2 0 1 6 A n n u a l R e p o r t
L e a d e r s h i p
Board of Directors
John J. Bowen, Chancellor, President and Chief Executive Officer,
Johnson & Wales University
Steven J. Crandall, Vice President, Ashaway Line & Twine Mfg. Co.
Robert A. DiMuccio, CPA, Chairman, President and Chief Executive
Officer, Amica Mutual Insurance Company
Edward O. Handy III, President and Chief Operating Officer,
Washington Trust Bancorp, Inc.
Barry G. Hittner, Esq., Retired Attorney
Katherine W. Hoxsie, CPA, Retired Vice President,
Hoxsie Buick-Pontiac-GMC Truck, Inc.
Joseph J. MarcAurele, Chairman and Chief Executive Officer,
Washington Trust Bancorp, Inc.
Kathleen E. McKeough, Retired Senior Vice President of Human
Resources, GTECH Holdings Corporation
Victor J. Orsinger II, Esq., Law Office of Victor J. Orsinger II
H. Douglas Randall III, Chief Executive Officer, Randall, Realtors,
Kinlin Grover Real Estate, Page Taft Real Estate,
Pequot Commercial and Kinlin Grover Commercial
Edwin J. Santos, Chairman, Prospect CharterCARE, LLC
John F. Treanor, Retired President and Chief Operating Officer,
Washington Trust Bancorp, Inc.
Officers of the Corporation
Joseph J. MarcAurele, Chairman and Chief Executive Officer
Edward O. Handy III, President and Chief Operating Officer
David V. Devault, Vice Chair, Secretary and Chief Financial Officer
Mark K. W. Gim, Senior Executive Vice President,
Wealth Management, and Treasurer
Maria N. Janes, CPA, Executive Vice President and Controller
The Washington Trust Company Directors’ Advisory Council
Alcino G. Almeida
Gary P. Bennett
Larry J. Hirsch
Joseph J. Kirby
Jacques de Laporte
Edward M. Mazze
James W. McCormick Jr.
Thomas F. Moore
Brendan P. O’Donnell
Joseph H. Potter
Joyce Olson Resnikoff
Patrick J. Shanahan Jr.
James P. Sullivan
Neil H. Thorp
John C. Warren
William Blunt White
Senior Management of The Washington Trust Company
Joseph J. MarcAurele, Chairman and Chief Executive Officer
Edward O. Handy III, President and Chief Operating Officer
David V. Devault, Vice Chair, Secretary and Chief Financial Officer
Mark K. W. Gim, Senior Executive Vice President,
Wealth Management, and Treasurer
Kristen L. DiSanto, Executive Vice President, Human Resources
Debra A. Gormley, Executive Vice President, Retail Banking
James M. Hagerty, Executive Vice President and
Chief Lending Officer
Maria N. Janes, CPA, Executive Vice President and Controller
Mary E. Noons, Executive Vice President, Retail Lending
William K. Wray Sr., Executive Vice President and Chief Risk Officer
Dennis L. Algiere, Senior Vice President, Chief Compliance Officer
and Director of Community Affairs
Colleen O. Anderson, Senior Vice President,
Wealth Management Support Services
Michael T. Clarkin, Senior Vice President and
Corporate Sales Manager
Joseph M. Confessore, Senior Vice President and Team Leader,
Commercial Banking
Laura L. Davis, Senior Vice President, Lending Support Services
Elizabeth B. Eckel, Senior Vice President, Marketing
Alfred L. Grant, Senior Vice President, Mortgage Origination
Barbara K. Hart, Senior Vice President, Credit Risk
Robert R. Kent Jr., Senior Vice President and Team Leader,
Commercial Banking
Charles R. Kineke, Senior Vice President, Chief Technology Officer
Thomas H. Klump, Senior Vice President, Bank Operations
James A. Mignone, Senior Vice President,
Chief Information Security Officer
C. Scott Ostrowski, Senior Vice President, Internal Audit
Timothy M. Pickering, Senior Vice President,
Commercial Real Estate Group
Kathleen A. Ryan, Esq., Senior Vice President,
Client Services and Trust and Estate Services
L. Peter Sheehan, Senior Vice President,
Wealth Management Investments
Julia Anne M. Slom, Senior Vice President and Team Leader,
Commercial Real Estate Group
Richard T. Tjader, Senior Vice President and
Director of Project Management
Weston Financial Group, Inc.
John W. Filoon III, President and Chief Operating Officer
Kerry P. Falco, CPA, Managing Director and
Senior Financial Counselor
Maria A. Staffiere, Managing Director
Ronald A. Sugameli, Esq., Managing Director and
Chief Investment Officer
Nicole M. Tremblay, Esq., Senior Vice President and
Chief Compliance Officer
Halsey Associates, Inc.
James S. Zoldy Jr., President
Kenneth J. Julian, Executive Vice President
As of publication date
M e s s a g e t o S h a r e h o l d e r s
We are proud to report that Washington Trust posted another
record performance in 2016; our seventh consecutive year of
increased annual earnings. Once again, it was a collective effort,
as our experienced management team and our talented
employees worked together and focused on achieving our
corporate goals. We were successful in growing our core
business lines and expanding our local and regional footprint,
while maintaining a disciplined approach to pricing and expense
management. All noteworthy accomplishments in a very
challenging operating environment.
Our record earnings reflect the strength and diversity of our
business model, as our ability to generate a consistent stream of
revenues, from both interest and non-interest income sources,
has been key to our success over time. In 2016 we achieved solid
performances from all of our major business lines:
• Our mortgage banking area had another great year, as
mortgage banking revenues were up significantly from the
previous year. We had good production from throughout the
region and generated a healthy mix of both purchase and
refinance loans. In July we opened a mortgage production
office in Wellesley, Massachusetts, an affluent suburb
of Boston.
• Our wealth management division once again proved to be
a key contributor to non-interest income, as wealth
management revenues reached a record level in 2016.
Wealth management assets under administration also
peaked to an all-time high by year-end. We continued to
make investments in technology to enhance our client
experience and position the division for future growth.
We recently relocated our Halsey Associates headquarters
to take advantage of opportunities and synergies with our
mortgage banking and commercial lending efforts in
the New Haven, Connecticut market.
• Our commercial lending group had good momentum and
consistent growth throughout the year, however, overall
growth was masked by heavy pay-offs. We generated quality
commercial real estate and commercial and industrial
loans, which resulted in new cash management and
commercial deposit relationships.
• Our retail banking area remains a key part of our
community banking model and we opened a contemporary
branch on the East Side of Providence in 2016 to expand
our presence in Rhode Island’s capital city. Deposits
surpassed the $3 billion mark, led by growth in low-cost
demand deposits and NOW accounts.
For more than 216 years, Washington Trust has served as a trusted
advisor for generations of depositors, borrowers and investors. Our
hallmark has been our five-star customer service. Technology
continues to change our industry, providing new and different
ways for us to serve our customers. In recent years we have
1.
2.
M e s s a g e t o S h a r e h o l d e r s
enhanced online, mobile, and telephone solutions to make banking
easier, faster, and more secure for our customers. In 2016 we
introduced several new technology-based customer conveniences,
including EMV chip debit cards, online mortgage applications,
wealth management portal upgrades, and Touch ID and Quick
Balance mobile banking solutions. Going forward, we expect
technology will bring even more changes to our industry and we
will continue to evaluate and offer those solutions that provide the
best security, service, and convenience for our customers.
Washington Trust has a long and successful history and our 2016
performance once again ranks us among the nation’s top-performing
mid-sized banks. We are pleased to have provided consistent returns
and paid a healthy dividend to our shareholders. We appreciate the
hard work and dedication of our management team and employees
and thank our shareholders for their continued support and
commitment to our Corporation.
Joseph J. MarcAurele
Chairman and Chief Executive Officer
Edward O. Handy III
President and Chief Operating Officer
3.
4.
8.
7.
6.
5.
F i n a n c i a l H i g h l i g h t s
Net Income
$40.8
$43.5
$46.5
Cash Dividends
Declared Per Share
$1.36
$1.46
$1.22
Closing Stock Price
$56.05
$40.18
$39.52
2014
2015
2016
2014
2015
2016
2014
2015
2016
In Millions
In Dollars
Year-end; In Dollars
Total Revenues*
Total Loans
Total Deposits
$151.0
$162.3
$175.6
$2.9
$3.0
$3.2
$2.8
$2.9
$3.1
2014
2015
2016
2014
2015
2016
2014
2015
2016
In Millions
Other*
Mortgage Banking Revenue
Wealth Management Revenues
Net Interest Income
Year-end; In Billions
Consumer
Residential
Commercial
Year-end; In Billions
Time Deposits
Money Market & Savings
Demand & NOW
Wealth Management
Assets Under Administration
Mortgage Originations
$5.8
$6.1
$5.1
$700.3
$758.7
$865.3
2014
2015
2016
2014
2015
2016
Year-end; In Billions
Including Brokered Loans as Agent;
In Millions
*Excludes $7.6 million of net gain on sale and pre-sale revenue from merchant processing service business line in 2014.
F i n a n c i a l H i g h l i g h t s
Note: Font and layout of the information in this file are to be determined by E. Eckel.
Financial Highlights
Dollars in thousands, except per share amounts
Financial Condition
Total assets
Total securities
Total loans
Allowance for loan losses
Total deposits
Total shareholders’ equity
Book value per share
Total risk-based capital ratio
Equity to assets
Operating Results
Net interest income
Provision for loan losses
Wealth management revenues
Mortgage banking revenues
Net income
Diluted earnings per common share
Cash dividends declared per share
Return on average assets
Return on average equity
Net interest margin (taxable equivalent basis)
Asset Quality
Nonperforming assets to total assets
Total past due loans to total loans
Allowance for loan losses to total loans
Net loan charge-offs to average loans
2016
At or for the years ended December 31,
2014
2015
2013
2012
$4,381,115
755,545
3,234,371
26,004
3,063,752
390,804
22.76
12.26%
8.92%
$3,771,604
395,067
3,013,127
27,069
2,934,255
375,388
22.06
12.58%
9.95%
$3,586,874
382,884
2,859,276
28,023
2,754,818
346,279
20.68
12.56%
9.65%
$3,188,867
422,808
2,462,884
27,886
2,505,321
329,646
19.84
13.29%
10.34%
$3,071,884
415,879
2,294,003
30,873
2,312,631
295,652
18.05
13.26%
9.62%
$110,478
5,650
37,569
13,183
46,481
2.70
1.46
1.16%
11.96%
3.02%
$103,982
1,050
35,416
9,901
43,465
2.54
1.36
1.19%
12.00%
3.12%
$99,505
1,850
33,378
7,152
40,824
2.41
1.22
1.23%
11.87%
3.28%
$91,785
2,400
31,825
13,293
36,153
2.16
1.03
1.17%
11.65%
3.28%
$90,696
2,700
29,641
14,148
35,074
2.13
0.94
1.16%
11.97%
3.29%
0.53%
0.76%
0.80%
0.21%
0.58%
0.58%
0.90%
0.07%
0.48%
0.63%
0.98%
0.07%
0.62%
0.89%
1.13%
0.23%
0.83%
1.22%
1.35%
0.07%
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 2017 Proxy Statement, Form 10-K and Annual Report for 2016 are available
online by visiting the Corporation’s website www.washtrustbancorp.com/proxy,
by calling the Corporation’s toll-free number 800-475-2265 extension 1566,
or by email at investor.relations@washtrust.com.
Auditors: KPMG, LLP, Providence, Rhode Island
Counsel: Goodwin Procter LLP, Boston, Massachusetts
This report contains certain statements that may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Secu-
rities Exchange Act of 1934, as amended. Actual results, performance or achievements of Washington Trust may differ materially from those discussed in these forward-looking statements, as a result of,
among other factors, the factors described under the caption “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as filed with the Securities and
Exchange Commission and updated by our Quarterly Reports on Form 10-Q. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause
these differences. These forward-looking statements were based on information, plans and estimates at the date of this report, and Washington Trust assumes no obligation to update forward looking
statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
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
COVENTRY, RI
Coventry Office
Opening 2017
732 Tiogue Avenue
Coventry, RI 02816
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
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
229 Waterman Street
Providence, RI 02906
401-443-2800
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
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
NEW HAVEN, CT
Halsey Associates
One Century Tower
265 Church Street, Suite 1006
New Haven, CT 06510
203-772-0740
Customer Solutions Center
RI: 401-348-1200
CT: 860-443-1508
Toll-free: 800-475-2265
Websites
www.washtrustbancorp.com
www.washtrust.com
www.washtrustmortgage.com
www.washtrustwealth.com
www.westonfinancial.net
www.halseyassociates.com
Ticker Symbol
NASDAQ: WASH
MYSTIC, CT
McQuade’s Marketplace
14 Clara Drive
Mystic, CT 06355
860-572-2058
Commercial Banking 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 309
Braintree, MA 02184
781-428-7970
BURLINGTON, MA*
25 Mall Road, Suite 408
Burlington, MA 01803
781-229-2004
SHARON, MA*
One Merchant Street, Suite 102
Sharon, MA 02067
781-784-3089
WELLESLEY, MA*
62 Walnut Street, Suite 102
Wellesley, MA 02481
781-489-3175
*Operating as Washington Trust Mortgage Company
Parent Company of The Washington Trust Company
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
1. Our Annual Peanut Butter Drive helps feed local families in need; collecting almost 120 tons of peanut butter over the past 16 years. 2. Our mortgage
team helps homeowners, from throughout the southern New England region, secure home financing. 3. Our employees serve as “trusted advisors,” offering
important information on financial matters and topics of interest. 4. Networking and business development activities enable us to develop relationships with
new clients and key centers of influence. 5. We are recognized as one of Rhode Island’s “Best Places to Work,” earning the Providence Business News award
for the sixth consecutive year. 6. Our annual Community Shred-it Day is an important fraud protection event, offering a safe and free method to dispose of
confidential information. 7. Our commercial lending team provides millions of dollars in financing to businesses throughout our market area. 8. Members of
executive management serve in a leadership capacity for major organizations and groups within our region and the industry.