Washington Trust Bancorp
Annual Report 2020

Plain-text annual report

2020 ANNUAL REPORT CHAIRMAN’S MESSAGE There are many words we could use to describe 2020: disruptive, challenging, unprecedented...but at the same time, the past year has been inspiring, collaborative, and hopeful. Washington Trust has weathered many storms over the past two centuries and has remained a cornerstone - always there to help our customers and communities through difficult times. In 2020 we rose to the challenges presented by the COVID-19 pandemic; our employees stood strong, we embraced change, and proactively became a part of the solution. Our employees are the heart and soul of our Corporation and I have the utmost pride in their efforts, as they helped us continue to create additional value in the Washington Trust franchise in 2020, despite tremendous odds. While the pandemic unleashed dramatic market fluctuations and disrupted just about every aspect of our economy, the strength and resilience of the Washington Trust business model prevailed. Our balance sheet continued to provide a diverse stream of earnings and we delivered record full-year earnings of $69.8 million, or $4.00 per diluted share. Other key highlights for the year included: • Total deposits were up 25% from 2019 levels, led by • strong in-market deposit growth Loans totaled $4.2 billion, up 8% from the end of 2019, with contributions from 1,782 loans originated for the Paycheck Protection Program (PPP) • Mortgage banking revenues totaled $47.4 million, up 220% from 2019, as both the volume of mortgage originations and sales reached record highs • Wealth management assets under administration reached a record $6.9 billion, up 10% from 2019 levels • We announced an increased dividend during the fourth quarter, and continued a 100+ year consecutive quarterly dividend payment These results would be considered a triumph in any year, but amid a pandemic, they are truly a testament to the spirit continued on next page Edward O. Handy III, Chairman and Chief Executive Officer Net Income (In Millions) $68.4 $69.1 $69.8 2018 2019 2020 Diluted Earnings (Per Common Share; In Dollars) $3.93 $3.96 $4.00 2018 2019 2020 1 CHAIRMAN’S MESSAGE cont’d and resilience of our dedicated team of employees who maintained high service levels; the strength, stability and improvement of our balance sheet; the multiple facets of our business, which during a time with continued low interest rates and an uncertain operating environment, enabled us to achieve these earnings; and the loyalty and perseverance of our customers who have trusted us to help them through these difficult times. Over the past year, Washington Trust fundamentally trans- formed the way we serve our customers, while skillfully maintaining the personalized service for which we are known. Thanks to business continuity measures put in place prior to 2020, we were prepared for this crisis and able to shift to off-site operations practically overnight. Strategic technolog- ical investments made in recent years enabled us to transi- tion business operations quickly, securely, and flawlessly to a remote working environment. We changed the way we do business company-wide, creating new processes and protocols to ensure the customer experience was seamless across all delivery channels and customer touchpoints. Our employees put in extra hours to meet critical customer needs - everyone stepped outside their workday comfort zones to lend a hand wherever and whenever it was needed. We provided solutions to meet our customers’ financial needs through drive-thru, digital and telephone banking, and we maintain ongoing communications via email, telephone, web portals and video conferences. And, although every element of service before the pandemic was transformed, in ways we never conceived of, our branch, mortgage, consumer, commercial, and operations teams con- tinued on-site processing and closing loans at a remarkable pace and in historic numbers. Our success in 2020 was driven by the same principles that have guided our Corporation since 1800: our commitment to doing the right thing, for our employees, our customers, our community and for you, our shareholders. And, at the heart of that commitment are the human connections we have with one another, which we believe are more important now Cash Dividends (Declared Per Share; In Dollars) $2.00 $2.05 $1.76 2018 2019 2020 Total Loans (Year-end; In Billions) $3.7 $3.9 $4.2 7% 35% 58% 2018 2019 2020 Commercial Residential Consumer Total Deposits (Year-end; In Billions) $3.5 $3.5 $4.4 30% 31% 39% 2018 2019 2020 Demand & NOW Money Market & Savings Time Deposits continued on next page 2 CHAIRMAN’S MESSAGE cont’d than ever in this digital age and times of social distancing. Although technology allows us to do many things remotely, personal contact and communication have become paramount in keeping people healthy and safe - personally, professionally, and financially. Our Corporation’s performance and culture truly set us apart, and in 2020, it was an honor to be recognized by our industry colleagues and peers. For the second consecutive year, Washington Trust was the only Rhode Island bank to appear on Forbes magazine’s list of Best In-State Banks. For the 10th consecutive year, we were named one of Rhode Island’s Best Places to Work by Providence Business News. And, American Banker® magazine included us in their annual list of the nation’s Best Banks to Work For, the only Rhode Island-based institution so named. We enter 2021 with a restored sense of hope, knowing that, while the pandemic and economic uncertainty continue, Washington Trust has become an even stronger, more resilient, and versatile Corporation. We appreciate your support and remain committed to enhancing your value in Washington Trust. Revenues (In Millions) $194.4 $200.5 $226.9 7% 21% 16% 56% 2018 2019 2020 Net Interest Income Mortgage Banking Revenues Wealth Management Revenues Other Wealth Management Assets Under Administration (Year-end; In Billions) $5.9 $6.2 $6.9 Sincerely, 2018 2019 2020 Edward “Ned” O. Handy III Chairman & Chief Executive Officer Mortgage Originations (Includes Brokered Loans as Agent; In Millions) $1,674 $763 $945 2018 2019 2020 3 FINANCIAL HIGHLIGHTS In thousands, except per share and ratio data Financial Condition Total assets Total securities Total loans Allowance for credit losses on loans* Total deposits Total shareholders’ equity Book value per share Total risk-based capital ratio Equity to assets Operating Results Net interest income Provision for credit losses* Wealth management revenues Mortgage banking revenues Other noninterest income Total noninterest expenses Income before income taxes Income tax expense Net income Earnings per common share – diluted Cash dividends declared per share Return on average assets Return on average equity Net interest margin (taxable equivalent basis) At or for the years ended December 31, 2018 2020 2019 $5,713,169 894,571 4,195,990 44,106 4,378,353 534,195 30.94 13.51% 9.35% $5,292,659 899,490 3,892,999 27,014 3,498,882 503,492 29.00 12.94% 9.51% $5,010,766 938,225 3,680,360 27,072 3,524,048 448,184 25.90 12.56% 8.94% $127,444 12,342 35,454 47,377 16,611 125,384 89,160 19,331 69,829 4.00 2.05 1.22% 13.51% 2.40% $133,414 1,575 36,848 14,795 15,437 110,740 88,179 19,061 69,118 3.96 2.00 1.34% 14.34% 2.77% $132,290 1,550 38,341 10,381 13,392 106,162 86,692 18,260 68,432 3.93 1.76 1.46% 16.20% 3.01% Asset Quality Nonperforming assets to total assets Total past due loans to total loans Allowance for credit losses on loans to total loans* Net loan charge-offs to average loans 0.23% 0.30% 1.05% 0.03% 0.35% 0.40% 0.69% 0.04% 0.28% 0.37% 0.74% 0.03% 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, 2020, 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. 4 LESSONS LEARNED FROM COVID-19 Questions & Answers with Mark Gim “We have always prided ourselves on working as a team at Washington Trust, and our response to the pandemic reaffirmed that spirit of collaboration.” Mark K.W. Gim, President and Chief Operating Officer As COVID-19 continues to present challenges to our communities and region, President and Chief Operating Officer, Mark Gim, shares his thoughts about Washington Trust’s response and resilience during the pandemic. How did Washington Trust successfully respond to the pandemic? I think about our response to the pandemic on two levels: how quickly we were able to pivot our operations to a largely remote workplace; and as we did that, despite the lack of social interaction, how we were still able to maintain a human connection with our customers and each other. We had a solid business continuity plan in place with the necessary infrastructure and technology, so we were able to transition to remote work and digitized processes almost seamlessly in a short period of time, despite the logistics of having hundreds of employees sud- denly working from many different locations. We made it a priority to meet our customers through the channel of their choosing, whether it was in per- son, digitally, on the phone, or via video. However, we did not hide behind our technology. Our customers always knew there was a person who was there for them. It is that commitment to providing a high level of personal service that provides value beyond the trans- action and makes Washington Trust who we are. What were some of the key success stories? We have always prided ourselves on working as a team at Washington Trust, and our response to the pandemic reaffirmed that spirit of collaboration. There are several instances that come to mind: • Our handling of the rollout of the Paycheck Protec- tion Program (PPP): The only way we could have processed PPP applications and gotten PPP funds into the hands of local businesses as quickly as we did was to bring people together from every department in the Bank. Employees quickly devel- oped and mastered processes that were entirely new to them and worked around the clock to provide funds to businesses, both customers and non-customers, in our local communities. • Our frontline team: While the majority of our employees worked remotely, our branch staff remained on-site and persevered through many challenges, including conforming to new health and safety protocols, accommodating custom- continued on next page 5 LESSONS LEARNED cont’d ers for appointment-only in branch visits, and handling increased drive-up activity. Our branch staff’s ability to adapt, and to consistently deliver personal financial solutions to customers with cheerfulness and care, was truly a hallmark of 2020. • Record mortgage volume: Continued low inter- est rates brought us tremendous demand for mortgage borrowing and refinancing in 2020. While this would have been a challenge during a normal year, the pandemic added logistical issues like the unexpected closing of municipal offices, the inability to perform in-person appraisals, and the challenges of digital loan documentation. Through it all, our retail lending and loan opera- tions teams worked diligently to close a record volume of mortgage loans with the speed and quality that customers have come to expect from us. What changes in customer behavior did you see? Interestingly, in a time of social distancing, we found customers still valued connecting one-to-one with our employees more than ever. Digital banking, video meetings, and other technology were essential to conducting business during the pandemic, and cus- tomers welcomed the ease and convenience tech- “Our employees have an authentic connection to their customers and are willing to take the time to understand their needs, especially during a time of crisis when needed the most.” nology offers. But, when customers have questions or concerns about significant financial goals, they want to speak to someone they know and trust. The desire of our employees to help their customers is genuine, and that has never been more evident than throughout this pandemic. This level of service has helped us build even deeper relationships with our customers. Customers really appreciate the personal attention we provide and, although we are moving forward in an age of automation and online transac- tions, we believe the personal touch is still essential in the delivery of financial services and solutions, when it is clearly so important and valued. Can you speak about the importance of community banking? The challenges of the pandemic revealed the strength of having employees who live and work in the communities they serve, which is the case with Washington Trust. Our employees have an authentic connection to their customers and are willing to take the time to understand their needs, especially during a time of crisis when needed the most. We regularly survey our customers and, amazingly, our Net Promoter Score, which rates customer satisfac- tion and the customer experience, actually increased during the pandemic. We believe that even in this digital age, being a local community bank and provid- ing personal service with a “human connection” still matters and is an important differentiator for us. What are the keys to keeping pace with customer needs moving forward? We must continue to listen and respond to our customers and meet them through the channel of their choosing, whether that be in person, digitally, on the phone, or via video. That means keeping at the competitive edge of technology while not losing the personal touch that comes with providing customized advice and service. 6 2020: LESSONS LEARNED We reached out to various executives throughout Washington Trust and asked them a few questions about the challenges their teams faced during 2020: • What were the keys to your area’s success in 2020? • What did you learn about your customers, both internal and external, during the pandemic? • What did you learn about your team? What we learned is that our success relied strongly on the resilience and hard work of employees throughout the Bank. And, most importantly, how the human connection remained at the heart of everything we accomplished, both among our employees and with our customers, despite a year like no one had ever experienced before. 7 COMMERCIAL BANKING Many commercial lending customers changed the way they do business in order to survive. Our employees were able to quickly adapt to those changes and our flexibility enabled us to meet the needs of those customers, during a time when they needed us most. Whether trying to navigate the PPP application and forgiveness process, or working to modify loans during these tough times, our customers looked to us as trusted advisors to get them through. In many cases, their relationship with Washington Trust is stronger than ever as a result of working together through this time of crisis. Being adaptable to change was truly the key to our success, and hopefully will lead to the continued success of many businesses in our community. Business customers were able to interact with the Bank through digital channels throughout the pandemic, particularly for the PPP application and forgiveness process. The adoption of digital solutions by commercial banking customers is a positive sign, as it complements our personal service by providing additional secure financial solutions. “Our team performed extraordinarily well during a period of high stress. Their level of commitment to our customers was amazing to watch.” Jim Hagerty, Chief Lending Officer 8 FINANCIAL ADMINISTRATION Teamwork was the key to our organization’s smooth financial operations in 2020. A dispersed workforce heightened the importance of effective listening, communication, and information-sharing across all business and operational lines, as we were able to stay connected without in-person interactions. We faced the same challenges as most: balancing work demands, like changes in the legal and regulatory environment, with personal demands, and were reminded again and again that our people go above and beyond to do what is right for their colleagues and their company. Strong legacy controls and a highly committed team, willing to make personal sacrifices, positioned us to move seamlessly to remote, digital operations. This allowed us to help adjust the Bank’s strategies to react to the financial impact of the pandemic, assist our colleagues with the rollout of PPP and loan modifications, and continue to meet all of our normal responsibilities. “I can’t say enough about the culture of this Bank, which so consistently promotes and achieves a spirit of cooperation across all business lines for the benefit of our customers.” Ron Ohsberg, Chief Financial Officer 9 HUMAN RESOURCES As the pandemic reached our area, seemingly overnight in March, more than 67% of our workforce began working offsite. We were forced to shift to a remote and paperless environment. This required us to rethink processes overnight, eliminating unnecessary steps, and finding a better way to get things done. We accomplished process re-engineering, that under normal circumstances would have taken years, virtually overnight. We were forced to adapt to new technologies and leverage collaboration tools. Video conferencing quickly became as common as using a tele- phone. We learned new ways to execute documents, signoff, and provide authori- zation. Employees across all divisions – and skill levels – were forced by necessity to learn these new ways of doing business. Our branch teams and a small crew of essential operations staff became our frontline heroes, continuing to service our customers’ financial needs despite the social distancing and safety challenges. And, we learned how to hire, onboard, and train new employees, while still instilling our values, culture, and commitment to providing exceptional service to our customers. During this time, our employees juggled personal and professional priorities. Managers gave great flexibility to when work could be done, with many employees working early mornings, late nights, and weekends to accommodate childcare and home-schooling challenges. At the same time, we continued to see record mort- gage volume, implemented, and originated PPP loans (and the forgiveness of those loans), processed numerous loan deferrals, and assisted our customers while they navigated through the crisis. Some branch employees with childcare issues were re- deployed into functions that allowed them to work remotely. Additionally, employ- ees across many divisions set aside their normal job responsibilities to assist with the PPP project and increased mortgage volumes. It was literally “all hands on deck,” and our workforce enthusiastically answered the call. And, to help employees maintain their physical and mental health while guarding against burnout, we stepped up our wellness program, offering activities, support, and information to encourage healthy eating, stress reduction, exercise, and ways to disconnect from work. Our culture has always been one of personal relationships – both with our customers and each other. Despite the physical separation, our employees found ways to connect socially through virtual coffee breaks, lunches, and cocktail hours. There may have been a lot of external forces at play, but our employ- ees were able to focus on supporting others and working as a focused and cohesive team, with a sense of mission and accomplishment during a very unsettling time. “While the COVID-19 crisis has been challenging, in many ways, it is bringing out the best in our employees and our culture. We are developing a ‘new normal’ that will create a stronger employee and customer experience moving forward, and we will be a better company because of it.” Kristen DiSanto, Chief Human Resources Officer 10 RETAIL BANKING Our retail banking team stayed focused on providing customers with the personal attention and service consistency that are Washington Trust hallmarks, despite the extraordinary challenges presented by COVID-19. From appointment-only branch hours and increased drive-up traffic, to the physical changes put in place at all locations to keep employees and customers safe, our people have been resilient and adaptable. Though our challenges varied from staffing obstacles, to helping customers navigate the stresses and anxieties of changing how they banked, to the overall economic uncertainties, at every turn, our team stepped up to help customers navigate their financial lives. Our employees know their customers, they understand their needs as well as their concerns, and always do their best to exceed customer expectations. Never was this more important than in 2020. Through it all, our retail banking team was an integral part of processing PPP loans for both customers and non-customers, while continuing to reach goals for deposit growth, referrals, and retail lending. “Our mantra for 2020: Business as usual in an unusual way.” Deb Gormley, Chief Retail Banking Officer 11 RETAIL LENDING Early in the pandemic, as capital markets fluctuated wildly, our retail lending team prudently managed the changing rate environment, as well as unprecedented mortgage volume. At the same time, our team worked diligently with our customers, attorneys, appraisers, and recording offices to overcome COVID-related challenges and get applications processed quickly. Purchasing or refinancing a home is a significant financial decision, and despite the challenges of working amid a global pandemic, our team worked tirelessly to help as many borrowers as possible during a time of record activity. Through it all, we maintained the highest level of communication with our customers, giving them confidence in our ability to close their loans as quickly and as efficiently as possible. “Our team was unbelievable - putting in long days and working most weekends and holidays. They are truly dedicated and care about serving our customers.” Mary Noons, Chief Retail Lending Officer 12 RISK MANAGEMENT Long before COVID-19 arrived in the United States, our technology teams had put us in a position to shift rapidly to remote work at an unprecedented scale, with very little disruption, and to react to all employees’ needs using cloud-based technology. This allowed for much more scalability and reliability. The smooth execution of these changes in such a fast-moving environment helped the credit risk team quickly establish processes to address concerns over the pandemic’s impact on our loan portfolio. Many of our teams stepped up to the plate, including our project management office, which was key to managing the Bank’s efforts with the ongoing PPP loans as well as loan forgiveness, and our loan operations group that handled the astonishing growth in mortgage volume. We were able to re-engineer workflows so that on-site presence was not entirely necessary, and simplified our operating environment, which helped our teams communicate effectively to get the job done. “Hard times bring out the best in people, and you learn just what people are capable of doing when given the opportunity to go above and beyond the call of duty.” Bill Wray, Chief Risk Officer 13 TECHNOLOGY Prior to the pandemic, Washington Trust made investments in hardware, software, networking gear, and data storage capabilities that became vital to operating in a remote working environment. The investments in equipment and network upgrades and issuing of laptops to all employees with critical functions was the key to making the transition to remote work much more seamless and effective. Once our teams were off-site, the enablement of cloud technology allowed applications to run as effectively as they did on our local wide area network. And through careful process design changes, we were able to reduce onsite staffing by 75%, all while maintaining critical operational controls and service levels. “We are far more resilient than we ever imagined and, given our commitment to serving our customers both internal and external, we are far more flexible and creative in delivering our services than we ever thought possible.” Jim Mignone, Chief Information Officer 14 WEALTH MANAGEMENT Our team’s keys to success can be summed up in three words: collaboration, commitment and caring. Every single team member demonstrated these attributes in their relationships with their clients and each other by remaining nimble, innovative, and proactive. In wealth management, our team discovered we have the ability to not only survive but thrive in a remote work situation, as we all worked to provide the best results possible for our clients and shareholders alike. We found new ways to conduct business across the board, from holding virtual meetings with clients to conducting webinars for our centers of influence. Interestingly, the pandemic was an opportunity to reaffirm to clients that we are active participants in their life journey, and that we’re focused on both their financial and personal well-being, which ultimately led to closer, deeper relationships in a time of social distancing. “Our employees continued to strive for excellence in delivering strong results for our clients, our shareholders, and each other.” Kathi Ryan, Chief Wealth Management Officer 15 VOLUNTEERISM & COMMUNITY RELATIONS Community is at the heart of everything we do at Washington Trust and the COVID-19 pandemic has strengthened our resolve to support, assist, and care for our customers, neighbors, and coworkers. Little did we know that, just two and a half months into 2020, the pandemic would separate the Washington Trust “family” and our sense of “community” would be tested in ways we could not have predicted. We quickly created new ways to keep the spirit of giving alive and reward employees for their volunteerism and servant leadership. Our peanut butter drive became a 100% online campaign and we collected donations equivalent to 11 tons of peanut butter, bringing our 20-year total to an amazing 143 tons - enough to make 4.5 million peanut butter sandwiches! When nonprofit organizations announced virtual fundraising events, such as walk-a-thons, our employees enthusiastically responded by safely participating with family members and pets. We held environmental clean-up days but, instead of having “teams” of employees at beaches and parks, we encouraged employees to clean up their neighborhoods or favorite outdoor spot. The pandemic heightened the need to provide essential services to our most economically vulnerable neighbors, and Washington Trust responded by contributing to the United Way of Rhode Island’s COVID Relief Fund, the Rhode Island Free Clinic, Crossroads Rhode Island, and other nonprofits, to address the immediate need for housing, food, healthcare and more. We also provided grants to local minority-owned small businesses to fund the purchase of Personal Protection Equipment, so they could keep their businesses open. Our contribution to the Nonviolence Institute in Providence, RI, helped the organization continue to share and practice the principles of nonviolence during a time of tremendous social unrest and pandemic challenges. Washington Trust is proud to serve as the nation’s oldest community bank and we believe social responsibility defines who we are as a company and as community leaders. “The pandemic has strengthened our spirit and sense of community, as our desired purpose to provide assistance, support and care for one another is greater than ever before.” Beth Eckel, Chief Marketing and Communications Officer 16 2020 AWARDS Named as one of Rhode Island’s Best Places to Work by Providence Business News. This marks the tenth year in a row that Washington Trust has been named to the list, which recognizes the outstanding places of employment throughout Rhode Island and Southeastern Massachusetts. Named one of the nation’s Best Banks to Work For by American Banker® magazine as part of its annual list organized by the Best Companies Group. Washington Trust is the only Rhode Island-based institution named on the list. Named by Forbes as the Best In-State Bank in Rhode Island as part of its annual listing/ ranking of the best banks in each of the 50 states. Notably, Washington Trust was the only bank selected in Rhode Island. 17 The Washington Trust Company Executive Leadership Washington Trust Bancorp, Inc. Board of Directors 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 Dennis L. Algiere Executive Vice President, Chief Compliance Officer and Director of Community Affairs 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, Chief Accounting Officer and Controller Mary E. Noons Executive Vice President and Chief Retail Lending Officer Kathleen A. Ryan, Esq. Executive Vice President and Chief Wealth Management Officer Elizabeth B. Eckel Senior Vice President and Chief Marketing and Communications Officer C. Scott Ostrowski Senior Vice President and Chief Audit Executive 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 Sandra Glaser Parrillo Retired President and Chief Executive Officer of The Providence Mutual Fire Insurance Company John T. Ruggieri Senior Vice President and Chief Financial Officer, Gilbane Building Company, and Vice President and Chief Financial Officer, Gilbane, Inc. Edwin J. Santos Retired Financial Services Executive Officers of the Corporation 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 Maria N. Janes, CPA Executive Vice President, Chief Accounting Officer and Controller The Washington Trust Company Directors’ Advisory Council Alcino G. Almeida Joseph J. Kirby Victor J. Orsinger II, Esq. Patrick J. Shanahan Jr. Gary P. Bennett Edward M. Mazze Joseph H. Potter Neil H. Thorp Larry J. Hirsch James W. McCormick Jr. H. Douglas Randall III John F. Treanor Barry G. Hittner Brendan P. O’Donnell Joyce Olson Resnikoff John C. Warren As of publication date 18 LOCATIONS 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 GREENWICH, RI Opening May 2021 East Greenwich Office 695 Main Street East Greenwich, RI 02818 401-715-0280 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 *Operating as Washington Trust Mortgage Company 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 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 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 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 401-348-1200 or 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 19 SHAREHOLDER INFORMATION Interested in Increasing Your WASH Ownership? American Stock Transfer & Trust Company (AST), our transfer agent, offers the Investors Choice Dividend Reinvestment & Direct Stock Purchase and Sale Plan, which provides an easy, efficient way to acquire shares of Washington Trust Bancorp, Inc. common stock. Visit ir.washtrust.com/investor-services/stock-purchase-plan, or contact AST at 800-852-0354 for more information. *For new shareholders, the minimum initial investment is $250. Once you are a shareholder, the minimum purchase amount is reduced to $25. 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 2021 Proxy Statement, Form 10-K and Annual Report for 2020 are available online by visiting the Corporation’s website ir.washtrust.com/proxy, by calling the Corporation’s toll-free number at 800-475-2265 extension 1566, or by email at investor.relations@washtrust.com. Auditors: Crowe LLP, Livingston, New Jersey Counsel: Goodwin Procter LLP, Boston, Massachusetts 20 ir.washtrust.com 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. Cover photo by Chris Walsh Productions 

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