Market Overview

Washington Trust Bancorp, Inc. Named to KBW's Honor Roll


Washington Trust Bancorp, Inc., the parent company of The Washington Trust Company, announced today that it has been selected by Keefe Bruyette & Woods Inc. for their “2011 Bank Honor Roll” of superior performers. The Honor Roll, published by Melissa Roberts, KBW senior vice president and analyst, includes 45 banks and thrifts that have performed strongly over the past 10 years. Washington Trust, the largest independent bank headquartered in Rhode Island, is the only Rhode Island Bank included in the KBW Honor Roll.

“We are honored to be selected to the KBW Honor Roll for our 10-year performance,” said Joseph J. MarcAurele, Washington Trust Chairman, President and Chief Executive Officer. “Washington Trust is a solid institution with a strong history, which has continued to grow and remain profitable during challenging economic times.”

The report limits eligibility to banks with more than $500 million in assets that have reported no annual loss per share before extraordinary items over the last 10 years. Additionally, candidates must have reported net income per share in 2011, before extraordinary items, equal to or greater than the peak net income per share over the past 10 years; and consecutive increases in net income per share, before extraordinary items, since 2009. KBW found that only 45 banking institutions, out of nearly 400 total companies screened, now qualify for inclusion on the KBW Bank Honor Roll.

The report notes that companies on the honor roll strongly outperformed the KBW Bank Index and the KBW Regional Banking Index between 2006 and 2011, which have compound annual growth rates of negative 19.6% and negative 13.2%, respectively, over that period. The average price depreciation for honor roll banks over that period was 0.9%, compounded annually.

The Bank Honor Roll is a way for KBW to acknowledge companies that have managed to successfully navigate a variety of obstacles as they have arisen, despite difficult conditions in what remains a growth-challenged environment. In terms of stock price performance, Bank Honor Roll companies significantly outperformed both the banking industry and the overall stock market during the five-year period between 2006 and 2011.

Despite posting an average price depreciation of 0.9% compounded annually, the KBW Honor Roll banks outperformed both the KBW Bank Index (BKX) and the KBW Regional Banking Index (KRX) five-year compounded annual growth rates of -19.6% and -13.2%, respectively.

The Honor Roll banks also meaningfully outperformed the S&P 500 (SPX) return of -2.4% over the equivalent time period.

In September 2011, Washington Trust was listed on Sandler O'Neill + Partners' “2011 Bank and Thrift Sm-All-Stars” report as one of the top 25 small-cap institutions in the United States. Washington Trust was also ranked #40 on the Bank Director magazine's annual Bank Performance Scorecard list of the top 150 publicly-listed banks in America in May 2011. In both cases, Washington Trust was the only Rhode Island bank selected.

About KBW

KBW, Inc. operates in the U.S., Europe and Asia through its broker dealer subsidiaries, Keefe, Bruyette & Woods, Inc., Keefe, Bruyette & Woods Limited and Keefe, Bruyette & Woods Asia Limited. Celebrating its 50th anniversary, KBW has established itself as a leading independent authority in the banking, insurance, brokerage, asset management, mortgage banking, real estate and specialty finance sectors. Founded in 1962, the firm maintains industry-leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading in equities and debt securities of financial services companies.

About Washington Trust

Washington Trust Bancorp, Inc, is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, southeastern Connecticut and eastern Massachusetts. The Corporation's common stock trades on The NASDAQ Global Select® Stock Market under the symbol WASH. Investor information is available on the Corporation's web site:

Washington Trust Bancorp, Inc.
Elizabeth B. Eckel, 401-348-1309
Senior Vice President,
Marketing and Investor Relations

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