Financial Statements Consolidated Balance Sheets December 31, 2002 2001 (Dollars in thousands) ASSETS: Cash and due from banks $39,298 $30,399 Federal funds sold and other short-term investments 11,750 20,500 Mortgage loans held for sale 4,566 7,710 Securities: Available for sale, at fair value 553,556 453,956 Held to maturity, at cost; fair value $250,446 in 2002 and $177,595 in 2001 242,277 175,105 Total securities 795,833 629,061 Federal Home Loan Bank stock, at cost 24,582 23,491 Loans 795,126 605,645 Less allowance for loan losses 15,487 13,593 Net loans 779,639 592,052 Premises and equipment, net 24,415 22,102 Accrued interest receivable 7,773 7,124 Goodwill and other intangibles 25,260 669 Other assets 32,545 29,121 Total assets $1,745,661 $1,362,229 LIABILITIES: Deposits: Demand $157,539 $134,783 Savings 471,354 316,953 Time 481,600 365,140 Total deposits 1,110,493 816,876 Dividends payable 1,825 1,569 Federal Home Loan Bank advances 480,080 431,490 Other borrowings 9,183 2,087 Accrued expenses and other liabilities 15,359 12,270 Total liabilities 1,616,940 1,264,292 Commitments and contingencies SHAREHOLDERS’ EQUITY: Common stock of $.0625 par value; authorized 30 million shares in 2002  and 2001; issued 13,086,795 shares in 2002 and 12,065,283 in 2001  818 754 Paid-in capital 28,767 10,696 Retained earnings 90,717 81,114 Unamortized employee restricted stock (24) – Accumulated other comprehensive income 9,294 6,416 Treasury stock, at cost; 44,361 shares in 2002 and 54,102 shares in 2001 (851) (1,043) Total shareholders’ equity 128,721 97,937 Total liabilities and shareholders’ equity $1,745,661 $1,362,229 Refer to Washington Trust Bancorp, Inc.’s 2002 Annual Report on Form 10-K for a complete set of consolidated financial statements. twelve