2022
Annual
Report
WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2022
PAGE 2
Chairman’s Message
We made investments in technology, introduced digital solutions, and employed new
processes across business lines to improve employee and customer experiences.
“Community banking is about
people, and we are committed to
providing the right solutions to meet
our employee and customer needs.”
— Edward O. “Ned” Handy III
Letter to Shareholders
I’m pleased to report Washington Trust
once again delivered solid financial results
and consistent returns to shareholders
in 2022, a year marked by significant
economic challenges brought about by the
lingering effects of the global pandemic,
inflationary pressures, changes in the
interest rate environment, and more. We
remained committed to offering a high
level of personal service, digital solutions,
and trusted advice, while ensuring we were
intentionally engaged and supportive of our
employees, customers, and communities to
help them through these turbulent times.
Our strong capital position, disciplined
credit culture, and diverse business model
sustained us through previous economic
cycles and contributed to our success.
Growth is a key strategic initiative,
and we take a disciplined approach to
market expansion. Over the past decade,
de novo branching provided a source of
new deposits and helped us retain our
position as the top state-chartered bank for
FDIC-insured deposits in Rhode Island. In
2022 we opened a branch in Cumberland,
Rhode Island and identified future branch
locations in Providence, Barrington,
and Smithfield. Over the years,
we have successfully expanded our
mortgage lending, commercial
banking, and wealth management
operations outside of our core Rhode
Island market area. Our key business
line performances reflect the continued
challenges of financial market volatility,
intense competition, increased
regulation, and other environmental
factors. Our wealth management division
withstood client attrition late in the year,
but we remain committed to growing
this key line of business for the long term.
In 2022, we expanded our team of local
commercial banking professionals and
opened a commercial lending office in
New Haven, Connecticut. We look
forward to building and deepening
customer relationships and enhancing our
brand presence in the Connecticut market.
We believe there are additional growth
opportunities for a bank like Washington
Trust in these attractive markets.
Community banking is about people,
and we are committed to providing the
right solutions to meet our employee and
customer needs. We quickly adapted to
Financial highlights for the year
ended December 31, 2022:
$71.7M
in net income
or $4.11 diluted
earnings per share
CONSISTENT
PROFITABILITY
14.49%
return on average
equity and 1.17% return
on average assets
SOLID
RETURNS
$6.7B
in total assets
RECORD
LEVEL
$5.1B
in total loans
ALL-TIME
HIGH
$5.0B
in total deposits
SOLID IN-MARKET
DEPOSIT GROWTH
$6.0B
in wealth
management assets
under administration
A KEY SOURCE
OF NONINTEREST
INCOME
$2.18
cash dividends
per share
TWELFTH
CONSECUTIVE
YEAR OF DIVIDEND
INCREASES
WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2022
PAGE 3
Chairman’s Message
In April 2023, Mark Gim will retire,
and Mary Noons will become the first
female President and Chief Operating
Officer in Washington Trust history.
“I am grateful for Mark’s leadership and
look forward to his continued guidance
in his new role as a member of the
Corporation’s Board of Directors. I am
excited to work alongside Mary, who has a
proven track record of achieving business
line growth, service excellence, and
customer satisfaction during her almost
30-year career with us, and who offers
great strategic vision for the
Corporation’s future success.”
— Edward O. “Ned” Handy III
the new work and lifestyle preferences
and behaviors brought about by the
pandemic. We made investments in
technology, introduced digital solutions, and
employed new processes across business
lines to improve employee and customer
experiences. We successfully blended
high-touch customer service, for which we
are well-known, with access to high-tech
tools, providing the speed, security, and
convenience many consumers desire. We
welcomed employees “back to the office,”
post-pandemic, offering a hybrid work
environment and providing secure tools to
enable them to perform efficiently, and serve
customers effectively, while affording them
the desired work-life balance.
Washington Trust has a strong and
distinctive corporate culture, and we remain
committed to fostering a supportive and
inclusive work environment, attracting a
highly talented and diverse workforce, and
supporting and empowering our team to
achieve their personal and professional
goals. We have a formalized strategy that
guides our diversity, equity & inclusion
(“DE&I”) efforts, focusing on four pillars
– culture and employee experience;
recruitment, development, and retention;
leadership and workforce engagement;
and impactful community relationships. To
assist us in implementing our DE&I strategy,
we have established the Washington
Trust DE&I Council, a cross functional
group of colleagues representing different
perspectives, backgrounds, and experiences.
We are excited by the Council’s passion
and look forward to their contributions in
ensuring Washington Trust continues to
offer a welcoming environment and remains
an employer of choice.
We are proud of the recognition we
received in 2022, which include being:
• Listed as one of the nation’s
“Best Banks to Work For” by
American Banker® magazine,
for the fourth consecutive year
• Selected as one of the “Healthiest
Employers in Rhode Island” by
Providence Business News, for
the second consecutive year
• Given outstanding recognition by
Newsweek as “Best Small Bank
in Rhode Island”
to ensure our actions are authentic and
we continue to do what’s right for our
employees, our customers, our communities,
and our shareholders. Our 2022
Environmental, Social, and Governance
(“ESG”) Report will share the many ways
we provide “those little assistances,” as
our original charter states. In honor of
our 222nd Anniversary, our employees
committed more than 222 “Acts of
Kindness,” serving as community leaders
and volunteers to make a difference in the
lives of their family, neighbors, and friends.
I’m immensely proud of our team and the
work they do every day to make Washington
Trust the “Best Place to Work”.
We are confident in our business model and
our team and believe we are well-positioned
to meet the challenges ahead. We remain
committed to enhancing long-term value
for our shareholders and thank you for your
continued support.
• Recognized as one of “Rhode Island’s
Best Places to Work” by Providence
Business News, for the twelfth
consecutive year
Sincerely,
In 2022 we celebrated our 222nd
Anniversary and are proud to be the oldest
community bank in the nation. With
this mantle we bear great responsibility
Edward O. “Ned” Handy III
Chairman and Chief Executive Officer
WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2022
PAGE 4
Operational Review & Looking Forward
Driving Growth in a Challenging Market
The Year in Review with Mark Gim
In 2022 we shifted from the “emergency
response” environment of 2020
and 2021 to a more “normalized”
environment, and continued our focus
on three major priorities: expanding
our reach, enhancing our capabilities
for customers, and producing attractive
returns for shareholders.
Over the past decade we have successfully
expanded our physical presence by opening
offices in new markets—branches in our
home state of Rhode Island and mortgage
offices in nearby Massachusetts and
Connecticut. However, in recent years
our region has seen an increase in office
closings due to mergers and acquisitions
and planned network consolidation. This
market disruption, coupled with changing
customer behavior, has presented us with
new opportunities. We believe there is room
for a company like Washington Trust—
which offers a unique blend of sophisticated
financial products, digital conveniences,
and high-touch personal service—to further
expand in southeastern New England.
We are committed to doing just that
and, in 2022, opened a retail branch
in Cumberland, Rhode Island
and selected future
branch locations in Barrington, Providence,
and Smithfield, Rhode Island. We also
opened a commercial banking office in
New Haven, Connecticut, adjacent to our
wealth management office, to enhance our
presence and capitalize on opportunities
in the area.
Physical expansion has proven to be a
successful strategy for us, as it symbolizes
our investment in the local community,
which is a key part of our community
banking model. It works for customers
too, as they can meet face-to-face with
our caring, experienced trusted advisors
for access to our comprehensive array of
financial solutions. We have found, even
in today’s digital age, the knowledge our
employees confer and the personal service
they provide is still valued by customers and
presents a distinctive competitive advantage.
We assist customers through all life stages,
through personal banking, commercial
banking, trust and wealth management
services, or a combination thereof, ensuring
our customers and their families have access
to a team of advisors to meet their needs.
While traditional office and branch delivery
has proven to be a formula for success,
we recognize it is also important to meet
customers through the channels they
choose. The pandemic rapidly changed
customer behavioral patterns, as well as the
definition and expectations of ‘service’. We
understand the importance of adapting to
changing customer needs and demands and,
in recent years, greatly enhanced our digital
capabilities and operational processes.
We view technology as a customer
experience enhancer, and believe, in
conjunction with human knowledge
and touch, it can be a tremendous
differentiator for us going forward.
In 2022 we continued to make appropriate
investments in technology and introduced
new digital tools to meet customer
preferences for fast, convenient access
to personal, business, and wealth services.
Whether it was online applications,
e-signatures, or video conferences,
delivering services through preferred
methods was paramount to enhancing
the customer experience.
We believe listening to customers,
adapting to their changing patterns of
use, and providing sound solutions fosters
satisfaction. We regularly survey our
customers to ensure we are meeting their
financial needs and expectations for service
excellence. By focusing on ways to provide
holistic solutions to customers’ financial
needs, we can meet customers through the
WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2022
PAGE 5
Operational Review & Looking Forward
“ In my new role as President and Chief Operating Officer, I will apply the ‘lessons learned’ over my
30-year career, which have shaped my approach to community banking.” — Mary Noons
“Over the last three years how we work has
changed radically, but our ability to quickly
pivot, without losing our culture, has
been critical.” — Mark Gim
channels most relevant to them, providing
faster and more cost-effective service. By
blending the convenience and access of
digital services with our high-touch service,
we can satisfy customers now and in the
future. We understand that the challenge
is maintaining the right balance to ensure
relevance and sustain continued growth
and profitability.
Our success is ultimately measured by the
actions we take to satisfy our employees,
customers, and communities. Over the last
three years how we work has changed
radically, but our ability to quickly pivot,
without losing our culture, has been
critical. If we lost our culture, we wouldn’t
be Washington Trust, because people and
human connections are what make us
different and special. We have been voted
one of the best places to work by our
employees, and our positive impact on our
communities hasn’t faltered. We’ve adjusted
as people’s needs have changed. We’ve
maintained consistency in our workforce
by offering employees a more flexible work
environment and affording them the work-
life balance they desire, without sacrificing
customer service or satisfaction. If we can
maintain our culture as we grow, we can
continue to deliver financial returns for our
shareholders. To us, the sum is greater than
the parts. Our track record is strong. We’ve
shown that we can manage through great
changes and deliver the right outcomes for
our employees, customers, the community,
and our shareholders.
Looking Forward with Mary Noons
In my new role as President and Chief
Operating Officer, I will apply the ‘lessons
learned’ over my 30-year career, which
have shaped my approach to community
banking. Washington Trust has always put
the customer first and we must retain that
focus—especially as delivery channels and
customer preferences change. I believe
there is a place for community banks who
are forward-looking, provide meaningful
and convenient solutions, and make a
difference in the lives of their employees,
customers, and communities. My goal is
to strengthen business integration and
innovative thinking to all areas of the
company, so we remain a relevant and
financially successful company.
Business integration involves finding
the right balance of people, process,
and technology. As a business
strategy it can effectively drive
revenue and growth by improving
internal workflows, creating
operational efficiencies, mitigating risk,
and enhancing customer experiences.
In recent years we’ve introduced technology
that has automated tasks previously
performed by employees, streamlining
processes without sacrificing the high-
quality service for which Washington Trust
is known. In fact, our Net Promoter Score,
a metric used to measure customer loyalty
and satisfaction, consistently ranks above
national averages.
Our approach to integration entails
viewing the customer journey “through
their eyes”— as this allows us to better
understand our customers’ needs, desires,
and preferences. We believe every
customer has a unique story. Our goal is
to build meaningful relationships with our
customers by providing solutions that meet
their needs through all stages of their life
journey. People can get deposits, loans,
and wealth management services anywhere.
At Washington Trust we look beyond the
product—our trusted advisors collaborate to
help a customer save for a child’s education,
fulfill their dream of home ownership, create
a plan for retirement, and finance a growing
business—all in one place!
Innovative thinking occurs when employees
at all levels are encouraged to start sharing
ideas and solving problems. Allowing this
type of collaboration not only strengthens
our employees’ motivation, but is engaging,
exciting, and empowering! It gives me
confidence knowing our employees
genuinely care about our customers and
our company. We have a great wealth
of knowledge in our talent pool, and I
believe by encouraging innovative thinking
companywide, we can discover new and
better ways of doing our jobs, serving our
customers, and delivering returns for
our shareholders.
WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2022
PAGE 6
Financial Highlights
(Dollars in thousands, except per share amounts)
FINANCIAL CONDITION
2022
2021
2020
OPERATING RESULTS
2022
2021
2020
ASSET QUALITY
2022
2021
2020
Total assets
$6,660,051
$5,851,127
$5,713,169
Net interest income
$155,990
$141,435
$127,444
Total securities
993,928
1,042,859
894,571
Provision for credit losses
(1,300)
(4,822)
12,342
Total loans
5,110,139
4,272,925
4,195,990
Wealth management revenues
38,746
41,282
35,454
Allowance for credit
losses on loans
38,027
39,088
44,106
Mortgage banking revenues
8,733
28,626
47,377
Total deposits
5,018,962
4,980,051
4,378,353
Other noninterest income
15,123
17,486
16,611
Total shareholders’ equity
453,669
564,808
534,195
Total noninterest expenses
128,722
135,464
125,384
Book value per share
26.40
32.59
30.94
Income before income taxes
91,170
98,187
89,160
Total risk-based capital ratio
12.37%
14.01%
13.51%
Income tax expense
19,489
21,317
19,331
Equity to assets
6.81%
9.65%
9.35%
Net income
71,681
76,870
69,829
Nonperforming assets
to total assets
Total past due loans
to total loans
Allowance for credit
losses on loans to
total loans
Net loan (recoveries)
charge-offs to
average loans
0.19%
0.24% 0.23%
0.23%
0.24% 0.30%
0.74%
0.91% 1.05%
(0.01%) 0.01% 0.03%
Earnings per common
share – diluted
Cash dividends declared
per share
4.11
4.39
4.00
2.18
2.10
2.05
Return on average assets
1.17%
1.32%
1.22%
Return on average equity
14.49%
14.03%
13.51%
Net interest margin
(taxable equivalent basis)
2.69%
2.59%
2.40%
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, 2022, as filed with the Securities and Exchange Commission (“SEC”) and updated by our Quarterly Reports on Form 10-Q and other filings with the SEC. 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.
WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2022
PAGE 7
(As of pubication date)
Executive
Leadership
The Washington
Trust Company
Board of
Directors
Washington Trust
Bancorp, Inc.
Edward O. Handy III
Chairman and Chief Executive Officer
Mark K. W. Gim
President and Chief Operating Officer
Mary E. Noons
Senior Executive Vice President and
Chief Retail Lending Officer
Kristen L. DiSanto
Senior Executive Vice President,
Chief Human Resources Officer
and Corporate Secretary
Ronald S. Ohsberg
Senior Executive Vice President,
Chief Financial Officer and Treasurer
William K. Wray, Sr.
Senior Executive Vice President
and Chief Risk Officer
Maria N. Janes, CPA
Executive Vice President,
Chief Accounting Officer and Controller
The Washington Trust Company
Directors’ Advisory Council:
Dennis L. Algiere
Executive Vice President, Chief Compliance
Officer and Director of Community Affairs
Jame A. Mignone
Executive Vice President and
Chief Information Officer
Anthony A. Botelho
Executive Vice President and Chief
Commercial Lending Officer
Kathleen A. Ryan, Esq.
Executive Vice President and
Chief Wealth Management Officer
Elizabeth B. Eckel
Executive Vice President, Chief Marketing
and Corporate Communications Officer
Julia Anne M. Slom
Executive Vice President and
Chief Commercial Real Estate Lending Officer
Debra A. Gormley
Executive Vice President and
Chief Retail Banking Officer
C. Scott Ostrowski
Senior Vice President and
Chief Audit Executive
• Alcino G. Almeida
• Gary P. Bennett
• Larry J. Hirsch
• Barry G. Hittner
• Katherine W. Hoxsie, CPA
• Joseph J. Kirby
• Edward M. Mazze
• James W. McCormick, Jr.
• Victor J. Orsinger II, Esq.
• Joseph H. Potter
• H. Douglas Randall III
• Joyce Olson Resnikoff
• Patrick J. Shanahan, Jr.
• John F. Treanor
• John C. Warren
John J. Bowen
Chancellor Emeritus,
Johnson & Wales University
Steven J. Crandall
Vice President, Ashaway
Line & Twine Mfg. Co.
Robert A. DiMuccio, CPA
Retired Chairman, President and
Chief Executive Officer, Amica Mutual
Insurance Company
Joseph P. Gencarella, CPA
Retired Audit Partner, KPMG LLP
Mark K. W. Gim
President and Chief Operating Officer,
Washington Trust Bancorp, Inc.
Edward O. Handy III
Chairman and Chief Executive Officer,
Washington Trust Bancorp, Inc.
Constance A. Howes, Esq.
Retired Healthcare Executive
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, Providence Mutual Fire
Insurance Company
John T. Ruggieri
Retired 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
Lisa M. Stanton
Retired General Manager, Enterprise
Strategy, American Express
Officers of the Corporation:
Edward O. Handy III
Chairman and Chief Executive Officer
Mark K. W. Gim
President and Chief Operating Officer
Kristen L. DiSanto
Senior Executive Vice President,
Chief Human Resources Officer
and Corporate Secretary
Ronald S. Ohsberg
Senior Executive Vice President,
Chief Financial Officer and Treasurer
Maria N. Janes, CPA
Executive Vice President,
Chief Accounting Officer and Controller
WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2022
PAGE 8
WEBSITES
ir.washtrust.com
washtrust.com
washtrustmortgage.com
washtrustwealth.com
TICKER SYMBOL
NASDAQ: WASH
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.
Stock Transfer and Dividend Disbursing Agent:
American Stock Transfer & Trust Company, LLC
6201 15th Avenue, Brooklyn, NY 11219
800-852-0354 • www.astfinancial.com
The Corporation’s 2023 Proxy Statement and
2022 Form 10-K 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, Grand Rapids, Michigan
Counsel: Goodwin Procter LLP, Boston, Massachusetts
7
Residential
Mortgage
Loan Offices
Operating as
Washington Trust
Mortgage Company
25
Branch
Offices
5
Wealth
Management
Offices
4
Commercial
Lending
Offices
Future Branches
Opening Soon
Headquarters
Westerly, RI