Washington Trust Bancorp : Q3 2020 Fact Sheet

"Washington Trust's third quarter results reflect our success at generating solid earnings during the most challenging of economic times. We had good performances across key business lines, led by strong mortgage banking activity, increases in wealth management assets under administration, and in-market deposit growth. As we move forward, we do so cautiously, but with confidence in our team, our business model and our strong financial foundation."

- Edward O. Handy III, Chairman & CEO

Q3 2020 Highlights

• Returns on average equity and average assets for the third quarter were 13.99% and 1.24%, respectively, compared to 16.51% and 1.46%, respectively, in the preceding quarter.
• The provision for credit losses was $1.3 million in the second quarter, compared to $2.2 million in the preceding quarter.
• Mortgage banking revenues totaled $12.4 million for the third quarter, up by $7.5 million, or 155%, from the preceding quarter.
• Residential mortgage loan origination activity amounted to an all-time quarterly high of $510 million in the third quarter of 2020, up by $83.6 million, or 20%, from the preceding quarter.
• Total loans amounted to $4.3 billion at September 30, 2020, essentially flat from the end of the preceding quarter. Total loans were up by $504 million, or 13%, from a year ago.
• Total in-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.7 billion at September 30, 2020, up by $129 million, or 4%, from the end of the preceding quarter, and up by $546 million, or 17%, from a year ago.
• Cash dividend of $0.51 per share.

Washington Trust in the Community

Market Summary

Trading Symbol	WASH
Exchange	NASDAQ
Market Value ($M)	529
Stock Price	$30.66
As of September 30, 2020

		Loans	$3.9	$4.3
		$3.7
$3.2	$3.4

2016 2017 2018 2019 9/30/20

Commercial Residential Consumer

$ billions; at December 31st unless otherwise noted

Deposits

$4.3

$3.1 $3.2 $3.5 $3.5

2016 2017 2018 2019 9/30/20

Demand & NOW Money market & savings Time deposits

$ billions; at December 31st unless otherwise noted

Mortgage Banking Revenues

$33.3

Pictured left to right: Edward O. Handy III, Cedric

Huntley and Mark K.W. Gim

The Washington Trust Company's Charitable Foundation recently awarded The Nonviolence Institute with a $10,000 grant to support their Victim Services program.

"This no strings attached donation from Washington Trust helped us when we needed it most. Unfortunately, since the pandemic took hold, there has been a big increase in violence across the country and across our state. We were able to use these funds to support the work of our Victim Services team. Thank you, Washington Trust," said The Nonviolence Institute's Interim Executive Director, Cedric Huntley.

	$13.2	$11.4		$14.8
	$10.4
	2016	2017	2018	2019	YTD
	$ millions				9/30/20
		Cash Dividends
			$1.76	$2.00
		$1.54
	$1.46			$1.53

The Nonviolence Institute's Victim Services program is on the frontlines of responding to violence situations. The funds from the grant will help the Center provide victims with counseling resources, advocate for them in the court system, connect them with appropriate compensation, and provide healthy and safe housing and the mechanisms to help them sustain that housing. In addition, the funds will help the Victim Services team continue to build a peaceful community by consoling victims of violence, sustaining members of our community who need support when violent incidents have occurred, and educating professionals who deal directly with victims and their families.

2016	2017	2018	2019	YTD
Declared per share				9/30/20

23 Broad Street, Westerly, RI 02891

1-800-475-2265, x1566

ir.washtrust.com

Member FDIC

At 09/30/20

WASHINGTON TRUST BANCORP, INC.	Nasdaq: WASH
Financial Highlights	C&I Loans By Industry

	At or for the Quarters Ended
($ and shares in thousands, except per share amounts)	9/30/2020	6/302020	3/31/20	12/31/19
Balance Sheet ($000)
Total assets	$5,849,792	$5,876,960	$5,620,979	$5,292,659
Total loans	4,282,047	4,287,641	4,090,396	3,892,999
Total securities	913,850	938,446	917,392	899,490
Total deposits	4,285,693	4,101,436	3,706,314	3,498,882
Total shareholders' equity	527,693	520,163	508,597	503,492
Income Statement ($000) and Profitability
Net interest income	31,654	30,945	32,602	31,994
Provision for loan losses	1,325	2,200	7,036	0
Wealth management revenues	8,954	8,605	8,689	8,894
Mortgage banking revenues	12,353	14,851	6,096	3,669
Other noninterest income	4,161	2,864	5,142	4,055
Noninterest expenses	32,344	28,478	30,453	28,755
Net income	18,322	21,040	11,901	15,536
Return on average assets	1.24%	1.46%	0.89%	1.18%
Return on average equity	13.99%	16.51%	9.49%	12.24%
Net interest margin (taxable equivalent basis)	2.31%	2.31%	2.61%	2.61%
Balance Sheet Ratios/Capital
Total risk based capital	13.09%	12.78%	12.42%	12.94%
Tier 1 leverage ratio	8.77%	8.42%	8.77%	9.04%

Total portfolio: $822.3 million

Percent of total loans: 19%

Health care & social assistance

Manufacturing

11%

Retail

8%

Educational services

8%

Owner occupied and other real estaet 8%

Professional, scientific & technical 5%

Accommodation and food services 5%

Entertainment and recreation 4%

Information 4%

Transportation & warehousing 3%

Finance and insurance 3%

Public administration 3%

Other

At 09/30/20

23%

Equity to assets	9.02%	8.85%	9.05%	9.51%
Tangible equity / tangible assets; non-GAAP(1)	7.91%	7.74%	7.89%	8.28%
Asset Quality
Total past due loans to total loans	0.24%	0.34%	0.40%	0.40%
Nonperforming assets to total assets	0.25%	0.27%	0.32%	0.35%
Nonaccrual loans to total loans	0.34%	0.37%	0.44%	0.45%
Allowance for loan losses to total loans	1.00%	0.97%	0.97%	0.69%
Share Data:
Diluted earnings per share	$1.06	$1.21	$0.68	$0.89
Dividends declared per share	$0.51	$0.51	$0.51	$0.51
Book value per share	$30.57	$30.14	$29.48	$29.00
Tangible book value per share; non-GAAP(2)	$26.49	$26.04	$25.37	$24.90
Market value per share	$30.66	$32.75	$36.56	$53.79
Shares outstanding at end of period	17,260	17,260	17,252	17,363
Weighted average shares outstanding - diluted	17,317	17,292	17,441	17,436

1. GAAP shareholders' equity less goodwill & intangible assets divided by GAAP assets less goodwill & intangible assets
2. GAAP shareholders' equity less goodwill & intangible assets divided by shares outstanding

About Washington Trust

 $5.8 billion in assets

• Publicly-ownedholding company of The Washington Trust Company
• RI state-chartered commercial bank
• Founded in 1800; oldest community bank in the United States
• Personal banking, commercial banking, and wealth management services
• Market area of Rhode Island, eastern Massachusetts, and Connecticut
• • 23 branches
  • 5 wealth management offices
  • 7 residential mortgage loan offices
  • 3 commercial lending offices

15%

Commercial Real Estate

Total portfolio: $1.7 billion	At 09/30/20
Percent of total loans: 39%

Multi-Family Dwelling

33%

Retail

20%

Office

18%

Hospitality

9%

Healthcare

7%

Industrial & Warehouse

6%

Commercial Mixed Use

3%

Other

4%

Analyst Coverage

• American Capital Partners, LLC Nicole Gulino
• Boenning & Scattergood, Inc. Erik Zwick
• Compass Pt Rch & Trading LLC Laurie Hunsicker
• Keefe Bruyette & Woods Inc. Damon Delmonte
• Sandler O'Neill & Partners LP Mark Fitzgibbon

The financial information contained herein is unaudited, and qualified in its entirety by reference to Washington Trust's Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission and as updated by its Quarterly Reports on Form 10-Q.

23 Broad Street, Westerly, RI 02891

1-800-475-2265, x1566

ir.washtrust.com

Member FDIC