
| Adjustments to reconcile net income                                                      |   |                   |    |   |   |   |   |   |   |   |   |   |
| to net cash provided by operating activities:                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Equity in (undistributed) over-distributed earnings of subsidiary                        |   |                   | (919    | ) |   |   | 1,983 |   |   |   | (4,040 | ) |
| Net (gains) losses on interest rate swap contracts                                       |   |                   | (117    | ) |   |   | 638 |   |   |   | – |   |
| (Increase) decrease in dividend receivable                                               |   |                   | (120    | ) |   |   | (1,200 | ) |   |   | 2,520 |   |
| Decrease (increase) in other assets                                                      |   |                   | 42      |   |   |   | (37 | ) |   |   | (8 | ) |
| (Decrease) increase in accrued expenses and other liabilities                            |   |                   | (112    | ) |   |   | 187 |   |   |   | 350 |   |
| Other, net                                                                               |   |                   | (52     | ) |   |   | (320 | ) |   |   | (375 | ) |
| Net cash provided by operating activities                                                |   |                   | 14,818  |   |   |   | 23,423 |   |   |   | 22,247 |   |
| Cash flows from investing activities:                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |
| Equity investment in subsidiary bank                                                     |   |                   | – |   |   |   | (56,425 | ) |   |   | – |   |
| Equity investment in capital trust                                                       |   |                   | – |   |   |   | (310 | ) |   |   | – |   |
| Payment of deferred acquisition obligation                                               |   |                   | (2,509  | ) |   |   | (15,159 | ) |   |   | (6,720 | ) |
| Net cash used in investing activities                                                    |   |                   | (2,509  | ) |   |   | (71,894 | ) |   |   | (6,720 | ) |
| Cash flows from financing activities:                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |
| Issuance (purchase) of treasury stock, including net deferred compensation plan activity |   |                   | 53      |   |   |   | 36 |   |   |   | (5,200 | ) |
| Proceeds from the issuance of common stock under dividend reinvestment plan              |   |                   | 1,106   |   |   |   | 864 |   |   |   | – |   |
| Proceeds from the issuance of common stock, net                                          |   |                   | – |   |   |   | 46,874 |   |   |   | – |   |
| Proceeds from the exercise of stock options and issuance of other equity instruments     |   |                   | 364     |   |   |   | 182 |   |   |   | 1,052 |   |
| Tax (expense) benefit from stock option exercises and issuance of other                  |   |                   |    |   |   |   |   |   |   |   |   |   |
| equity instruments                                                                       |   |                   | (26     | ) |   |   | 199 |   |   |   | 727 |   |
| Proceeds from the issuance of junior subordinated debentures, net of issuance costs      |   |                   | – |   |   |   | 10,016 |   |   |   | – |   |
| Cash dividends paid                                                                      |   |                   | (13,440 | ) |   |   | (10,998 | ) |   |   | (10,580 | ) |
| Net cash (used in) provided by financing activities                                      |   |                   | (11,943 | ) |   |   | 47,173 |   |   |   | (14,001 | ) |
| Net increase (decrease) in cash                                                          |   |                   | 366     |   |   |   | (1,298 | ) |   |   | 1,526 |   |
| Cash at beginning of year                                                                |   |                   | 803     |   |   |   | 2,101 |   |   |   | 575 |   |
| Cash at end of year                                                                      |   | $                      | 1,169   |   |   | $ | 803 |   |   | $ | 2,101 |   |

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Table of Contents

ITEM 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

ITEM 9A.  Controls and Procedures.

ITEM 9B.  Other Information.

PART III

ITEM 10.  Directors, Executive Officers and Corporate Governance.

ITEM 11.  Executive Compensation.

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ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

| Equity Compensation Plan Information                          |
|---------------------------------------------------------------|
| Plan category                                                 | Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plan (excluding securities referenced in column (a)) |
|                                                          | (a) | (b) | (c) |
| Equity compensation plansapproved by security holders (2)     | 1,041,741 (3) (4) | $21.97 (5) | 660,575 (4) (6) |
|                                                          |   |   |   |
| Equity compensation plans notapproved by security holders (7) | 21,077 | N/A (8) | N/A |
| Total                                                         | 1,062,818 | $21.97 (5) (8) | 660,575 |

| (1)   | Does not include any nonvested shares as such shares are already reflected in the Bancorp’s outstanding shares. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (2)   | Consists of the 1997 Plan and the 2003 Plan. |
|-----------------|----------------------------------------------|

| (3)   | Includes 51,819 nonvested share units outstanding under the 1997 Plan and 52,157 nonvested share units and 24,186 performance shares outstanding under the 2003 Plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes the maximum amount of performance shares that could be issued under existing awards.  The actual shares issued may differ based on the attainment of performance goals. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Does not include the effect of the nonvested share units awarded under the 1997 Plan and the 2003 Plan because these units do not have an exercise price. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Includes up to 660,575 securities that may be issued in the form of nonvested shares. |
|-----------------|---------------------------------------------------------------------------------------|

| (7)   | Consists of the Deferred Compensation Plan, which is described below. |
|-----------------|-----------------------------------------------------------------------|

| (8)   | Does not include information about the phantom stock units outstanding under the Deferred Compensation Plan, as such units do not have any exercise price. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 13.  Certain Relationships and Related Transactions, and Director Independence.

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Table of Contents

ITEM 14.  Principal Accounting Fees and Services.

ITEM 15.  Exhibits, Financial Statement Schedules.

| (a) |  1. | Financial Statements.  The financial statements of the Corporation required in response to this Item are listed in response to Part II, Item 8 of this Annual Report on Form 10-K. |
|-----|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  2. | Financial Statement Schedules.  All schedules normally required by Article 9 of Regulation S-X and all other schedules to the consolidated financial statements of the Corporation have been omitted because the required information is either not required, not applicable, or is included in the consolidated financial statements or notes thereto. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  3. | Exhibits.  The following exhibits are included as part of this Form 10-K. |
|--------|----------|------------------------------------------------------------------------------------------|

| Exhibit Number |                                                                                                                                                                                                                                                                                                                                                                                      |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1            | Stock Purchase Agreement, dated March 18, 2005, by and between Washington Trust Bancorp, Inc., Weston Financial Group, Inc., and the shareholders of Weston Financial Group, Inc. – Filed as Exhibit No. 10.1 to the Registrant’s Current Report on Form 8-K (File No. 000-13091), as filed with theSecurities and Exchange Commission on March 22, 2005. (1)  |
| 2.2            | Amendment to Stock Purchase Agreement, dated December 24, 2008, by and between Washington Trust Bancorp, Inc., Weston Financial Group, Inc., and the shareholders of Weston Financial Group, Inc. – Filed as Exhibit 2.2 to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for thefiscal year ended December 31, 2008. (1)                   |
| 3.1            | Restated Articles of Incorporation of the Registrant – Filed as Exhibit 3.a to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2000. (1)                                                                                                                                                               |
| 3.2            | Amendment to Restated Articles of Incorporation – Filed as Exhibit 3.b to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002. (1)                                                                                                                                                                                              |
| 3.3            | Amended and Restated By-Laws of the Registrant – Filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K dated September 20, 2007. (1)                                                                                                                                                                                                                  |
| 4.1            | Transfer Agency and Registrar Services Agreement, between Registrant and American Stock Transfer & Trust Company, dated February 15, 2006 – Filed as Exhibit 4.1 on the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2006. (1)                                                                                           |
| 4.2            | Agreement of Substitution and Amendment of Amended and Restated Rights Agreement, between Registrant and American Stock Transfer & Trust Company, dated February 15, 2006 – Filed as Exhibit 4.2 on the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended March 31,2006. (1)                                                       |
| 4.3            | Shareholder Rights Agreement, dated as of August 17, 2006, between Washington Trust Bancorp, Inc. and American Stock Transfer & Trust Company, as Rights Agent – Filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K dated August 17, 2006. (1)                                                                                                      |
| 10.1           | Vote of the Board of Directors of the Registrant, which constitutes the 1996 Directors’ Stock Plan – Filed as Exhibit 10.e to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2002. (1)(2)                                                                                                  |
| 10.2           | The Registrant’s 1997 Equity Incentive Plan – Filed as Exhibit 10.f to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2002. (1)(2)                                                                                                                                                         |
| 10.3           | Amendment to the Registrant’s 1997 Equity Incentive Plan – Filed as Exhibit 10.b to the Registrant’s Quarterly Report on Form 10-Q (File No. 000-13091) for the quarterly period ended June 30, 2000. (1) (2)                                                                                                                                            |
| 10.4           | Form of Restricted Stock Units Certificate under the Washington Trust Bancorp, Inc. 1997 Equity Incentive Plan, as amended (employees) – Filed as exhibit 10.1 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on June 17, 2005. (1)                                                    |
| 10.5           | Form of Nonqualified Stock Option Certificate under the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan, as amended (employees) - Filed as Exhibit No. 10.2 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on June 17,2005. (1)                                                     |

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| Exhibit Number |   |
|----------------|--------|

| 10.6  | Form of Nonqualified Stock Option Certificate under the Washington Trust Bancorp, Inc. 1997 Equity Incentive Plan, as amended (members of the Board of Directors) - Filed as Exhibit No. 10.3 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and ExchangeCommission on June 17, 2005. (1)                                                                                                 |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.7  | Form of Nonqualified Stock Option Certificate under the Washington Trust Bancorp, Inc. 1997 Equity Incentive Plan, as amended (employees) – Filed as Exhibit No. 10.4 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on June 17,2005. (1)                                                                                                                   |
| 10.8  | Form of Incentive Stock Option Certificate under the Washington Trust Bancorp, Inc. 1997 Equity Incentive Plan, as amended – Filed as Exhibit No. 10.5 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on June 17, 2005. (1)                                                                                                                                 |
| 10.9  | Form of Restricted Stock Units Certificate under the Washington Trust Bancorp, Inc. 1997 Equity Incentive Plan, as amended (members of the Board of Directors) – Filed as Exhibit No. 10.6 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and ExchangeCommission on June 17, 2005. (1)                                                                                              |
| 10.10 | Form of Restricted Stock Agreement under the Washington Trust Bancorp, Inc. 1997 Equity Incentive Plan, as amended – Filed as Exhibit No. 10.7 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on June 17, 2005. (1)                                                                                                                                         |
| 10.11 | Form of Nonqualified Stock Option Certificate under the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan, as amended (members of the Board of Directors) – Filed as Exhibit No. 10.8 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and ExchangeCommission on June 17, 2005. (1)                                                                                            |
| 10.12 | Form of Incentive Stock Option Certificate under the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan, as amended – Filed as Exhibit No. 10.9 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on June 17, 2005. (1)                                                                                                                                  |
| 10.13 | Compensatory agreement with Galan G. Daukas, dated July 28, 2005 – Filed as Exhibit 10.1 to the Bancorp’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005. (1) (2)                                                                                                                                                                                                                                            |
| 10.14 | Amended and Restated Declaration of Trust of WT Capital Trust I dated August 29, 2005, by and among Wilmington Trust Company, as Delaware Trustee and Institutional Trustee, Washington Trust Bancorp, Inc., as Sponsor, and the Administrators listed therein – Filed as exhibit 10.1 to the Bancorp’sCurrent Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1, 2005. (1)   |
| 10.15 | Indenture dated as of August 29, 2005, between Washington Trust Bancorp, Inc., as Issuer, and Wilmington Trust Company, as Trustee – Filed as exhibit 10.2 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1,2005. (1)                                                                                                                          |
| 10.16 | Guaranty Agreement dated August 29, 2005, by and between Washington Trust Bancorp, Inc. and Wilmington Trust Company – Filed as exhibit 10.3 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1, 2005. (1)                                                                                                                                            |
| 10.17 | Certificate Evidencing Fixed/Floating Rate Capital Securities of WT Capital Trust I dated August 29, 2005 – Filed as exhibit 10.4 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1, 2005. (1)                                                                                                                                                       |
| 10.18 | Fixed/Floating Rate Junior Subordinated Deferrable Interest Debenture of Washington Trust Bancorp, Inc. dated August 29, 2005 – Filed as exhibit 10.5 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1, 2005. (1)                                                                                                                                   |
| 10.19 | Amended and Restated Declaration of Trust of WT Capital Trust II dated August 29, 2005, by and among Wilmington Trust Company, as Delaware Trustee and Institutional Trustee, Washington Trust Bancorp, Inc., as Sponsor, and the Administrators listed therein – Filed as exhibit 10.6 to the Bancorp’sCurrent Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1, 2005. (1)  |
| 10.20 | Indenture dated as of August 29, 2005, between Washington Trust Bancorp, Inc., as Issuer, and Wilmington Trust Company, as Trustee – Filed as exhibit 10.7 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1,2005. (1)                                                                                                                               |

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| Exhibit Number |   |
|----------------|--------|

| 10.21 | Guaranty Agreement dated August 29, 2005, by and between Washington Trust Bancorp, Inc. and Wilmington Trust Company – Filed as exhibit 10.8 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1, 2005. (1)                                                                                |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.22 | Certificate Evidencing Capital Securities of WT Capital Trust II (Number of Capital Securities – 10,000) dated August 29, 2005 – Filed as exhibit 10.9 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1,2005. (1)                                                                 |
| 10.23 | Certificate Evidencing Capital Securities of WT Capital Trust II (Number of Capital Securities – 4,000) dated August 29, 2005 – Filed as exhibit 10.10 to the Bancorp’s Current Report on Form 8-K (File No. 0-13091), as filed with the Securities and Exchange Commission on September 1, 2005. (1)                                                                       |
| 10.24 | Fixed/Floating Rate Junior Subordinated Debt Security due 2035 of Washington Trust Bancorp, Inc. dated August 29, 2005 – Filed as exhibit 10.11 to the Bancorp’s Current Report on Form 8-K (File No. 000-13091), as filed with the Securities and Exchange Commission on September 1, 2005. (1)                                                                             |
| 10.25 | Form of Restricted Stock Units Certificate under the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan, as amended (employees) – Filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated April 25, 2006. (1) (2)                                                                                                                                        |
| 10.26 | Form of Restricted Stock Units Certificate under the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan, as amended (members of the Board of Directors) – Filed as Exhibit 10.3 to the Registrant’s Current Report on Form 8-K dated April 25, 2006. (1)(2)                                                                                                                 |
| 10.27 | Form of Restricted Stock Agreement under the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan, as amended (employees) – Filed as Exhibit 10.4 to the Registrant’s Current Report on Form 8-K dated April 25, 2006. (1)(2)                                                                                                                                                 |
| 10.28 | Form of Restricted Stock Agreement under the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan, as amended (members of the Board of Directors) – Filed as Exhibit 10.5 to the Registrant’s Current Report on Form 8-K dated April 25, 2006. (1)(2)                                                                                                                         |
| 10.29 | Amended and Restated Nonqualified Deferred Compensation Plan – Filed as Exhibit 10.1 to the Registrant’s Registration Statement on Form S-8 (File No. 333-146388) filed with the Securities and Exchange Commission on September 28, 2007. (1)(2)                                                                                                                                 |
| 10.30 | Wealth Management Business Building Incentive Plan – Filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 000-13091) for the quarterly period ended March 31, 2007. (1)(2)                                                                                                                                                                           |
| 10.31 | Amended and Restated Supplemental Pension Benefit and Profit Sharing Plan – Filed as Exhibit 10.36 to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2007. (1) (2)                                                                                                                                                  |
| 10.32 | Amended and Restated Supplemental Executive Retirement Plan – Filed as Exhibit 10.37 to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2007. (1)(2)                                                                                                                                                                 |
| 10.33 | Form of Executive Severance Agreement – Filed as Exhibit 10.38 to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2007. (1)(2)                                                                                                                                                                                       |
| 10.34 | Amended and Restated Declaration of Trust of Washington Preferred Capital Trust dated April 7, 2008, by and among Wilmington Trust Company, as Delaware Trustee and Institutional Trustee, Washington Trust Bancorp, Inc., as sponsor, and the Administrators listed therein – Filed as Exhibit 10.1 to theRegistrant’s Current Report on Form 8-K dated April 7, 2008. (1)  |
| 10.35 | Indenture dated as of April 7, 2008, between Washington Trust Bancorp, Inc., as Issuer, and Wilmington Trust Company, as Trustee – Filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated April 7, 2008. (1)                                                                                                                                             |
| 10.36 | Guarantee Agreement dated April 7, 2008, by and between Washington Trust Bancorp, Inc. and Wilmington Trust Company – Filed as Exhibit 10.3 to the Registrant’s Current Report on Form 8-K dated April 7, 2008. (1)                                                                                                                                                          |
| 10.37 | Certificate Evidencing Floating Rate Capital Securities of Washington Preferred Capital Trust dated April 7, 2008 – Filed as Exhibit 10.4 to the Registrant’s Current Report on Form 8-K dated April 7, 2008. (1)                                                                                                                                                            |
| 10.38 | Floating Rate Junior Subordinated Deferrable Interest Debenture of Washington Trust Bancorp, Inc. dated April 7, 2008 – Filed as Exhibit 10.5 to the Registrant’s Current Report on Form 8-K dated April 7, 2008. (1)                                                                                                                                                             |

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| Exhibit Number |   |
|----------------|--------|

| 10.39  | Form of Deferred Stock Unit Award Agreement under the Washington Trust Bancorp, Inc. 2003 Stock Incentive Plan, as amended (employees)  – Filed as Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q (File No. 000-13091) for the quarterly period ended June 30, 2008. (1)(2)  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.40  | First Amendment to The Washington Trust Company Nonqualified Deferred Compensation Plan As Amended and Restated– Filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 000-13091) for the quarterly period ended September 30, 2008. (1)(2)                                |
| 10.41  | Share Purchase Agreement, dated October 2, 2008, by and among Washington Trust Bancorp, Inc. and the Purchasers – Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated October 2, 2008. (1)                                                                                      |
| 10.42  | Registration Rights Agreement, dated October 2, 2008, by and among Washington Trust Bancorp, Inc. and the Purchasers – Filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated October 2, 2008. (1)                                                                                 |
| 10.43  | Annual Performance Plan, dated December 31, 2008 – Filed as Exhibit 10.49 to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2008. (1) (2)                                                                                           |
| 10.44  | Amendment to the Registrant’s Wealth Management Business Building Incentive Plan, dated January 1, 2009 – Filed as Exhibit 10.51 to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2008. (1) (2)                              |
| 10.45  | 2003 Stock Incentive Plan as Amended and Restated - Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated April 29, 2009. (1) (2)                                                                                                                                                            |
| 10.46  | Form of Change in Control Agreement – Filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 001-32991) for the quarterly period ended June 30, 2009. (1)(2)                                                                                                                |
| 10.47  | Compensatory agreement with Joseph J. MarcAurele, dated July 16, 2009 – Filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated July 24, 2009. (1) (2)                                                                                                                         |
| 10.48  | Change in Control Agreement with Joseph J. MarcAurele, dated September 21, 2009 – Filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q (File No. 001-32991) for the quarterly period ended September 30, 2009. (1) (2)                                                         |
| 21.1   | Subsidiaries of the Registrant – Filed as Exhibit 21.1 to the Registrant’s Annual Report on Form 10-K (File No. 000-13091) for the fiscal year ended December 31, 2008. (1)                                                                                                                       |
| 23.1   | Consent of Independent Accountants – Filed herewith.                                                                                                                                                                                                                                                              |
| 31.1   | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Filed herewith.                                                                                                                                                                                              |
| 31.2   | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Filed herewith.                                                                                                                                                                                              |
| 32.1   | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Filed herewith. (3)                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                         |
| (1)    | Not filed herewith.  In accordance with Rule 12b-32 promulgated pursuant to the Exchange Act, reference is made to the documents previously filed with the SEC, which are incorporated by reference herein.                                                                                                        |
| (2)    | Management contract or compensatory plan or arrangement.                                                                                                                                                                                                                                                                     |
| (3)    | These certifications are not “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference into any filing under the Securities Act or the Exchange Act.                                                                                                                                   |

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Signatures

|                     |   | WASHINGTON TRUST BANCORP, INC.                                              |
|--------------------------|--------|-----------------------------------------------------------------------------|
|                     |   | (Registrant)                                                                |
|                     |   |                                                                        |
| Date: March 1, 2010 | By     | /s/  John C. Warren                                               |
|                     |   | John C. Warren                                                              |
|                     |   | Chairman, Chief Executive Officer and Director(principal executive officer) |
|                     |   |                                                                        |
| Date: March 1, 2010 | By     | /s/  David V. Devault                                             |
|                     |   | David V. DevaultExecutive Vice President,                                   |
|                     |   | Chief Financial Officer and Secretary                                       |
|                     |   | (principal financial and principal accounting officer)                      |

| Date: March 1, 2010 |   | /s/  Gary P. Bennett       |
|--------------------------|--------|--------------------------------------|
|                     |   | Gary P. Bennett, Director            |
|                     |   |                                 |
| Date: March 1, 2010 |   | /s/  Steven J. Crandall    |
|                     |   | Steven J. Crandall, Director         |
|                     |   |                                 |
| Date: March 1, 2010 |   | /s/  Barry G. Hittner      |
|                     |   | Barry G. Hittner, Director           |
|                     |   |                                 |
| Date: March 1, 2010 |   | /s/  Katherine W. Hoxsie   |
|                     |   | Katherine W. Hoxsie, Director        |
|                     |   |                                 |
| Date: March 1, 2010 |   | /s/  Joseph J. MarcAurele  |
|                     |   | Joseph J. MarcAurele, Director       |
|                     |   |                                 |
| Date: March 1, 2010 |   | /s/  Edward M. Mazze       |
|                     |   | Edward M. Mazze, Director            |
|                     |   |                                 |
| Date: March 1, 2010 |   | /s/  Kathleen McKeough     |
|                     |   | Kathleen McKeough, Director          |
|                     |   |                                 |
| Date: March 1, 2010 |   | /s/  Victor J. Orsinger II |
|                     |   | Victor J. Orsinger II, Director      |

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|                     |   |                                    |
|--------------------------|--------|-----------------------------------------|
| Date: March 1, 2010 |   | /s/  H. Douglas Randall III   |
|                     |   | H. Douglas Randall, III, Director       |
|                     |   |                                    |
| Date: March 1, 2010 |   | /s/  Patrick J. Shanahan, Jr. |
|                     |   | Patrick J. Shanahan, Jr., Director      |
|                     |   |                                    |
| Date: March 1, 2010 |   | /s/  Neil H. Thorp            |
|                     |   | Neil H. Thorp, Director                 |
|                     |   |                                    |
| Date: March 1, 2010 |   | /s/  John F. Treanor          |
|                     |   | John F. Treanor, Director               |
|                     |   |                                    |
| Date: March 1, 2010 |   | /s/  John C. Warren           |
|                     |   | John C. Warren, Director                |
|                     |   |                                    |