2 0 1 7 A n n u a l R e p o r t
M e s s a g e t o S h a r e h o l d e r s
banking, wealth management, and trust
services – has been the key to our continued
success, allowing us to generate a diverse
stream of earnings in all economic cycles.
We reached a record $3.2 billion in total
deposits at year-end with solid increases in
demand deposit accounts. Branch expansion
contributed to deposit growth by helping us
attract and build customer relationships in
2017 was another good year for Washington
new markets. In November 2017, we opened
Trust, as we reached a record level of total
a branch in Coventry, RI, providing full-service
loans, total deposits and wealth manage-
banking and added convenience to customers
ment assets under administration. Earnings
and businesses in the central part of the state.
were solid, as net income for the year ended
While Washington Trust continued to rank
December 31, 2017 totaled $45.9 million,
third, behind Bank of America and Citizens,
or $2.64 per diluted share. Income before
in Rhode Island deposit market share, our
income taxes for 2017 amounted to $77.6
expanded branch network and strong brand
million, up by 13% over 2016. Capital levels
reputation helps us compete against these
remained healthy and continued to exceed
larger, national institutions.
regulatory requirements.
Mortgage lending had another successful
On December 22, 2017, the Tax Cuts and
year, recording the second highest production
Jobs Act (the “Tax Act”) was signed into law,
level in Washington Trust’s 217-year history.
permanently lowering the corporate federal
While mortgage activity was steady through-
income tax rate from 35% to 21%, effective
out the region, our Massachusetts loan
January 1, 2018. The enactment of the Tax
production offices had an exceptionally good
Act in 2017 required companies to revalue
year. Personal service is a key part of our
and reassess deferred tax assets and liabilities
mortgage banking model and recent efforts
reflecting the new federal income tax rate.
to attract seasoned lending professionals
As a result, in the fourth quarter of 2017,
and implement new technology have helped
Washington Trust’s net deferred tax assets
improve our internal processing and the
were written down by a non-cash charge of
delivery of service to our customers. Mortgage
$6.2 million, with a corresponding increase to
banking generates significant revenues for the
income tax expense. This write-down reduced
Corporation, so future growth is dependent
2017 earnings per diluted share by $0.36.
on developing new programs and strategies
to broaden our customer base. In 2017 we
Washington Trust’s overall performance con-
introduced I Luv Rhode Island Community
tinues to rank us high among banks of similar
Lending, an innovative affordable housing
size in both the Northeast region and nation-
program designed to help low-to-moderate
wide. Our unique business model – personal
income borrowers achieve home ownership.
banking, mortgage banking, commercial
M e s s a g e t o S h a r e h o l d e r s c o n t ’ d
Our commercial lending area had another
One of the Corporation’s core values is
Financial Officer and Secretary, after 31 years
good year, generating new commercial and
“community,” and Washington Trust (and our
with Washington Trust. David played a key
industrial loans and commercial real estate
employees) actively supports the communities
role in the Corporation’s growth and success
deals throughout the region. Our commercial
in which we live and work through financial
over time and deserves our utmost apprecia-
portfolio exhibited good diversity and our
donations and voluntary support. In May
tion for his personal and professional commit-
credit quality remained pristine. The com-
2017, more than 100 employees participated
ment and unparalled work ethic.
mercial team works in close partnership with
in the 1st Annual Washington Trust Statewide
the cash management area to build client
Beach Cleanup, beautifying eight Rhode
Washington Trust begins a new chapter in
relationships. In 2017, our cash management
Island State beaches in preparation for the
2018 with a new executive leadership team at
team attracted a significant number of new
summer tourist season. We held our 17th
the helm. Upon my retirement in March, I will
commercial deposits from commercial and
Annual Peanut Butter Drive to help stock the
continue to serve as a member of Washing-
institutional clients.
local food banks’ shelves and feed hungry
ton Trust’s board of directors, Ned Handy will
families. Our Charitable Foundation contribut-
assume my position as Chairman and Chief
Wealth management had a record 2017, as
ed to a number of notable causes, including
Executive Officer, and Mark Gim will become
wealth management revenues amounted to
the Station Fire Memorial Foundation and
President and Chief Operating Officer. They
an all-time high $39.3 million. A robust stock
the Westerly Higher Education and Job Skills
will be joined by Ron Ohsberg, who succeed-
market and market appreciation contribut-
Center.
ed to a record $6.7 billion in assets under
ed David Devault. I am confident that Ned,
Mark, Ron, and the entire leadership team
administration at year-end. Throughout 2017,
In appreciation of our employees’ hard work
will continue to guide the Corporation by
our wealth management and technology
and dedication, and as a result of the antici-
the same core values and principles that have
teams worked diligently to implement and
pated reduction in corporate taxes from the
been key to our success for more than 217
test a new integrated wealth management
Tax Act, Washington Trust provided special
years. We remain committed to our custom-
platform, which will be introduced in April
employee compensation enhancements in
ers, employees, and shareholders and thank
2018. The platform features a portal which
January 2018.
you for your continued support.
will provide clients with a comprehensive view
of their investment accounts. The portal is
Washington Trust received numerous acco-
accessible both online and through a mobile
lades both locally and nationally. We were
application and promises to deliver positive
named one of the Best Places to Work in
client experiences.
Rhode Island by Providence Business News
for the 7th consecutive year. We received the
We undertook several key technological
Exemplary Worksite Health Award from Blue
initiatives in 2017, as we sought to enhance
Cross & Blue Shield of Rhode Island and the
the customer experience across all delivery
Greater Providence Chamber of Commerce
channels, reduce enterprise risk and improve
for effective programs encouraging employ-
internal processes. In October 2017, a team
ee health and well-being. Keefe, Bruyette &
of more than 100 employees successfully
Woods, Inc. named Washington Trust Ban-
conducted a data migration of our in-house
corp, Inc. to its “Bank Honor Roll” of superior
core operating system to an externally hosted
performers for the 6th consecutive year.
environment. The spirit of cooperation among
the team was critical to ensuring the project
In September 2017, we announced the
was completed on time and on budget.
planned retirement in January 2018 of David
Devault, who served as Vice Chair, Chief
Joseph J. MarcAurele
Chairman and Chief Executive Officer*
Washington Trust’s New Executive Leadership Team,
pictured left to right: Mark Gim, President and Chief
Operating Officer; Ned Handy, Chairman and Chief
Executive Officer; and Ron Ohsberg, Senior Executive
Vice President, Chief Financial Officer and Treasurer.
F i n a n c i a l H i g h l i g h t s
Net Income
Cash Dividends Declared Per Share
$43.5
$46.5
$45.9
$1.36
$1.46
$1.54
2015
2016
2017
2015
2016
2017
In Millions
In Dollars
Total Revenues
Total Loans
Total Deposits
$162.3
$175.6
$184.3
$3.0
$3.2
$3.4
$2.9
$3.1
$3.2
2015
2016
2017
2015
2016
2017
2015
2016
2017
In Millions
Year-end; In Billions
Year-end; In Billions
Mortgage Banking Revenue
Other
Wealth Management Revenues
Net Interest Income
Consumer
Residential
Commercial
Time Deposits
Money Market & Savings
Demand & NOW
Mortgage Originations
$758.7
$865.3
$852.6
Wealth Management
Assets Under Administration
$5.8
$6.1
$6.7
2015
2016
2017
2015
2016
2017
Including Brokered Loans as Agent; In Millions
Year-end; In Billions
F i n a n c i a l H i g h l i g h t s c o n t ’ d
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
2017
At or for the years ended December 31,
2014
2015
2016
2013
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
Income before income taxes
Income tax expense
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
$4,529,850
793,495
3,374,071
26,488
3,242,707
413,284
23.99
12.45%
9.12%
$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%
$119,531
2,600
39,346
11,392
77,640
31,715
45,925
2.64
1.54
1.04%
11.26%
2.93%
$110,478
5,650
37,569
13,183
68,854
22,373
46,481
2.70
1.46
1.16%
11.96%
3.02%
$103,982
1,050
35,416
9,901
64,343
20,878
43,465
2.54
1.36
1.19%
12.00%
3.12%
$99,505
1,850
33,378
7,152
59,823
18,999
40,824
2.41
1.22
1.23%
11.87%
3.28%
$91,785
2,400
31,825
13,293
52,680
16,527
36,153
2.16
1.03
1.17%
11.65%
3.28%
0.34%
0.59%
0.79%
0.06%
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%
Stock Transfer and Dividend Disbursing Agent:
American Stock Transfer & Trust Company
6201 15th Avenue
Brooklyn, NY 11219
800-852-0354
www.astfinancial.com
The Corporation’s 2018 Proxy Statement, Form 10-K and Annual Report for 2017
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 Securities 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, 2017, 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 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, Chairman and Chief Executive 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, Retired 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,
The Randall Family of Companies, Kinlin Grover, Pequot Commercial,
Page Taft & Randall
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, Retired Chairman and Chief Executive Officer*
Edward O. Handy III, Chairman and Chief Executive Officer*
Mark K. W. Gim, President & Chief Operating Officer*
Ronald S. Ohsberg, Senior Executive Vice President,
Chief Financial Officer and Treasurer
Kristen L. DiSanto, Senior Executive Vice President,
Chief Human Resources Officer and Corporate Secretary
Maria N. Janes, CPA, Executive Vice President and Controller
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
Kathleen A. Ryan, Esq., Executive Vice President
and Chief Wealth Management 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
Thomas H. Klump, Senior Vice President
and Chief Information Officer
James A. Mignone, Senior Vice President and
Chief Information Security Officer
C. Scott Ostrowski, Senior Vice President, Internal Audit
Timothy M. Pickering, Senior Vice President,
Commercial Real Estate Group
L. Peter Sheehan, Senior Vice President,
Wealth Management Strategy and 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
The Washington Trust Company Directors’ Advisory Council
Alcino G. Almeida
Gary P. Bennett
Larry J. Hirsch
Joseph J. Kirby
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
Weston Financial Group, Inc.
John W. Filoon III, President and Chief Operating Officer
Kerry P. Falco, CPA, Managing Director
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
Senior Management of The Washington Trust Company
Joseph J. MarcAurele, Retired Chairman and Chief Executive Officer*
Edward O. Handy III, Chairman and Chief Executive Officer*
Mark K. W. Gim, President and Chief Operating Officer*
Ronald S. Ohsberg, Senior Executive Vice President,
Chief Financial Officer and Treasurer
Kristen L. DiSanto, Senior Executive Vice President,
Chief Human Resources Officer and Corporate Secretary
William K. Wray Sr., Senior Executive Vice President
and Chief Risk Officer
Halsey Associates, Inc.
James S. Zoldy Jr., President
Kenneth J. Julian, Executive Vice President
*As of March 2, 2018
L o c a t i o n s
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
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
732 Tiogue Avenue
Coventry, RI 02816
401-262-3690
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
Parent Company of The Washington Trust Company
The Corporation has an Affirmative Action Plan and is an Equal Opportunity Employer.
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.
Washington Trust is also a member of the FDIC and an Equal Housing Lender.