Washington Trust Bancorp
Annual Report 2023

Plain-text annual report

Annual Report 2023 Chairman’s Message Our commitment to enhancing long-term value encompasses our shareholders, as well as our valued employees, loyal customers, and the communities we serve. As I reflect on 2023, I am most proud of our team’s resilience and continued perseverance in helping us navigate our way through the extremely difficult macro-environment. Throughout the year our team exhibited agility, collaboration, and care in supporting one another through these uncertain and challenging times. Team members from our key business lines — retail banking, commercial banking, mortgage banking, and wealth management services — served as trusted advisors to help our customers manage interest rate hikes, market swings, and inflationary pressures. Our front line and back-office teams continued to deliver exceptional and highly personalized service. I am grateful for our team’s continued support, contributions, and commitment to expense, project, and risk management. In 2023, we took steps to fortify our business and further position Washington Trust as a sustainably relevant, profitable, and leading regional financial services organization — for the long term. To make progress toward this goal, we remain focused on preserving and building our already strong capital position. We also made strategic decisions toward future growth by approving investments in technology, branch network expansion, and product development and pricing. To ensure we meet our customers’ evolving expectations for quick, easy, and convenient digital service, we enhanced our business and personal digital banking platforms and streamlined processes. We also approved technological investments centered around simplifying and enhancing the customer “ In 2023, we took steps to fortify our business and further position Washington Trust as a sustainably relevant, profitable, and leading regional financial services organization — for the long term.” $7.2B $5.6B $5.3B $6.6B ASSETS . LOANS . DEPOSITS . AUA Wealth Management Assets Under Administration WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 02 experience for new and existing customers. balance. This account was certified as part of the Improving the digital customer experience is key Bank On movement and meets the Cities for to attracting new deposit, loan, and wealth Financial Empowerment Fund (“CFE”) National customers, and building and retaining relationships Account standards. We remain deeply committed to with existing customers. building home ownership equity and introduced the “Buyer's AdvantageTM”, “Home OpportunityTM” and As we leverage technology to ensure convenience “I Luv RI Community LendingTM”as part of our RI and accessibility through digital banking, we also Community Lending Program. These three unique continued our commitment to growing our physical community lending programs offer flexible product branch presence in Rhode Island. This is an integral solutions and a variety of financing options, component of our growth strategy to ensure we matching funds, and grants, as well as closing cost deliver localized services, foster community credits and grants. engagement, and provide greater accessibility. In 2023, we opened our first branch on the East Bay, Over the past 223 years, in Barrington, Rhode Island. Earlier this year, in late Washington Trust has January, we expanded our northern Rhode Island helped generations presence opening a new branch in Smithfield. We are excited to open our 28th branch, in the Olneyville neighborhood of Providence, Rhode of people and businesses achieve their financial goals Island, later this year. We look forward to deepening through savings, our connections with our communities through our strategic branch expansion. We understand the challenges our customers face in today’s economy and proactively developed lending, and wealth building programs. More importantly, our employees products and made pricing decisions to help meet have served as trusted advisors, community leaders, their financial needs. In early 2023, we introduced and ambassadors for our financial wellness program. Simply Free Checking, an account featuring no bank We hold seminars for students and community overdraft fees, no monthly fees, and no minimum groups on budgeting, saving, managing debt, and investing in the stock market. We also share tips on important topics such as fraud protection and cybersecurity. As part of our comprehensive initiatives, we remain dedicated to recognizing, observing, and celebrating diversity, equity, and inclusion (“DE&I”) with our employees and the communities we serve. We long-term growth through deposit acquisition strategies, investments in technology, and physical branch expansion. We believe this positions us for sustained success and we are confident in our ability to navigate any uncertainties. Our commitment to enhancing long-term value encompasses our shareholders, as well as our valued believe our company and workforce should mirror professionally while fostering a sense of belonging employees, loyal customers, and the communities the diversity of our customers and communities, and community. we serve. Thank you all for being part of our journey. and this alignment is key to addressing the evolving needs of our growing customer base. Our DE&I As we proceed in 2024, there are uncertainties in the Sincerely, Council plays a pivotal role in the successful banking industry and in the world at large, including implementation of our strategy, ensuring that interest rates, the credit market, the global economy, Washington Trust maintains a welcoming and geopolitical events. We have weathered many environment for all and sustains its reputation storms throughout our 223-year history, and we will as an employer of choice. In 2024, we plan to build continue to do what is best, regardless of the Edward O. “Ned” Handy III on our DE&I commitment through the introduction economic environment, by managing our balance Chairman and Chief Executive Officer of employee resource groups designed to provide sheet, maintaining credit quality, and prudently a safe and supportive space for employees to overseeing expenses. At the same time, we are connect, network, learn and grow personally and strategically positioning Washington Trust for As I reflect on 2023, I am most In 2023, we took steps to fortify our business and proud of our team’s resilience further position Washington Trust as a sustainably and continued perseverance relevant, profitable, and leading regional financial in helping us navigate our services organization — for the long term. To way through the extremely make progress toward this goal, we remain difficult macro-environment. focused on preserving and building our already strong capital position. We also made strategic Throughout the year our decisions toward future growth by approving team exhibited agility, collaboration, investments in technology, branch network and care in supporting one another through these expansion, and product development uncertain and challenging times. Team members and pricing. from our key business lines — retail banking, commercial banking, mortgage banking, and wealth To ensure we meet our customers’ management services — served as trusted advisors evolving expectations for quick, easy, to help our customers manage interest rate hikes, and convenient digital service, we market swings, and inflationary pressures. Our front enhanced our business and personal line and back-office teams continued to deliver digital banking platforms and exceptional and highly personalized service. streamlined processes. We also I am grateful for our team’s continued support, approved technological investments contributions, and commitment to expense, project, and risk management. centered around simplifying and enhancing the customer “ In these challenging economic times, it’s more important than ever to help customers manage their finances and achieve financial wellness.” experience for new and existing customers. Improving the digital customer experience is key to attracting new deposit, loan, and wealth customers, and building and retaining relationships with existing customers. As we leverage technology to ensure convenience and accessibility through digital banking, we also continued our commitment to growing our physical branch presence in Rhode Island. This is an integral component of our growth strategy to ensure we deliver localized services, foster community engagement, and provide greater accessibility. In 2023, we opened our first branch on the East Bay, in Barrington, Rhode Island. Earlier this year, in late January, we expanded our northern Rhode Island presence opening a new branch in Smithfield. We are excited to open our 28th branch, in the Olneyville neighborhood of Providence, Rhode Island, later this year. We look forward to deepening our connections with our communities through our strategic branch expansion. We understand the challenges our customers face in today’s economy and proactively developed products and made pricing decisions to help meet their financial needs. In early 2023, we introduced Simply Free Checking, an account featuring no bank overdraft fees, no monthly fees, and no minimum balance. This account was certified as part of the Bank On movement and meets the Cities for Financial Empowerment Fund (“CFE”) National Account standards. We remain deeply committed to building home ownership equity and introduced the “Buyer's AdvantageTM”, “Home OpportunityTM” and “I Luv RI Community LendingTM”as part of our RI Community Lending Program. These three unique community lending programs offer flexible product solutions and a variety of financing options, matching funds, and grants, as well as closing cost credits and grants. Over the past 223 years, Washington Trust has helped generations of people and businesses achieve their financial goals through savings, lending, and wealth building programs. More importantly, our employees have served as trusted advisors, community leaders, and ambassadors for our financial wellness program. We hold seminars for students and community groups on budgeting, saving, managing debt, and WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 03 investing in the stock market. We also share tips on important topics such as fraud protection and cybersecurity. As part of our comprehensive initiatives, we remain dedicated to recognizing, observing, and celebrating diversity, equity, and inclusion (“DE&I”) with our employees and the communities we serve. We long-term growth through deposit acquisition strategies, investments in technology, and physical branch expansion. We believe this positions us for sustained success and we are confident in our ability to navigate any uncertainties. Our commitment to enhancing long-term value encompasses our shareholders, as well as our valued believe our company and workforce should mirror professionally while fostering a sense of belonging employees, loyal customers, and the communities the diversity of our customers and communities, and community. we serve. Thank you all for being part of our journey. and this alignment is key to addressing the evolving needs of our growing customer base. Our DE&I As we proceed in 2024, there are uncertainties in the Sincerely, Council plays a pivotal role in the successful banking industry and in the world at large, including implementation of our strategy, ensuring that interest rates, the credit market, the global economy, Washington Trust maintains a welcoming and geopolitical events. We have weathered many environment for all and sustains its reputation storms throughout our 223-year history, and we will as an employer of choice. In 2024, we plan to build continue to do what is best, regardless of the Edward O. “Ned” Handy III on our DE&I commitment through the introduction economic environment, by managing our balance Chairman and Chief Executive Officer of employee resource groups designed to provide sheet, maintaining credit quality, and prudently a safe and supportive space for employees to overseeing expenses. At the same time, we are connect, network, learn and grow personally and strategically positioning Washington Trust for As I reflect on 2023, I am most In 2023, we took steps to fortify our business and proud of our team’s resilience further position Washington Trust as a sustainably and continued perseverance relevant, profitable, and leading regional financial in helping us navigate our services organization — for the long term. To way through the extremely make progress toward this goal, we remain difficult macro-environment. focused on preserving and building our already strong capital position. We also made strategic Throughout the year our decisions toward future growth by approving team exhibited agility, collaboration, investments in technology, branch network and care in supporting one another through these expansion, and product development uncertain and challenging times. Team members and pricing. from our key business lines — retail banking, commercial banking, mortgage banking, and wealth To ensure we meet our customers’ management services — served as trusted advisors evolving expectations for quick, easy, to help our customers manage interest rate hikes, and convenient digital service, we market swings, and inflationary pressures. Our front enhanced our business and personal line and back-office teams continued to deliver digital banking platforms and exceptional and highly personalized service. streamlined processes. We also I am grateful for our team’s continued support, approved technological investments contributions, and commitment to expense, project, and risk management. centered around simplifying and enhancing the customer experience for new and existing customers. balance. This account was certified as part of the Improving the digital customer experience is key Bank On movement and meets the Cities for to attracting new deposit, loan, and wealth Financial Empowerment Fund (“CFE”) National customers, and building and retaining relationships Account standards. We remain deeply committed to with existing customers. building home ownership equity and introduced the “Buyer's AdvantageTM”, “Home OpportunityTM” and As we leverage technology to ensure convenience “I Luv RI Community LendingTM”as part of our RI and accessibility through digital banking, we also Community Lending Program. These three unique continued our commitment to growing our physical community lending programs offer flexible product branch presence in Rhode Island. This is an integral solutions and a variety of financing options, component of our growth strategy to ensure we matching funds, and grants, as well as closing cost deliver localized services, foster community credits and grants. engagement, and provide greater accessibility. In 2023, we opened our first branch on the East Bay, Over the past 223 years, in Barrington, Rhode Island. Earlier this year, in late Washington Trust has January, we expanded our northern Rhode Island helped generations presence opening a new branch in Smithfield. We are excited to open our 28th branch, in the Olneyville neighborhood of Providence, Rhode of people and businesses achieve their financial goals Island, later this year. We look forward to deepening through savings, our connections with our communities through our lending, and strategic branch expansion. We understand the challenges our customers face in today’s economy and proactively developed wealth building programs. More importantly, our employees products and made pricing decisions to help meet have served as trusted advisors, community leaders, their financial needs. In early 2023, we introduced and ambassadors for our financial wellness program. Simply Free Checking, an account featuring no bank We hold seminars for students and community overdraft fees, no monthly fees, and no minimum groups on budgeting, saving, managing debt, and investing in the stock market. We also share tips on important topics such as fraud protection and cybersecurity. As part of our comprehensive initiatives, we remain dedicated to recognizing, observing, and celebrating diversity, equity, and inclusion (“DE&I”) with our employees and the communities we serve. We believe our company and workforce should mirror the diversity of our customers and communities, and this alignment is key to addressing the evolving needs of our growing customer base. Our DE&I Council plays a pivotal role in the successful implementation of our strategy, ensuring that Washington Trust maintains a welcoming environment for all and sustains its reputation as an employer of choice. In 2024, we plan to build on our DE&I commitment through the introduction of employee resource groups designed to provide a safe and supportive space for employees to connect, network, learn and grow personally and “ Washington Trust maintains a welcoming environment for all and sustains its reputation as an employer of choice.” professionally while fostering a sense of belonging and community. As we proceed in 2024, there are uncertainties in the banking industry and in the world at large, including interest rates, the credit market, the global economy, and geopolitical events. We have weathered many storms throughout our 223-year history, and we will continue to do what is best, regardless of the economic environment, by managing our balance sheet, maintaining credit quality, and prudently overseeing expenses. At the same time, we are strategically positioning Washington Trust for long-term growth through deposit acquisition strategies, investments in technology, and physical branch expansion. We believe this positions us for sustained success and we are confident in our ability to navigate any uncertainties. Our commitment to enhancing long-term value encompasses our shareholders, as well as our valued employees, loyal customers, and the communities we serve. Thank you all for being part of our journey. Sincerely, Edward O. “Ned” Handy III Chairman and Chief Executive Officer WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 04 Employees Named one of the nation’s Best Banks to Work For by American Banker® magazine for the 5th consecutive year. Named to the Forbes list of Best-In-State-Banks 2023. The spirit of Washington Trust is alive through our corporate culture! Named by Newsweek as Best Small Bank in Rhode Island for the 2nd consecutive year. Named as one of Rhode Island’s Best Places to Work by Providence Business News for the 13th consecutive year. Named as one of the Healthiest Employers in Rhode Island by Providence Business News for the 3rd consecutive year. WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 05 Operational Review Technology plays a vital role in our industry as it continues to redefine the way financial institutions engage with customers. In 2023, we committed to technological investments that will provide customers with a seamless, efficient, and user-friendly experience. For more than 223 years, what has set Washington Trust apart from the competition is the personalized approach that spans our financial offerings. Today, our growth and success are rooted in the same principles — a thoughtful approach to business operations, outstanding service, and exceptional customer experiences — that have made us a trusted financial partner to generations of New Englanders. Although the banking industry faced significant challenges in 2023, our company remained resilient. Our ability to persevere is the result of our dedicated team and the lasting relationships we have with our loyal customers. All banks utilize deposits as a key source of low-cost funding for loan growth, which in turn fuels revenue. Over the past two years, the Federal Reserve has implemented twelve rate increases, leading to heightened competition for deposits and rapidly rising deposit costs for our industry. Over the long term, we do not believe it is sustainable, profitable, or prudent balance sheet management to compete on rates alone to attract deposits. Instead, our strategy centers on attracting and building deep customer relationships through exceptional personal service, local branch locations, and technological tools that offer the speed and convenience our customers value. Technology plays a vital role in our industry as it continues to redefine the way financial institutions engage with customers. In 2023, we committed to technological investments that will provide customers with a seamless, efficient, and “ We actively foster a culture of development and innovation for our team members.” WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 06 user-friendly experience. In 2024, we will expanding our physical footprint while enhancing our introduce an omnichannel digital solution that digital capabilities — ensures that we meet our will enable customers to quickly and easily open customers where they are and provide a deposit accounts through their preferred delivery personalized banking experience. channel — online, mobile, in-branch, or call center. We will also introduce a “quick switch” digital tool In addition to our focus on digital features and that will allow customers to easily transfer their branch expansion, our commitment to accessibility direct deposits and automatic payments from remains a priority. We recognize the diversity within another financial institution to Washington Trust. our communities and strive to create an environment Not only does this enhance the efficiency of deposit that is inclusive and accessible for all. For example, account opening, but it helps to expand our as part of our outreach initiatives, in 2023 we presence outside of our branch footprint. In addition, translated even more of our marketing materials as we are gearing up to launch our "Refer a Friend" well as our radio, TV and print advertisements into program. Rooted in our high net promoter scores, Spanish and expanded our advertising reach into this initiative will enable us to tap into the support Spanish media outlets. In 2024, we plan to introduce of our existing customers, leverage their positive a website plug-in, enabling users to select Spanish experiences and expressed willingness to recommend us to friends and family, and drive new customer acquisitions. While our digital solutions make life easier for our customers, we also understand the importance physical branch locations play in providing the personal element of banking. In addition to providing increased accessibility to in-person consultations, brick-and-mortar branches as their preferred language upon logging in. Efforts demonstrate our commitment to the communities like these enhance the accessibility of our products we serve, bolster our visibility, and attract new and services to meet the needs of the diverse customers. Our dual approach — focusing on communities we serve. Through the combination of personal banking, service. In fact, the macro-economic and industry products, and solutions, combined with digital commercial banking, and trust and wealth challenges of 2023 demonstrated the importance of conveniences, to ensure an exceptional customer management services, we guide customers through our operational agility and the innovative spirit of our experience. And, we have a strong corporate culture all stages of life, ensuring access to a dedicated team. We actively foster a culture of development built on driving innovation, further enhancing our team of advisors tailored to meet their unique needs. and innovation for our team members. To make our operations, and increasing value to our shareholders. In an industry characterized by fragmentation, processes as easy and customer friendly as possible, Thank you for your continued trust and confidence. consumers at other financial institutions are often we encourage our team to view experiences through forced to interact with different entities for various the customers' eyes. This approach enables us to Sincerely, services. At Washington Trust, we take the time to strengthen our internal processes to make a get to know our customers and their families difference where it matters most, which is a great personally and understand their financial situations customer experience. Our company also benefits by and aspirations. Our integrated approach enables us increasing overall productivity while providing team Mary E. Noons to create a supportive financial environment and members with valuable opportunities to broaden President and Chief Operating Officer deliver customized solutions that extend beyond their skills and advance in their careers. mere transactions, fostering lasting relationships and building loyalty across our offerings. Looking ahead, we will continue to successfully navigate the dynamic industry landscape. Our Strengthening our knowledge base, connection, and customer-centric philosophy has enabled us to agility through the implementation of technology weather many economic storms during the past 223 empowers our people to look for more ways to years. We have an incredible team that cares deeply provide our customers with exceptional levels of about all our communities. We offer advice, For more than 223 years, what Over the past two years, the Federal Reserve has has set Washington Trust implemented twelve rate increases, leading to apart from the competition is heightened competition for deposits and rapidly the personalized approach rising deposit costs for our industry. Over the that spans our financial long term, we do not believe it is sustainable, offerings. Today, our growth profitable, or prudent balance sheet and success are rooted in the management to compete on rates alone to same principles — a thoughtful attract deposits. Instead, our strategy centers approach to business operations, on attracting and building deep customer outstanding service, and exceptional customer relationships through exceptional personal experiences — that have made us a trusted financial service, local branch locations, and partner to generations of New Englanders. technological tools that offer the speed and convenience our customers value. Although the banking industry faced significant challenges in 2023, our company remained resilient. Technology plays a vital role in our Our ability to persevere is the result of our dedicated industry as it continues to redefine the team and the lasting relationships we have with our way financial institutions engage with loyal customers. customers. In 2023, we committed to technological investments that All banks utilize deposits as a key source of low-cost will provide customers with a funding for loan growth, which in turn fuels revenue. seamless, efficient, and Customers “ In addition to our focus on digital features and branch expansion, our commitment to accessibility remains a priority.” user-friendly experience. In 2024, we will introduce an omnichannel digital solution that will enable customers to quickly and easily open deposit accounts through their preferred delivery channel — online, mobile, in-branch, or call center. We will also introduce a “quick switch” digital tool that will allow customers to easily transfer their direct deposits and automatic payments from another financial institution to Washington Trust. Not only does this enhance the efficiency of deposit account opening, but it helps to expand our presence outside of our branch footprint. In addition, we are gearing up to launch our "Refer a Friend" program. Rooted in our high net promoter scores, this initiative will enable us to tap into the support of our existing customers, leverage their positive experiences and expressed willingness to recommend us to friends and family, and drive new customer acquisitions. While our digital solutions make life easier for our customers, we also understand the importance physical branch locations play in providing the personal element of banking. In addition to providing increased accessibility to in-person consultations, brick-and-mortar branches demonstrate our commitment to the communities we serve, bolster our visibility, and attract new customers. Our dual approach — focusing on expanding our physical footprint while enhancing our digital capabilities — ensures that we meet our customers where they are and provide a personalized banking experience. In addition to our focus on digital features and branch expansion, our commitment to accessibility remains a priority. We recognize the diversity within our communities and strive to create an environment that is inclusive and accessible for all. For example, as part of our outreach initiatives, in 2023 we translated even more of our marketing materials as well as our radio, TV and print advertisements into Spanish and expanded our advertising reach into Spanish media outlets. In 2024, we plan to introduce a website plug-in, enabling users to select Spanish as their preferred language upon logging in. Efforts like these enhance the accessibility of our products and services to meet the needs of the diverse communities we serve. WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 07 Through the combination of personal banking, service. In fact, the macro-economic and industry products, and solutions, combined with digital commercial banking, and trust and wealth challenges of 2023 demonstrated the importance of conveniences, to ensure an exceptional customer management services, we guide customers through our operational agility and the innovative spirit of our experience. And, we have a strong corporate culture all stages of life, ensuring access to a dedicated team. We actively foster a culture of development built on driving innovation, further enhancing our team of advisors tailored to meet their unique needs. and innovation for our team members. To make our operations, and increasing value to our shareholders. In an industry characterized by fragmentation, processes as easy and customer friendly as possible, Thank you for your continued trust and confidence. consumers at other financial institutions are often we encourage our team to view experiences through forced to interact with different entities for various the customers' eyes. This approach enables us to Sincerely, services. At Washington Trust, we take the time to strengthen our internal processes to make a get to know our customers and their families difference where it matters most, which is a great personally and understand their financial situations customer experience. Our company also benefits by and aspirations. Our integrated approach enables us increasing overall productivity while providing team Mary E. Noons to create a supportive financial environment and members with valuable opportunities to broaden President and Chief Operating Officer deliver customized solutions that extend beyond their skills and advance in their careers. mere transactions, fostering lasting relationships and building loyalty across our offerings. Looking ahead, we will continue to successfully navigate the dynamic industry landscape. Our Strengthening our knowledge base, connection, and customer-centric philosophy has enabled us to agility through the implementation of technology weather many economic storms during the past 223 empowers our people to look for more ways to years. We have an incredible team that cares deeply provide our customers with exceptional levels of about all our communities. We offer advice, For more than 223 years, what Over the past two years, the Federal Reserve has has set Washington Trust implemented twelve rate increases, leading to apart from the competition is heightened competition for deposits and rapidly the personalized approach rising deposit costs for our industry. Over the that spans our financial long term, we do not believe it is sustainable, offerings. Today, our growth profitable, or prudent balance sheet and success are rooted in the management to compete on rates alone to same principles — a thoughtful attract deposits. Instead, our strategy centers approach to business operations, on attracting and building deep customer outstanding service, and exceptional customer relationships through exceptional personal experiences — that have made us a trusted financial service, local branch locations, and partner to generations of New Englanders. technological tools that offer the speed and convenience our customers value. Although the banking industry faced significant challenges in 2023, our company remained resilient. Technology plays a vital role in our Our ability to persevere is the result of our dedicated industry as it continues to redefine the team and the lasting relationships we have with our way financial institutions engage with loyal customers. customers. In 2023, we committed to technological investments that All banks utilize deposits as a key source of low-cost will provide customers with a funding for loan growth, which in turn fuels revenue. seamless, efficient, and user-friendly experience. In 2024, we will expanding our physical footprint while enhancing our introduce an omnichannel digital solution that digital capabilities — ensures that we meet our will enable customers to quickly and easily open customers where they are and provide a deposit accounts through their preferred delivery personalized banking experience. channel — online, mobile, in-branch, or call center. We will also introduce a “quick switch” digital tool In addition to our focus on digital features and that will allow customers to easily transfer their branch expansion, our commitment to accessibility direct deposits and automatic payments from remains a priority. We recognize the diversity within another financial institution to Washington Trust. our communities and strive to create an environment Not only does this enhance the efficiency of deposit that is inclusive and accessible for all. For example, account opening, but it helps to expand our as part of our outreach initiatives, in 2023 we presence outside of our branch footprint. In addition, translated even more of our marketing materials as we are gearing up to launch our "Refer a Friend" well as our radio, TV and print advertisements into program. Rooted in our high net promoter scores, Spanish and expanded our advertising reach into this initiative will enable us to tap into the support Spanish media outlets. In 2024, we plan to introduce of our existing customers, leverage their positive a website plug-in, enabling users to select Spanish experiences and expressed willingness to recommend us to friends and family, and drive new customer acquisitions. While our digital solutions make life easier for our customers, we also understand the importance physical branch locations play in providing the personal element of banking. In addition to providing increased accessibility to in-person consultations, brick-and-mortar branches as their preferred language upon logging in. Efforts demonstrate our commitment to the communities like these enhance the accessibility of our products we serve, bolster our visibility, and attract new and services to meet the needs of the diverse customers. Our dual approach — focusing on communities we serve. To make our processes as easy and customer friendly as possible, we encourage our team to view experiences through the customers' eyes. Through the combination of personal banking, commercial banking, and trust and wealth management services, we guide customers through all stages of life, ensuring access to a dedicated team of advisors tailored to meet their unique needs. In an industry characterized by fragmentation, consumers at other financial institutions are often forced to interact with different entities for various services. At Washington Trust, we take the time to get to know our customers and their families personally and understand their financial situations and aspirations. Our integrated approach enables us to create a supportive financial environment and deliver customized solutions that extend beyond mere transactions, fostering lasting relationships and building loyalty across our offerings. Strengthening our knowledge base, connection, and agility through the implementation of technology empowers our people to look for more ways to provide our customers with exceptional levels of service. In fact, the macro-economic and industry challenges of 2023 demonstrated the importance of our operational agility and the innovative spirit of our team. We actively foster a culture of development and innovation for our team members. To make our processes as easy and customer friendly as possible, we encourage our team to view experiences through the customers' eyes. This approach enables us to strengthen our internal processes to make a difference where it matters most, which is a great customer experience. Our company also benefits by increasing overall productivity while providing team members with valuable opportunities to broaden their skills and advance in their careers. Looking ahead, we will continue to successfully navigate the dynamic industry landscape. Our customer-centric philosophy has enabled us to weather many economic storms during the past 223 years. We have an incredible team that cares deeply about all our communities. We offer advice, products, and solutions, combined with digital conveniences, to ensure an exceptional customer experience. And, we have a strong corporate culture built on driving innovation, further enhancing our operations, and increasing value to our shareholders. Thank you for your continued trust and confidence. Sincerely, Mary E. Noons President and Chief Operating Officer WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 08 Community $1.1M . TOTAL GIVING Corporate Support 8,169 HOURS Employee Volunteerism . 442 ORGANIZATIONS Community Partnerships Safe & Affordable Housing Financial Wellness & Economic Empowerment Basic Needs & Family Services Community is one of our core values. Our success is intertwined with the communities we serve, so we have a vested interest in helping them grow and prosper. Washington Trust provides support for many local nonprofits through volunteerism, board leadership, and corporate giving. Our employees donate their time to support causes and organizations that make our communities special. Whether it's guiding our neighbors to first-time home ownership, teaching financial responsibility to high school students, or collecting peanut butter for local food pantries, they are making a difference every day. WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 09 8,169$1.1M442Shareholders Net Income Diluted EPS (Per Common Share) 2023 2022 2021 $48.2M $71.7M $76.9M 2023 2022 2021 $2.82 $4.11 $4.39 “ We have weathered many storms throughout our 223-year history, and we will continue to do what is best, regardless of the economic environment, by managing our balance sheet, maintaining credit quality, and prudently overseeing expenses.” — Edward O. “Ned” Handy III Chairman and Chief Executive Officer Cash Dividends Declared (Per Share) Revenues Net Interest Income Wealth Management Revenues Mortgage Baning Revenues Other 2023 2022 2021 $2.24 $2.18 $2.10 2023 2022 2021 $193M $219M $229M Total Loans (Year-end) Commercial Residential Consumer Total Deposits (Year-end) Demand & NOW Money Market & Savings Time Deposits 2023 2022 2021 $5.6B $5.1B $4.3B 2023 2022 2021 $5.3B $5.0B $5.0B WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 10 Financial Highlights (At or for the years ended December 31; in thousands, except per share and ratio data) FINANCIAL CONDITION Total assets 2023 2022 2021 $7,202,847 $6,660,051 $5,851,127 OPERATING RESULTS Net interest income 2023 2022 2021 $137,098 $155,990 $141,435 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 1,000,380 5,647,706 41,057 5,348,160 472,686 27.75 11.58% 6.56% 993,928 5,110,139 38,027 5,018,962 453,669 26.40 12.37% 6.81% 1,042,859 4,272,925 39,088 4,980,051 564,808 32.59 14.01% 9.65% 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 (recoveries) to average loans 2023 0.63% 0.20% 2022 0.19% 0.23% 0.73% 0.74% 0.01% (0.01%) 2021 0.24% 0.24% 0.91% 0.01% 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) 3,200 35,540 6,660 13,940 (1,300) (4,822) 38,746 8,733 15,123 41,282 28,626 17,486 133,557 128,722 135,464 56,481 8,305 48,176 2.82 2.24 0.69% 10.57% 2.05% 91,170 19,489 71,681 4.11 2.18 1.17% 14.49% 2.69% 98,187 21,317 76,870 4.39 2.10 1.32% 14.03% 2.59% 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, 2023, 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 2023 | PAGE 11 Executive Leadership The Washington Trust Company (As of publication date) EDWARD O. HAN DY III Chairman and Chief Executive Officer MARY E. NOO NS President and Chief Operating Officer KRI STEN L. DISA NTO Senior Executive Vice President, Chief Human Resources Officer and Corporate Secretary RONALD S. OHSBERG, CPA Senior Executive Vice President, Chief Financial Officer and Treasurer WI LLIAM K. WR AY, S R. Senior Executive Vice President and Chief Risk Officer D EN NIS L . AL GIE RE Executive Vice President, Chief Compliance Officer and Director of Community Affairs RO LANDO A. LORA Executive Vice President, Chief Retail Lending Officer and Director of Community Lending AN TH ON Y A. BOTE LH O Executive Vice President and Chief Commercial Lending Officer J AMES A. MIGNONE Executive Vice President and Chief Information Officer EL IZABET H B. ECKEL Executive Vice President, Chief Marketing & Corporate Communications Officer D EBRA A. GORML EY Executive Vice President and Chief Retail Banking Officer Total Deposits KATHLEEN A. RYAN, ESQ. Executive Vice President and Chief Wealth Management Officer J ULIA ANNE M. SLOM Executive Vice President and Chief Commercial Real Estate Lending Officer MARIA N. J AN ES , CPA Executive Vice President, Chief Accounting Officer and Controller C. SCOT T OSTROWSKI Senior Vice President and Chief Audit Executive The Washington Trust Company Directors’ Advisory Council: • Alcino G. Almeida • Gary P. Bennett • Larry J. Hirsch • Barry G. Hittner • Katherine W. Hoxsie • Edward M. Mazze • Kathleen E. McKeough • 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 WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 12 Board of Directors Washington Trust Bancorp, Inc. (As of publication date) JOHN J. BOWE N Chancellor Emeritus, Johnson & Wales University ED WARD O. H AN DY III Chairman and Chief Executive Officer, Washington Trust Bancorp, Inc. STE VEN J. CRAN DA L L Vice President, Ashaway Line & Twine Mfg. Co. ROBERT A. DIM UCCIO , CPA Retired Chairman, President and Chief Executive Officer, Amica Mutual Insurance Company JOSEPH P. G EN CA RE LL A , CPA Retired Audit Partner, KPMG LLP MARK K. W. G IM Retired President and Chief Operating Officer, Washington Trust Bancorp, Inc. CONSTA NCE A. HOWES , ES Q. Retired Healthcare Executive J OS EPH J . M ARCAU RELE Retired Chairman and Chief Executive Officer, Washington Trust Bancorp, Inc. SAN DRA GL ASER PARRIL LO Retired President and Chief Executive Officer, Providence Mutual Fire Insurance Company Total Deposits D EBRA M . PAUL Retired Chief Executive Officer, Fellowship Health Resources, Inc. J OHN 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 L ISA M. STANTON Retired General Manager, Enterprise Strategy, American Express ANGEL TAVERAS, ESQ. Senior Counsel, Adler Pollock & Sheehan P.C. Officers of the Corporation: EDWARD O. HANDY III Chairman and Chief Executive Officer MARY E. NOONS President and Chief Operating Officer KRISTEN L. DISANTO Senior Executive Vice President, Chief Human Resources Officer and Corporate Secretary RONALD S. OHSBERG, CPA 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 2023 | PAGE 13 MASSACHUSETTS RHODE ISLAND Olneyville, RI Opening in 2024 CONNECTICUT Headquarters: Westerly, RI 27 Branch Offices 5 Wealth Management Offices 4 Commercial Lending Offices 7 Residential Mortgage Loan Offices * Operating as Washington Trust Mortgage Company WEBSITES • ir.washtrust.com • washtrust.com • washtrustmortgage.com • washtrustwealth.com TICKER SYMBOL • NASDAQ: WASH Stock Transfer and Dividend Disbursing Agent: Equiniti Trust Company, LLC 6201 15th Avenue, Brooklyn, NY 11219 800-852-0354 https://equiniti.com/us/ast-access/ Auditors: Crowe LLP, Grand Rapids, Michigan Counsel: Goodwin Procter LLP, Boston, Massachusetts The Corporation’s 2024 Proxy Statement and Annual Report on Form 10-K for the year ended December 31, 2023 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. 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. (As of publication date) WASHINGTON TRUST BANCORP, INC. | ANNUAL REPORT 2023 | PAGE 14 

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