2 0 1 4 A n n u a l R e p o r t E C N A M R O F R E P H T W O R G N O I T I N G O C E R 2 0 1 4 A t A G l a n c e $40.8 Million net income 1.23% return on average assets 11.87% return on average equity $3.6 Billion total assets $40.18 closing stock price $20.68 book value per share 19 branches 6 mortgage offices 3 commercial lending offices 4 wealth management offices Y R O T S I H Oldest Community Bank in the United States 1st to print currency with likeness of George Washington 590 employees Top performer - Sandler O’Neill “Sm-ALL Stars” - Keefe, Bruyette & Woods “Bank Honor Roll” - “Bank Directors’ Scorecard” - “ABA Banking Journal” One of the “Best Places To Work” - 4th consecutive year by Providence Business News Y T I N U M M O C 5,000 hours volunteered by employees 1,200 books collected for United Way 5 tons donated to local food banks H C A E R 40,000 followers across all social media channels As of or for the year ended December 31, 2014 L e t t e r To S h a r e h o l d e r s L-R: Edward O. Handy III, President & Chief Operating Officer, and Joseph J. MarcAurele Chairman & Chief Executive Officer 2014 was an excellent year for Washington Trust, as net income and earnings per share both reached all-time highs and we once again increased our dividend to shareholders. The key to our record performance was consistency. We stayed true to our core values and business lines, and built on our reputation for trustworthiness, local decision-making, and exceptional service. We continue to adhere to our company’s fundamental strategies, which are proven and sound: 1. Maximize a diversified stream of revenues and fee income. 2. Grow our key business lines through continued expansion in southern New England. 3. Generate top-quartile financial performance by maintaining solid asset quality and consistent profitability. Washington Trust once again ranked among industry leaders, both regionally and nationally, for total return and stock price performance, according to SNL Financial’s list of public banks and thrifts with $1.5 - $10 billion in total assets. Our key profitability ratios, capital position, and asset quality measures also remained strong. And our reputation as one of the premier financial institutions in New England continued to grow. Branch expansion in Rhode Island remains a priority for us as we seek to build upon our 9 percent deposit market share, which ranks us third in the State. In May 2014 we opened our 19th RI branch, in Johnston, and have plans to open two additional branches, one in Rumford and another on the East Side of Providence, in 2015. We've also identified and submitted applications for future locations in North Providence and Coventry, which are pending regulatory approval. Our belief is opening modestly-sized branches, with reasonable staffing, will enable us to further leverage our statewide brand and increase market share. We had double-digit total loan growth in 2014, fueled by increases in our commercial and residential loan portfolios. Production came from throughout the southern New England area. Our commercial lending group posted outstanding numbers for the year, providing an excellent balance of commercial real estate and commercial and industrial loans. Our residential 2 0 1 4 H i g h l i g h t s Total Loans Total Deposits H T W O R G Y C N E T S I S N O C (At Dec. 31st; In Billions) (At Dec. 31st; In Billions) mortgage business provided a good source of non-interest income. We opened a mortgage production office in Darien, CT and now have six mortgage offices in the Rhode Island, Massachusetts and Connecticut area. We believe we have the right team in place and are in the right markets to garner our fair share of loans going forward. Wealth management provided key non-interest revenue in 2014, benefitting from a solid year in the financial markets. We saw an uptick in assets under management, bringing the total to just over $5 billion. Partnerships between our business teams helped us build and expand relationships with clients. In addition to writing loans, our commercial team brought in cash management deposits. Mortgage officers referred customers to our wealth management advisors and they, in turn, directed clients to securities-based loans. Internal partnerships enable us to offer clients the full breadth of capabilities, all under the Washington Trust umbrella. We continue to invest in technology to increase operational efficiencies and make it easier, faster, and more convenient for customers to do business with us. Recent technology investments have made processing loan applications faster for customers and our lending and underwriting staff. New mobile and online banking features allow customers to securely use their phones, computers, and tablets to bank anywhere, anytime. And our new wealth management website portals will soon provide clients with access to enhanced statements and portfolio reporting. We believe customers appreciate having varied access points to our services. And no matter where, when, or how they interact with us, we are committed to always providing them with what truly distinguishes the Washington Trust brand: a superior customer experience across all lines of business. We are grateful for the talents and hard work of our employees – they are the face of Washington Trust. In addition to serving our customers, Washington Trust employees also are committed to the communities in which they live and work. Throughout the year, they donate their time to support causes and organizations that make our communities special. Whether it's collecting peanut butter for local food pantries, serving meals at housing shelters, or raising funds for health and human service organizations, they are making a difference each and every day. Our company is fortunate to draw such capable and accomplished people and was once again rewarded as one of the “Best Places to Work” by Providence Business News for the fourth consecutive year. We look ahead with confidence. We have a strong financial position, an exceptional team of professionals, and the tools and technology that we need to compete and succeed. We are thankful for the support of our shareholders and are pleased to have provided solid returns and healthy dividends. Leading your corporation is an honor, and we look forward to fostering continued growth and profitability. Joseph J. MarcAurele Chairman & Chief Executive Officer E C N A M R O F R E P Wealth Management Assets Under Administration Cash Dividends Declared Per Share E U L A V (At Dec. 31st; In Billions) (In Dollars) C o r p o r a t e D i r e c t o r y - W a s h i n g t o n Tr u s t B a n c o r p , I n c . Board of Directors Senior Management John J. Bowen, Chancellor, President and Chief Executive Officer, Joseph J. MarcAurele, Chairman and Chief Executive Officer Johnson & Wales University Edward O. Handy III, President and Chief Operating Officer Steven J. Crandall, Vice President, Ashaway Line & Twine Mfg. Co. David V. Devault, Vice Chair, Secretary and Chief Financial Officer Robert A. DiMuccio, CPA, Chairman, President and Chief Executive Stephen M. Bessette, Executive Vice President, Retail Lending Officer, Amica Mutual Insurance Company Kristen L. DiSanto, Executive Vice President, Human Resources Barry G. Hittner, Esq., Retired Attorney Mark K. W. Gim, Executive Vice President, Wealth Management, Katherine W. Hoxsie, CPA, Retired Vice President, and Treasurer Hoxsie Buick-Pontiac-GMC Truck, Inc. Debra A. Gormley, Executive Vice President, Retail Banking Joseph J. MarcAurele, Chairman and Chief Executive Officer, James M. Hagerty, Executive Vice President and Chief Lending Officer Washington Trust Bancorp, Inc. Barbara J. Perino, CPA, Executive Vice President, Operations Kathleen E. McKeough, Retired Senior Vice President of Human Dennis L. Algiere, Senior Vice President, Chief Compliance Officer and Resources, GTECH Holdings Corporation Director of Community Affairs Victor J. Orsinger II, Esq., Of Counsel, Orsinger Nardone Lallo & Thomsen Michael T. Clarkin, Senior Vice President and Corporate Sales Manager H. Douglas Randall III, Chief Executive Officer, Randall, Realtors, Kinlin Joseph M. Confessore, Senior Vice President and Team Leader, Grover Real Estate, Page Taft Real Estate, Pequot Commercial and Commercial Banking Kinlin Grover Commercial Elizabeth B. Eckel, Senior Vice President, Marketing Edwin J. Santos, Chairman, Prospect CharterCARE, LLC Philip L. Friend, Senior Vice President, Retail Lending Patrick J. Shanahan Jr., Former Chairman, President and Maria N. Janes, CPA, Senior Vice President and Controller Chief Executive Officer, First Financial Corp. Robert R. Kent Jr., Senior Vice President and Team Leader, John F. Treanor, Retired President and Chief Operating Officer, Commercial Banking Washington Trust Bancorp, Inc. Rogean B. Makowski, Senior Vice President, John C. Warren, Retired Chairman and Chief Executive Officer, Wealth Management Client Services Washington Trust Bancorp, Inc. Mary E. Noons, Senior Vice President, Lending Support Services C. Scott Ostrowski, Senior Vice President, Internal Audit Officers of the Corporation Timothy M. Pickering, Senior Vice President, Joseph J. MarcAurele, Chairman and Chief Executive Officer Commercial Real Estate Group Edward O. Handy III, President and Chief Operating Officer Brenda H. Senak, Senior Vice President, Risk Management David V. Devault, Vice Chair, Secretary and Chief Financial Officer L. Peter Sheehan, Senior Vice President, Mark K. W. Gim, Executive Vice President, Wealth Management, Wealth Management Investments and Treasurer Julia Anne M. Slom, Senior Vice President and Team Leader, Commercial Real Estate Group The Washington Trust Company Directors’ Advisory Council John P. Sullivan, Senior Vice President and Chief Information Officer Alcino G. Almeida, Gary P. Bennett, Richard A. Grills, Rick T. Tjader, Senior Vice President and Director of Project Management Larry J. Hirsch, Joseph J. Kirby, Jacques de Laporte, Edward M. Mazze, James W. McCormick Jr., Thomas F. Moore, Brendan P. O’Donnell, Weston Financial Group, Inc. Joseph H. Potter, Joyce Olson Resnikoff, Anthony J. Rose Jr., John W. Filoon III, President and Chief Operating Officer James P. Sullivan, Neil H. Thorp, William Blunt White Kerry P. Falco, Managing Director Maria A. Staffiere, Managing Director Ronald A. Sugameli, Managing Director and Chief Investment Officer Nicole M. Tremblay, Esq., Senior Vice President, Chief Compliance Officer As of publication date W a s h i n g t o n Tr u s t L o c a t i o n s Branch Offices HEADQUARTERS 23 Broad Street Westerly, RI 02891 401-348-1200 BLOCK ISLAND, RI Block Island Office Ocean Avenue Block Island, RI 02807 401-466-7710 CHARLESTOWN, RI Charlestown Office 4137 Old Post Road Charlestown, RI 02813 401-364-4000 CRANSTON, RI Oaklawn Avenue Office 1203 Oaklawn Avenue Cranston, RI 02920 401-732-0049 Plainfield Pike Office 2174 Plainfield Pike Cranston, RI 02921 401-383-8223 Reservoir Avenue Office 645 Reservoir Avenue Cranston, RI 02910 401-946-1004 EAST PROVIDENCE, RI East Providence Office 587 Taunton Avenue East Providence, RI 02914 401-383-8800 Rumford Office Opening 2015 330 Newport Avenue Rumford, RI 02916 401-228-6555 JOHNSTON, RI Johnston Office 1383 Atwood Avenue Johnston, RI 02919 401-654-4837 NARRAGANSETT, RI Bonnet Shores Office 885 Boston Neck Road Narragansett, RI 02882 401-782-4800 Sweet Meadows Office 20 Point Judith Road Narragansett, RI 02882 401-782-1000 NORTH KINGSTOWN, RI North Kingstown Office 7625 Post Road North Kingstown, RI 02852 401-295-4700 PROVIDENCE, RI East Side Office Opening 2015 229 Waterman Street Providence, RI 02903 Providence Office 156 Westminster Street Providence, RI 02903 401-421-3600 RICHMOND, RI Richmond Office 1200 Main Street Wyoming, RI 02898 401-539-2427 SOUTH KINGSTOWN, RI Wakefield Office 730 Kingstown Road Wakefield, RI 02879 401-782-4200 WARWICK, RI Centerville Road Office 236 Centerville Road Warwick, RI 02886 401-739-2353 Governor Francis Office 1473 Warwick Avenue Warwick, RI 02888 401-921-2500 WESTERLY, RI Main Office 23 Broad Street Westerly, RI 02891 401-348-1200 Franklin Street Office 126 Franklin Street Westerly, RI 02891 401-348-1367 McQuade’s Marketplace 106 Main Street Westerly, RI 02891 401-348-1201 SHARON, MA* One Merchant Street, Suite 102 Sharon, MA 02067 781-784-3089 *Operating as Washington Trust Mortgage Company Wealth Management Offices PROVIDENCE, RI 10 Weybosset Street, Suite 200 Providence, RI 02903 401-654-4801 NARRAGANSETT, RI 20 Point Judith Road Narragansett, RI 02882 401-782-1000 WESTERLY, RI 23 Broad Street Westerly, RI 02891 401-348-1238 WELLESLEY, MA Weston Financial Group Wellesley Office Park 100 William Street, Suite 200 Wellesley, MA 02481 781-235-7055 Customer Service Center RI: 401-348-1200 CT: 860-443-1508 Toll-free: 800-475-2265 Website www.washtrust.com Stocklist Symbol NASDAQ OMX®: WASH MYSTIC, CT McQuade’s Marketplace 14 Clara Drive Mystic, CT 06355 860-572-2058 Commercial Lending Offices PROVIDENCE, RI 10 Weybosset Street, Suite 100 Providence, RI 02903 401-331-5090 WARWICK, RI 236 Centerville Road Warwick, RI 02886 401-739-2353 WESTERLY, RI 23 Broad Street Westerly, RI 02891 401-348-1200 Mortgage Offices WARWICK, RI 171 Service Avenue Warwick, RI 02886 401-681-4224 DARIEN, CT 1025 Boston Post Road Darien, CT 06820 203-309-5571 GLASTONBURY, CT* 180 Glastonbury Boulevard, Suite 107 Glastonbury, CT 06033 860-430-9900 BRAINTREE, MA* 25 Braintree Hill Office Park, Suite 200 Braintree, MA 02184 781-930-3296 BURLINGTON, MA* 25 Mall Road, Suite 408 Burlington, MA 01803 781-229-2004 Stock Transfer and Dividend Disbursing Agent American Stock Transfer & Trust Company, 6201 15th Avenue, Brooklyn, NY 11219 800-852-0354 www.amstock.com The Corporation’s 2015 Proxy Statement, Form 10-K and Annual Report for 2014 are available online by visiting the Corporation’s website www.washtrustbancorp.com under SEC Filings, or by calling the Corporation’s toll-free number 800-475-2265 extension 1566, or by email at investor.relations@washtrust.com. Auditors KPMG LLP Counsel Goodwin Procter LLP Providence, Rhode Island Boston, Massachusetts The Corporation has an Affirmative Action Plan and is an Equal Opportunity Employer. Washington Trust is also a member of the FDIC and an Equal Housing Lender