2016 Annual Report

Leadership
Board of Directors Dennis L. Algiere, Senior Vice President, Chief Compliance Officer
John J. Bowen, Chancellor, President and Chief Executive Officer, and Director of Community Affairs
Johnson & Wales University Colleen O. Anderson, Senior Vice President,
Steven J. Crandall, Vice President, Ashaway Line & Twine Mfg. Co. Wealth Management Support Services
Robert A. DiMuccio, CPA, Chairman, President and Chief Executive Michael T. Clarkin, Senior Vice President and
Officer, Amica Mutual Insurance Company Corporate Sales Manager
Edward O. Handy III, President and Chief Operating Officer, Joseph M. Confessore, Senior Vice President and Team Leader,
Washington Trust Bancorp, Inc. Commercial Banking
Barry G. Hittner, Esq., Retired Attorney Laura L. Davis, Senior Vice President, Lending Support Services
Katherine W. Hoxsie, CPA, Retired Vice President, Elizabeth B. Eckel, Senior Vice President, Marketing
Hoxsie Buick-Pontiac-GMC Truck, Inc. Alfred L. Grant, Senior Vice President, Mortgage Origination
Joseph J. MarcAurele, Chairman and Chief Executive Officer, Barbara K. Hart, Senior Vice President, Credit Risk
Washington Trust Bancorp, Inc. Robert R. Kent Jr., Senior Vice President and Team Leader,
Kathleen E. McKeough, Retired Senior Vice President of Human Commercial Banking
Resources, GTECH Holdings Corporation Charles R. Kineke, Senior Vice President, Chief Technology Officer
Victor J. Orsinger II, Esq., Law Office of Victor J. Orsinger II Thomas H. Klump, Senior Vice President, Bank Operations
H. Douglas Randall III, Chief Executive Officer, Randall, Realtors, James A. Mignone, Senior Vice President,
Kinlin Grover Real Estate, Page Taft Real Estate, Chief Information Security Officer
Pequot Commercial and Kinlin Grover Commercial C. Scott Ostrowski, Senior Vice President, Internal Audit
Edwin J. Santos, Chairman, Prospect CharterCARE, LLC Timothy M. Pickering, Senior Vice President,
John F. Treanor, Retired President and Chief Operating Officer, Commercial Real Estate Group
Washington Trust Bancorp, Inc. Kathleen A. Ryan, Esq., Senior Vice President,
Client Services and Trust and Estate Services
L. Peter Sheehan, Senior Vice President,
Officers of the Corporation Wealth Management Investments
Joseph J. MarcAurele, Chairman and Chief Executive Officer Julia Anne M. Slom, Senior Vice President and Team Leader,
Edward O. Handy III, President and Chief Operating Officer Commercial Real Estate Group
David V. Devault, Vice Chair, Secretary and Chief Financial Officer Richard T. Tjader, Senior Vice President and
Mark K. W. Gim, Senior Executive Vice President, Director of Project Management
Wealth Management, and Treasurer
Maria N. Janes, CPA, Executive Vice President and Controller
Weston Financial Group, Inc.
John W. Filoon III, President and Chief Operating Officer
The Washington Trust Company Directors’ Advisory Council Kerry P. Falco, CPA, Managing Director and
Alcino G. Almeida Brendan P. O’Donnell Senior Financial Counselor
Gary P. Bennett Joseph H. Potter Maria A. Staffiere, Managing Director
Larry J. Hirsch Joyce Olson Resnikoff Ronald A. Sugameli, Esq., Managing Director and
Joseph J. Kirby Patrick J. Shanahan Jr. Chief Investment Officer
Jacques de Laporte James P. Sullivan Nicole M. Tremblay, Esq., Senior Vice President and
Edward M. Mazze Neil H. Thorp Chief Compliance Officer
James W. McCormick Jr. John C. Warren
Thomas F. Moore William Blunt White
Halsey Associates, Inc.
James S. Zoldy Jr., President
Senior Management of The Washington Trust Company Kenneth J. Julian, Executive Vice President
Joseph J. MarcAurele, Chairman and Chief Executive Officer
Edward O. Handy III, President and Chief Operating Officer
David V. Devault, Vice Chair, Secretary and Chief Financial Officer
Mark K. W. Gim, Senior Executive Vice President, As of publication date
Wealth Management, and Treasurer
Kristen L. DiSanto, Executive Vice President, Human Resources
Debra A. Gormley, Executive Vice President, Retail Banking
James M. Hagerty, Executive Vice President and
Chief Lending Officer
Maria N. Janes, CPA, Executive Vice President and Controller
Mary E. Noons, Executive Vice President, Retail Lending
William K. Wray Sr., Executive Vice President and Chief Risk Officer
 Message to Sharehold
We are proud to report that Washington Trust posted another Wealth management assets under administration also
record performance in 2016; our seventh consecutive year of peaked to an all-time high by year-end. We continued to
increased annual earnings. Once again, it was a collective effort, make investments in technology to enhance our client
as our experienced management team and our talented experience and position the division for future growth.
employees worked together and focused on achieving our We recently relocated our Halsey Associates headquarters
corporate goals. We were successful in growing our core to take advantage of opportunities and synergies with our
business lines and expanding our local and regional footprint, mortgage banking and commercial lending efforts in
while maintaining a disciplined approach to pricing and expense the New Haven, Connecticut market.
management. All noteworthy accomplishments in a very
challenging operating environment. • Our commercial lending group had good momentum and
consistent growth throughout the year, however, overall
Our record earnings reflect the strength and diversity of our growth was masked by heavy pay-offs. We generated quality
business model, as our ability to generate a consistent stream of commercial real estate and commercial and industrial
revenues, from both interest and non-interest income sources, loans, which resulted in new cash management and
has been key to our success over time. In 2016 we achieved solid commercial deposit relationships.
performances from all of our major business lines:
• Our retail banking area remains a key part of our
• Our mortgage banking area had another great year, as community banking model and we opened a contemporary
mortgage banking revenues were up significantly from the branch on the East Side of Providence in 2016 to expand
previous year. We had good production from throughout the our presence in Rhode Island’s capital city. Deposits
region and generated a healthy mix of both purchase and surpassed the $3 billion mark, led by growth in low-cost
refinance loans. In July we opened a mortgage production demand deposits and NOW accounts.
office in Wellesley, Massachusetts, an affluent suburb
of Boston. For more than 216 years, Washington Trust has served as a trusted
advisor for generations of depositors, borrowers and investors. Our
• Our wealth management division once again proved to be hallmark has been our five-star customer service. Technology
a key contributor to non-interest income, as wealth continues to change our industry, providing new and different
management revenues reached a record level in 2016. ways for us to serve our customers. In recent years we have

1. 2.
ers
enhanced online, mobile, and telephone solutions to make banking
easier, faster, and more secure for our customers. In 2016 we
introduced several new technology-based customer conveniences,
including EMV chip debit cards, online mortgage applications,
wealth management portal upgrades, and Touch ID and Quick
Balance mobile banking solutions. Going forward, we expect
technology will bring even more changes to our industry and we 8.
will continue to evaluate and offer those solutions that provide the
best security, service, and convenience for our customers.

Washington Trust has a long and successful history and our 2016
performance once again ranks us among the nation’s top-performing
mid-sized banks. We are pleased to have provided consistent returns
and paid a healthy dividend to our shareholders. We appreciate the
hard work and dedication of our management team and employees
and thank our shareholders for their continued support and
commitment to our Corporation.
7.

Joseph J. MarcAurele
Chairman and Chief Executive Officer

Edward O. Handy III

President and Chief Operating Officer
6.

3. 4. 5.
 Financial
Cash Dividends
Net Income Closing Stock Price
Declared Per Share
$1.36 $1.46
$43.5 $46.5 $56.05
$40.8 $1.22
$40.18 $39.52

2014 2015 2016 2014 2015 2016 2014 2015 2016

In Millions In Dollars Year-end; In Dollars

Total Revenues* Total Loans Total Deposits

$162.3 $175.6 $3.2 $3.1

$151.0 $2.9 $3.0 $2.8 $2.9

2014 2015 2016 2014 2015 2016 2014 2015 2016

In Millions Year-end; In Billions Year-end; In Billions
Other* Consumer Time Deposits
Mortgage Banking Revenue Residential Money Market & Savings
Wealth Management Revenues Commercial Demand & NOW
Net Interest Income

Wealth Management Mortgage Originations

Assets Under Administration

$5.8 $6.1 $865.3

$5.1 $700.3 $758.7

2014 2015 2016 2014 2015 2016

Year-end; In Billions Including Brokered Loans as Agent;
In Millions
*Excludes $7.6 million of net gain on sale and pre-sale revenue from merchant processing service business line in 2014.
Highlights
Note: Font and layout of the information in this file are to be determined by E. Eckel.

Financial Highlights

At or for the years ended December 31,

Dollars in thousands, except per share amounts 2016 2015 2014 2013 2012
Financial Condition
Total assets $4,381,115 $3,771,604 $3,586,874 $3,188,867 $3,071,884
Total securities 755,545 395,067 382,884 422,808 415,879
Total loans 3,234,371 3,013,127 2,859,276 2,462,884 2,294,003
Allowance for loan losses 26,004 27,069 28,023 27,886 30,873
Total deposits 3,063,752 2,934,255 2,754,818 2,505,321 2,312,631
Total shareholders’ equity 390,804 375,388 346,279 329,646 295,652
Book value per share 22.76 22.06 20.68 19.84 18.05
Total risk-based capital ratio 12.26% 12.58% 12.56% 13.29% 13.26%
Equity to assets 8.92% 9.95% 9.65% 10.34% 9.62%

Operating Results
Net interest income $110,478 $103,982 $99,505 $91,785 $90,696
Provision for loan losses 5,650 1,050 1,850 2,400 2,700
Wealth management revenues 37,569 35,416 33,378 31,825 29,641
Mortgage banking revenues 13,183 9,901 7,152 13,293 14,148
Net income 46,481 43,465 40,824 36,153 35,074
Diluted earnings per common share 2.70 2.54 2.41 2.16 2.13
Cash dividends declared per share 1.46 1.36 1.22 1.03 0.94
Return on average assets 1.16% 1.19% 1.23% 1.17% 1.16%
Return on average equity 11.96% 12.00% 11.87% 11.65% 11.97%
Net interest margin (taxable equivalent basis) 3.02% 3.12% 3.28% 3.28% 3.29%

Asset Quality
Nonperforming assets to total assets 0.53% 0.58% 0.48% 0.62% 0.83%
Total past due loans to total loans 0.76% 0.58% 0.63% 0.89% 1.22%
Allowance for loan losses to total loans 0.80% 0.90% 0.98% 1.13% 1.35%
Net loan charge-offs to average loans 0.21% 0.07% 0.07% 0.23% 0.07%

Stock Transfer and Dividend Disbursing Agent:

American Stock Transfer & Trust Company, 6201 15th Avenue, Brooklyn, NY 11219, 800-852-0354, www.amstock.com

The Corporation’s 2017 Proxy Statement, Form 10-K and Annual Report for 2016 are available
online by visiting the Corporation’s website www.washtrustbancorp.com/proxy,
by calling the Corporation’s toll-free number 800-475-2265 extension 1566,
or by email at [email protected].

Auditors: KPMG, LLP, Providence, Rhode Island

Counsel: Goodwin Procter LLP, Boston, Massachusetts

This report contains certain statements that may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Secu-
rities 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, 2016, 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.
Locations
Branch Offices Sweet Meadows Office MYSTIC, CT Wealth Management Offices
20 Point Judith Road McQuade’s Marketplace
HEADQUARTERS Narragansett, RI 02882 14 Clara Drive PROVIDENCE, RI
23 Broad Street 401-782-1000 Mystic, CT 06355 10 Weybosset Street, Suite 200
Westerly, RI 02891 860-572-2058 Providence, RI 02903
401-348-1200 NORTH KINGSTOWN, RI 401-654-4801
North Kingstown Office Commercial Banking Offices
BLOCK ISLAND, RI 7625 Post Road NARRAGANSETT, RI
Block Island Office North Kingstown, RI 02852 PROVIDENCE, RI 20 Point Judith Road
Ocean Avenue 401-295-4700 10 Weybosset Street, Suite 100 Narragansett, RI 02882
Block Island, RI 02807 Providence, RI 02903 401-782-1000
401-466-7710 PROVIDENCE, RI 401-331-5090
East Side Office WESTERLY, RI
CHARLESTOWN, RI 229 Waterman Street WARWICK, RI 23 Broad Street
Charlestown Office Providence, RI 02906 236 Centerville Road Westerly, RI 02891
4137 Old Post Road 401-443-2800 Warwick, RI 02886 401-348-1238
Charlestown, RI 02813 401-739-2353
401-364-4000 Providence Office WELLESLEY, MA
156 Westminster Street WESTERLY, RI Weston Financial Group
COVENTRY, RI Providence, RI 02903 23 Broad Street Wellesley Office Park
Coventry Office 401-421-3600 Westerly, RI 02891 100 William Street, Suite 200
Opening 2017 401-348-1200 Wellesley, MA 02481
732 Tiogue Avenue RICHMOND, RI 781-235-7055
Coventry, RI 02816 Richmond Office Mortgage Offices
1200 Main Street NEW HAVEN, CT
CRANSTON, RI Wyoming, RI 02898 WARWICK, RI Halsey Associates
Oaklawn Avenue Office 401-539-2427 171 Service Avenue One Century Tower
1203 Oaklawn Avenue Warwick, RI 02886 265 Church Street, Suite 1006
Cranston, RI 02920 SOUTH KINGSTOWN, RI 401-681-4224 New Haven, CT 06510
401-732-0049 Wakefield Office 203-772-0740
730 Kingstown Road DARIEN, CT
Plainfield Pike Office Wakefield, RI 02879 1025 Boston Post Road Customer Solutions Center
2174 Plainfield Pike 401-782-4200 Darien, CT 06820
Cranston, RI 02921 203-309-5571 RI: 401-348-1200
401-383-8223 WARWICK, RI CT: 860-443-1508
Centerville Road Office GLASTONBURY, CT* Toll-free: 800-475-2265
Reservoir Avenue Office 236 Centerville Road 180 Glastonbury Boulevard, Suite 107
645 Reservoir Avenue Warwick, RI 02886 Glastonbury, CT 06033 Websites
Cranston, RI 02910 401-739-2353 860-430-9900
401-946-1004 www.washtrustbancorp.com
Governor Francis Office BRAINTREE, MA* www.washtrust.com
EAST PROVIDENCE, RI 1473 Warwick Avenue 25 Braintree Hill Office Park, Suite 309 www.washtrustmortgage.com
East Providence Office Warwick, RI 02888 Braintree, MA 02184 www.washtrustwealth.com
587 Taunton Avenue 401-921-2500 781-428-7970 www.westonfinancial.net
East Providence, RI 02914 www.halseyassociates.com
401-383-8800 WESTERLY, RI BURLINGTON, MA*
Main Office 25 Mall Road, Suite 408 Ticker Symbol
Rumford Office 23 Broad Street Burlington, MA 01803
330 Newport Avenue Westerly, RI 02891 781-229-2004 NASDAQ: WASH
Rumford, RI 02916 401-348-1200
401-228-6555 SHARON, MA*
Franklin Street Office One Merchant Street, Suite 102
JOHNSTON, RI 126 Franklin Street Sharon, MA 02067
Johnston Office Westerly, RI 02891 781-784-3089
1383 Atwood Avenue 401-348-1367
Johnston, RI 02919 WELLESLEY, MA*
401-654-4837 McQuade’s Marketplace 62 Walnut Street, Suite 102
106 Main Street Wellesley, MA 02481
NARRAGANSETT, RI Westerly, RI 02891 781-489-3175
Bonnet Shores Office 401-348-1201
885 Boston Neck Road *Operating as Washington Trust Mortgage Company
Narragansett, RI 02882
401-782-4800
 Parent Company of The Washington Trust Company

The Corporation has an Affirmative Action Plan and is an Equal Opportunity Employer.
Washington Trust is also a member of the FDIC and an Equal Housing Lender

1. Our Annual Peanut Butter Drive helps feed local families in need; collecting almost 120 tons of peanut butter over the past 16 years. 2. Our mortgage
team helps homeowners, from throughout the southern New England region, secure home financing. 3. Our employees serve as “trusted advisors,” offering
important information on financial matters and topics of interest. 4. Networking and business development activities enable us to develop relationships with
new clients and key centers of influence. 5. We are recognized as one of Rhode Island’s “Best Places to Work,” earning the Providence Business News award
for the sixth consecutive year. 6. Our annual Community Shred-it Day is an important fraud protection event, offering a safe and free method to dispose of
confidential information. 7. Our commercial lending team provides millions of dollars in financing to businesses throughout our market area. 8. Members of
executive management serve in a leadership capacity for major organizations and groups within our region and the industry.