2 0 1 8 A n n u a l R e p o r t
L e a d e r s h i p
Washington Trust Bancorp, Inc.
Board of Directors
John J. Bowen, Chancellor Emeritus, 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.
Constance A. Howes, Esq., Retired Healthcare Executive
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
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
The Washington Trust Company Directors’ Advisory Council
Alcino G. Almeida
Gary P. Bennett
Larry J. Hirsch
Barry G. Hittner
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
F i n a n c i a l H i g h l i g h t s
Net Income
$68.4
Diluted Earnings Per
Common Share
$3.93
$46.5
$45.9
$2.70
$2.64
2016
2017
2018
2016
2017
2018
In Millions
Cash Dividends
Declared Per Share
$1.76
$1.46
$1.54
2016
2017
2018
Total Loans
$3.7
$3.2
$3.4
8%
37%
55%
Revenues
$184.3
$194.4
$175.6
7%
5%
20%
68%
2016
2017
2018
In Millions
Net Interest Income
Mortgage Banking
Revenue
Wealth Management
Revenues
Other
Total Deposits
$3.1
$3.2
$3.5
36%
29%
35%
2016
2017
2018
Year-end; In Billions
Commercial
Residential
Consumer
2016
2017
2018
Year-end; In Billions
Money Market
& Savings
Demand
& NOW
Time Deposits
L e t t e r t o S h a r e h o l d e r s
Washington Trust delivered strong 2018 results as we reported record earnings, reached $5 billion in total assets for the first time in our
history, and posted all-time high levels of deposits and loans. These achievements are testaments to our continued success in growing our key
business lines and expanding our presence throughout the region. Our record 2018 performance once again places us among the top mid-
sized banks in the Northeast and nationwide.
Total deposits reached $3.5 billion at year-end, thanks to effective product promotions, cash management efforts, and continued branch ex-
pansion. Deposit generation is critical to future loan growth and is highly competitive in our marketplace. We acted quickly when the Federal
Reserve increased interest rates, offered attractive certificates of deposit, and garnered a healthy share of new deposits. Branch expansion has
also been a key source of new deposits and we deployed this strategy once again in January 2019 by opening a branch in North Providence,
Rhode Island. Washington Trust continues to rank third in deposit market share in Rhode Island, behind two much larger, nationally-char-
tered financial institutions.
Double-digit percentage growth in both residential mortgages and commercial loans brought us to $3.7 billion in total loans at year-end.
Commercial loans topped the $2 billion mark for the first time in our 218-year history, led by solid production from our commercial real es-
tate and commercial and industrial areas. Our mortgage banking area had solid production throughout the year, despite four Federal Reserve
interest rate hikes in 2018, which slowed homebuying nationwide. We implemented new programs and processes to ensure that our mortgage
banking model is sustainable and will continue to serve as a good source of revenue for the Company.
Assets under management stood at $5.9 billion at December 31, 2018. Recent market volatility and economic uncertainty has created many
challenges for both investors and financial advisors. We remain committed to working with our clients to advise them about risks and op-
portunities, and to help them plan accordingly. In 2018, we introduced a new client portal for our Wealth Management Rhode Island clients,
providing them with access to their accounts online and through mobile devices. This technology, coupled with a new client service team
approach dedicated to providing personal attention from portfolio, investment, and key team members, has helped improve the overall client
experience.
As always, Washington Trust and its employees remain committed to the communities in which we live and work. Our employees continue to
log hundreds of volunteer hours at organizations throughout our region, and they once again contributed to making Washington Trust one
of the largest supporters of The United Way of Rhode Island.
Washington Trust continues to be recognized as one of the best banks in its class, being named American Banker’s “Top-Performing Mid-Ti-
er Bank” for the 5th consecutive year, earning Bank Director’s “Bank Performance Score Card” for the 6th consecutive year, and receiving
one of Providence Business News’ “Best Places To Work” award for the 8th consecutive year.
We are grateful for the ongoing support of our shareholders and were pleased to introduce the Investor Choice Dividend Reinvestment &
Direct Stock Purchase Plan earlier this year. This enhanced dividend reinvestment plan provides our shareholders with greater flexibility and
additional benefits, including the ability to purchase additional Washington Trust shares through American Stock Transfer, with no fees or
broker’s commissions. We encourage you to learn more about the Plan to take full advantage of the many benefits it offers.
As always, thank you for your investment in Washington Trust. It is a privilege to lead your company.
Sincerely,
Edward O. Handy III
Chairman & Chief Executive Officer
Q u e s t i o n & A n s w e r
In March 2018, Edward “Ned” Handy was appointed Washington
Trust’s new Chairman and Chief Executive Officer and Mark Gim
was named the corporation’s President and Chief Operating Officer.
Here are a few of their thoughts on Washington Trust and the
financial services industry.
Why should a customer bank with Washington Trust?
Ned Handy: At Washington Trust you will get solutions tailored to your
needs at every stage of your life, from people who truly care about your
financial security. We listen, provide solutions, and ensure timely deliv-
ery across a broad array of capabilities. We recognize that every custom-
er is interested in building financial independence and wealth, and it’s
our job to help them achieve that goal.
Mark Gim: We’ve been trusted advisors for generations and have continued to stay true to our core values of quality, integrity, and
community. At the same time, we recognize that the world around us will change more in the next 10 years than it did in the last
two centuries. We are vigilant about making sure our solutions are relevant and deliver value.
What makes Washington Trust different from other banks?
Ned: We offer the comprehensive services available at larger financial institutions with the flexibility and responsiveness provided
by smaller banks and credit unions. But, most importantly, we’re different because of our people. Our employees are passionate
about delivering solutions to help our customers reach their financial goals.
Mark: In a world where large online corporations determine what a customer needs based on an algorithm, we believe human
interaction and expert guidance are more important than ever.
“... We consistently deliver
outstanding products and
individualized services to
our customers, with
the belief that good results
will follow ...”
- Mark Gim,
Washington Trust
President & COO
How does Washington Trust employ technology to service its customers?
Ned: We provide the banking conveniences that our customers want and expect in
today’s digital world and will continue to invest in technology that enhances the
customer experience. However, technology has not replaced the personalized service
our customers receive at Washington Trust.
Mark: Our business model has become even stronger and more sustainable be-
cause we offer both a digital and personal experience. Many people still want to sit
face-to-face with a banker when they are making a significant financial decision
such as buying a home or planning for retirement. Our employees are trusted
advisors who take the time to understand our customers’ needs and then tailor a
solution specifically for them. Technology gives customers greater accessibility to
conduct banking and monitor their finances after hours.
Washington Trust has had significant expansion in the past 20 years. What
are the Corporation’s future growth plans?
Ned: We have the capacity to grow all our business lines well into the future.
Branch expansion has been a proven strategy for attracting new customers and we
will continue to open branches in the Rhode Island communities where we have a
strong brand reputation.
Q u e s t i o n & A n s w e r
Mark: Another component of our growth strategy is our ability to deepen existing customer relationships. In January 2019, we
launched a Private Client Group dedicated to offering a wide range of financial solutions to business owners, executives, and high
net worth individuals. They will provide tailored solutions from a single touchpoint while creating a holistic client experience.
Washington Trust has consistently delivered solid shareholder value over time. What’s the secret?
Ned: I don’t think there is a secret as much as it is our focus. We have been committed to improving our internal processes and
overall efficiency, while enhancing the customer experience. This focus has created genuine value.
Mark: It’s not always easy to improve profits. However, we consistently deliver outstanding products and individualized services to
our customers, with the belief that good results will follow…and that proved true again in 2018.
Washington Trust has been recognized as a top employer for several years. What do you attribute that to?
Ned: We have been named one of the Best Places to Work in Rhode Island for eight consecutive years by the Providence Business
News. I think that reflects how our people enjoy their jobs and appreciate the
opportunities we have provided them with to advance their careers and maintain a
good work-life balance.
Mark: There’s a strong link between making a difference in a customer’s life and
enjoying your job. If our employees come to work each day with the intent of
making our customers happy, everyone benefits – the customer, the employee, the
company, and the shareholder. We win by solving the customer’s financial needs,
not by pushing product. That has been true since we opened our doors in 1800.
Washington Trust has a long history but has successfully remained true to its
community banking roots. Why is that important?
Ned: Community is one of our core values. Our success is intertwined with the
communities we serve, so we have a huge vested interest in helping them grow and
prosper.
Mark: It’s worth noting that most of our employees volunteer each year. We’re
attracting people who want to give something back to their community and are
pleased to work for a company whose values align with their own. Whether our
employees are offering financial guidance, serving on boards, or rolling up their
sleeves and pitching in on projects that are important to them, we’re here to meet
the needs of our neighbors.
“We recognize that every
customer is interested in
building financial
independence and wealth,
and it’s our job to help
them achieve that goal.”
- Ned Handy,
Washington Trust
Chairman & CEO
Washington Trust is celebrating its 219th year in business. What’s the significance of that milestone?
Ned: We’ve been around for a long time and people like doing business with the oldest community bank in the United States.
History is an important differentiator and will remain so, but only if our products and services are attuned to our customers’ needs.
Mark: Our strength and stability for more than 200 years, in good times and bad, gives people the peace of mind knowing that
we’ve seen it all and the confidence that we will be here to help them in the future.
F i n a n c i a l H i g h l i g h t s
In millions, except per share and ratio data
2018
2017
2016
At or for the years ended December 31,
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
Other noninterest income
Total noninterest expenses
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
$5,010.8
938.2
3,680.4
27.1
3,524.0
448.2
25.90
12.56%
8.94%
$132.3
1.6
38.3
10.4
13.5
106.2
86.7
18.3
68.4
3.93
1.76
1.46%
16.20%
3.01%
0.28%
0.37%
0.74%
0.03%
$4,529.9
793.5
3,374.1
26.5
3,242.7
413.3
23.99
12.45%
9.12%
$119.5
2.6
39.3
11.4
14.1
104.1
77.6
31.7
45.9
2.64
1.54
1.04%
11.23%
2.93%
0.34%
0.59%
0.79%
0.06%
$4,381.1
755.5
3,234.4
26.0
3,063.8
390.8
22.76
12.26%
8.92%
$110.5
5.7
37.6
13.2
14.4
101.1
68.9
22.4
46.5
2.70
1.46
1.16%
11.94%
3.02%
0.53%
0.76%
0.80%
0.21%
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,
2018, 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.
S h a r e h o l d e r I n f o r m a t i o n
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 2019 Proxy Statement, Form 10-K and Annual Report for 2018
are available online by visiting the Corporation’s website
ir.washtrust.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
Investor Choice Dividend Reinvestment &
Direct Stock Purchase and Sale Plan
• Apply cash dividends towards the purchase of additional WASH shares with no
minimum amount, and without a fee or broker’s commission.
• Purchase additional WASH shares through AST without a fee or broker’s
commission:
- Invest as little as $25 or as much as $10,000 per transaction
- Purchase shares by check or by direct debit of your bank account
- Make a one-time investment, or set up recurring transfers from your
bank account
- Invest any dollar increment you choose - no need to purchase whole shares
- Make your investment at any time
• Sell or transfer WASH shares held in the Plan directly through AST, without going
through an outside broker. See enclosed brochure for applicable fees.
• Complete share transactions through AST’s secure online website.
• Deposit WASH shares you currently own in stock certificate form into the Plan
for safekeeping.
• Access your WASH shareholder account via AST’s secure online client portal to
view statements, tax forms, transaction history, and more.
Visit www.astfinancial.com, or contact our Plan Administrator at
800-852-0354 for more information.
E x e c u t i v e L e a d e r s h i p
The Washington Trust Company
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
Debra A. Gormley,
Executive Vice President and Chief Retail Banking Officer
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, Chief Retail Lending Officer
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
Elizabeth B. Eckel,
Senior Vice President, Chief Marketing and Communications Officer
C. Scott Ostrowski,
Senior Vice President and Chief Audit Executive
As of publication date
On the cover
Ned Handy, Washington Trust Chairman and CEO, was joined by more than 50 Washington Trust executive leaders,
senior managers, and employees to ring the NASDAQ opening bell and celebrate 218 years of service as the oldest
community bank in the nation. Founded in 1800, Washington Trust was already 171 years old when, in 1971, NASDAQ
began trading as the world’s first electronic stock market. 13 years later, in 1984, Washington Trust Bancorp, Inc.
started trading on the NASDAQ market under the symbol WASH.
Photography courtesy of Libby Greene/Nasdaq, Inc.
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
NORTH PROVIDENCE, RI
North Providence Office
1588 Mineral Spring Avenue
North Providence, RI 02904
401-473-2921
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
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
ir.washtrust.com
www.washtrust.com
www.washtrustmortgage.com
www.washtrustwealth.com
www.westonfinancial.net
www.halseyassociates.com
Ticker Symbol
NASDAQ: WASH
McQuade’s Marketplace
106 Main Street
Westerly, RI 02891
401-348-1201
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
GLASTONBURY, CT*
200 Glastonbury Boulevard, Suite 203
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
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.