Washington Trust Bancorp | research notes

Washington Trust Bancorp: A Leading Financial Institution in the Northeast

Washington Trust Bancorp, Inc. (NASDAQ: WASH) is a publicly traded financial services holding company headquartered in Westerly, Rhode Island. It operates through its wholly-owned subsidiary, Washington Trust Company, a state-chartered commercial bank.

History and Legacy

Founded in 1800, Washington Trust is one of the oldest banks in the United States. It has a long and distinguished history of providing banking and financial services to individuals, businesses, and organizations throughout the Northeast. over the years, the bank has expanded its presence through a series of acquisitions, most notably the purchase of BankRI in 2019.

Core Business Lines

Washington Trust offers a comprehensive range of financial products and services including:

• Commercial Banking: Provides lending, cash management, and advisory services to businesses of all sizes.
• Retail Banking: Offers checking and savings accounts, mortgages, personal loans, and other consumer banking products.
• Wealth Management: Manages investment portfolios and provides financial planning advice for individuals, families, and businesses.
• Trust and Custody Services: Acts as trustee, executor, and custodian for trusts and estates.
• Insurance Services: Offers property, casualty, and life insurance through its subsidiary, WashTrust Insurance Agency.

Geographic Footprint

Washington Trust operates over 200 branches and offices in Rhode Island, Massachusetts, Connecticut, New Hampshire, and Maine. It also has a loan production office in New York.

Financial Performance

Washington Trust Bancorp is a financially sound institution with a strong track record of profitability and growth. In 2023, the company reported:

• Net income of $265.6 million
• Total assets of over $17 billion
• Return on average assets of 1.03%

Leadership and Governance

Washington Trust is led by a experienced management team with deep knowledge of the financial services industry. The company's board of directors is comprised of a diverse group of business professionals and community leaders.

Community Involvement

Washington Trust is committed to giving back to the communities it serves. The bank supports a wide range of non-profit organizations and local initiatives through its Corporate Social Responsibility program.

Conclusion

Washington Trust Bancorp, Inc. is a leading financial institution in the Northeast with a rich history and a commitment to providing exceptional financial services to its customers. With a diverse business mix, a strong financial performance, and a deep understanding of its markets, the company is well-positioned for continued success in the years to come.

Business Model of Washington Trust Bancorp

Washington Trust Bancorp is a regional bank holding company that provides a broad range of financial products and services to individuals, businesses, and municipalities in the Northeast United States. Its core business model involves:

• Community Banking: Operating bank branches and providing traditional banking services such as checking and savings accounts, loans, and mortgages.
• Wealth Management: Offering investment management, trust services, and financial planning to high-net-worth individuals and institutions.
• Commercial Lending: Providing credit to businesses of various sizes and industries.
• Mortgage Banking: Originating and servicing residential and commercial mortgages.

Advantages of Washington Trust Bancorp's Business Model

Washington Trust Bancorp's business model provides several advantages over its competitors:

1. Geographic Focus: The company operates in a defined geographic region (Northeast US), which allows it to establish deep customer relationships and cater to the specific needs of local communities.

2. Strong Community Banking Presence: Its extensive branch network and local expertise enable Washington Trust to build strong relationships with customers and develop a loyal customer base.

3. Diversified Revenue Streams: The company's diversified business lines generate revenue from multiple sources, reducing its reliance on any single business segment.

4. Strong Balance Sheet and Capitalization: Washington Trust maintains a strong balance sheet with ample capital and liquidity to support its growth and withstand economic downturns.

5. Relationship-Driven Sales Approach: The company emphasizes building personal relationships with customers and providing tailored financial solutions to meet their unique needs.

6. Focus on Risk Management: Washington Trust has a comprehensive risk management framework in place to identify, assess, and mitigate potential risks that could impact its business.

7. Technology Investments: The company invests in technology platforms to enhance customer convenience, streamline operations, and improve efficiency.

8. Acquisition Strategy: Washington Trust has a history of acquiring smaller banks to expand its geographic footprint and customer base.

Washington Trust Bancorp, Inc. (WTB)

Overview

Washington Trust Bancorp, Inc. is a publicly traded financial holding company headquartered in Westerly, Rhode Island. It provides a range of banking and financial services to individuals, businesses, and municipalities in the Northeast region of the United States.

Business Segments

WTB operates through two primary business segments:

• Commercial Banking: Provides a full suite of commercial banking services, including lending, deposits, cash management, and merchant services.
• Wealth Management: Offers investment advisory, trust, estate planning, and other wealth management services.

Geographic Footprint

WTB's operations are concentrated in the following states:

• Rhode Island
• Connecticut
• Massachusetts
• Maine
• New Hampshire

Financial Performance

WTB has a strong financial track record, characterized by consistent growth in its key metrics:

• Net income: Has increased steadily in recent years, reaching $106.3 million in 2022.
• Return on average assets (ROAA): Consistently exceeds the industry average, standing at 1.25% in 2022.
• Return on equity (ROE): Strong at 13.76% in 2022.
• Asset quality: Low loan delinquency and charge-off rates.

Outlook

WTB's outlook is positive, supported by several factors:

• Strong financial performance: The company continues to deliver solid financial results, providing a solid foundation for future growth.
• Acquisitions: WTB has a track record of successful acquisitions, which has expanded its geographic reach and product offerings.
• Technology investments: The company is investing heavily in technology to enhance its customer experience and drive efficiency.
• Favorable economic conditions: The Northeast region remains a growing and prosperous market, providing ample opportunities for WTB's services.

Opportunities

WTB has identified several areas of opportunity for future growth:

• Market expansion: The company plans to enter new markets in the Northeast region.
• Expansion of wealth management services: WTB is aiming to grow its wealth management business through acquisitions and organic growth.
• Digital banking: The company is investing in digital channels to improve customer convenience and attract new clients.

Challenges

WTB faces some challenges in the future, including:

• Competition: The banking industry is highly competitive, and WTB faces competition from both large national banks and regional financial institutions.
• Interest rate risk: Rising interest rates can put pressure on WTB's net interest margin.
• Economic downturns: Economic downturns can impact WTB's loan portfolio and its ability to generate revenue.

Overall, Washington Trust Bancorp, Inc. is a well-positioned financial institution with a strong track record of performance and a positive outlook for future growth. The company's focus on delivering superior customer service, investing in technology, and expanding its offerings should continue to drive its success in the years to come.

Companies Similar to Washington Trust Bancorp

1. Columbia Banking System

• Website: https://www.columbiacb.com/
• Review: Columbia Banking System is a regional bank holding company headquartered in Tacoma, Washington. It provides a range of banking, investment, and trust services to individuals, businesses, and municipalities. Customers appreciate the bank's strong financial performance, local presence, and commitment to community involvement.

2. Independent Bank Corp

• Website: https://www.independentbank.com/
• Review: Independent Bank Corp is a bank holding company headquartered in Rockland, Massachusetts. It operates a network of community banks in Massachusetts, New Hampshire, and New York. Customers value the bank's personalized service, local decision-making, and support for local businesses.

3. Berkshire Hills Bancorp

• Website: https://www.berkshirehillsbancorp.com/
• Review: Berkshire Hills Bancorp is a bank holding company headquartered in Pittsfield, Massachusetts. It provides a wide range of banking services, including personal banking, business banking, and wealth management. Customers praise the bank's friendly staff, convenient locations, and commitment to customer satisfaction.

4. M&T Bank

• Website: https://www.mtb.com/
• Review: M&T Bank is a regional bank holding company headquartered in Buffalo, New York. It has a presence in New York, Pennsylvania, Maryland, Delaware, Virginia, West Virginia, and New Jersey. Customers appreciate the bank's strong financial foundation, wide array of products and services, and dedication to providing excellent customer service.

5. Webster Financial Corporation

• Website: https://www.websterbank.com/
• Review: Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. It operates a network of banks and branches in the Northeast and mid-Atlantic regions. Customers value the bank's convenient locations, competitive rates, and commitment to supporting local communities.

History of Washington Trust Bancorp

1806: The Rhode Island Union Bank is founded in Newport, Rhode Island.

1811: The Union Bank of Rhode Island opens a branch in Providence, Rhode Island.

1865: The Union Bank of Rhode Island is renamed the Washington National Bank.

1900: The Washington National Bank acquires the Providence Trust Company.

1910: The Washington Trust Company is formed through the merger of the Washington National Bank and the Providence Trust Company.

1949: The Washington Trust Company acquires the Industrial National Bank of Providence.

1960: The Washington Trust Company acquires the Narragansett Trust Company.

1970: The Washington Trust Company acquires the United States Trust Company.

1980: The Washington Trust Company acquires the Rhode Island National Bank.

1990: The Washington Trust Company acquires the Capitol Bank & Trust Company.

1991: The Washington Trust Company is renamed Washington Trust Bancorp.

1995: Washington Trust Bancorp acquires the First National Bank of Boston's Rhode Island operations.

2000: Washington Trust Bancorp acquires the Bank of Boston's Connecticut and Massachusetts operations.

2005: Washington Trust Bancorp acquires the Banknorth Group of banks.

2007: Washington Trust Bancorp acquires the Saxon National Bank.

2009: Washington Trust Bancorp acquires the Sovereign Bank's Connecticut operations.

2017: Washington Trust Bancorp acquires the Commonwealth National Bank.

2019: Washington Trust Bancorp acquires the United National Bank.

Present: Washington Trust Bancorp is the largest banking company headquartered in Rhode Island, with over $12 billion in assets. The company operates over 60 branches in Rhode Island, Connecticut, Massachusetts, and New York.

2023

• January 2023: Washington Trust Bancorp announced a partnership with Fiserv to enhance its digital banking platform.

2022

• October 2022: The company completed its acquisition of OceanFirst Financial Corp., expanding its presence in New Jersey and the New York metropolitan area.
• July 2022: Washington Trust Bancorp reported strong second-quarter earnings, driven by growth in loans and deposits.

2021

• December 2021: The company announced plans to acquire OceanFirst Financial Corp. for approximately $9 billion.
• July 2021: Washington Trust Bancorp reported record net income for the first half of the year.
• January 2021: The company completed its acquisition of Rockland Trust Company, a significant expansion in Massachusetts.

Washington Trust Bancorp: A Trustworthy Financial Partner

As a valued customer of Washington Trust Bancorp, I am delighted to share my positive experience with this exceptional financial institution.

Personalized Service: From the very beginning, I was impressed by the personalized service provided by Washington Trust. Their knowledgeable and friendly staff took the time to understand my financial needs and goals, tailoring their recommendations accordingly.

Innovative Products: Washington Trust offers a wide range of innovative financial products designed to meet the evolving needs of their customers. From mobile banking and online bill pay to digital account opening, they embrace technology to enhance the customer experience.

Competitive Rates: Washington Trust consistently offers competitive interest rates on savings accounts and certificates of deposit, helping me grow my money faster. Their mortgage rates and business loan terms are also highly competitive, providing me with access to affordable financing.

Strong Financial Performance: As a financial institution, Washington Trust maintains a strong financial position. Their prudent risk management practices and commitment to customer satisfaction have earned them a solid reputation in the industry.

Community Involvement: Beyond providing financial services, Washington Trust actively supports the communities it serves. They participate in local events, donate to charitable organizations, and invest in community development initiatives.

Seamless Digital Experience: Washington Trust's digital banking platform is user-friendly and convenient. I can easily access my accounts, make transactions, and contact customer service with just a few clicks. The mobile app is particularly valuable for managing my finances on the go.

Professional and Responsive Support: The customer service team at Washington Trust is always prompt and professional. They are knowledgeable about the bank's products and services and go the extra mile to resolve any issues or answer my questions.

Conclusion: Based on my experience, I highly recommend Washington Trust Bancorp to anyone seeking a trustworthy financial partner. Their personalized service, innovative products, competitive rates, strong financial performance, community involvement, and seamless digital experience make them an exceptional choice.

Unlock Financial Freedom with Washington Trust Bancorp

Are you seeking a reliable and innovative banking partner? Look no further than Washington Trust Bancorp! Our customer-centric approach and extensive suite of financial solutions have consistently earned us accolades and industry recognition.

Why Choose Washington Trust Bancorp?

• Financial Expertise: Drawing upon decades of experience, our team of financial experts is dedicated to helping you achieve your financial goals.
• Comprehensive Portfolio: From personal banking to wealth management and business solutions, we offer a wide range of services tailored to your unique needs.
• Personalized Service: We believe in building strong relationships with our customers. Our dedicated bankers are always available to provide guidance and support.

Digital Banking Convenience:

At Washington Trust Bancorp, we understand the importance of digital banking convenience. That's why we've invested in a state-of-the-art online platform that empowers you to:

• Manage your accounts anywhere, anytime
• Make transfers and payments seamlessly
• Monitor investments in real-time
• Apply for loans quickly and easily
• Access financial planning tools to optimize your finances

Community Involvement:

As a community bank, we are deeply committed to supporting the regions we serve. We actively engage in initiatives that strengthen local businesses, promote economic development, and enhance the well-being of our neighbors.

Visit Our Website Today!

To learn more about our comprehensive offerings and experience the exceptional service that Washington Trust Bancorp provides, visit our website: www.watrust.bank

Discover how we can help you:

• Grow your savings with competitive interest rates
• Finance your dreams with affordable loans and mortgages
• Invest wisely for a secure financial future
• Protect your loved ones with insurance and estate planning
• Manage your business affairs with tailored solutions

Join the Washington Trust Bancorp family and unlock the door to financial freedom. We look forward to partnering with you on your financial journey.

Main Supplier of Washington Trust Bancorp

Name: Fiserv, Inc.

Website: www.fiserv.com

Services Provided:

Fiserv provides a wide range of technology solutions and services to financial institutions, including:

• Core banking systems
• Digital banking solutions
• Payment processing services
• Fraud detection and risk management
• Data analytics and reporting
• Cybersecurity and compliance solutions

Significance of the Supplier Relationship:

Fiserv is a critical supplier to Washington Trust Bancorp, providing the core infrastructure and technology that supports the bank's operations. The two companies have a long-standing relationship, with Fiserv serving as Washington Trust's primary technology provider for over a decade.

Fiserv's solutions enable Washington Trust to provide a seamless and efficient banking experience to its customers, including:

• Online and mobile banking
• Bill payments and money transfers
• Fraud protection
• Data-driven insights and personalized recommendations

Additional Information:

• Fiserv is a global provider of financial technology solutions, with operations in more than 100 countries.
• The company employs over 40,000 people worldwide.
• Fiserv is headquartered in Brookfield, Wisconsin, USA.

Washington Trust Bancorp's Main Customers

Washington Trust Bancorp is a financial holding company that primarily serves businesses and individuals in the Northeast United States. Its main customers include:

Commercial Banking

• Small and mid-sized businesses
• Non-profit organizations
• Healthcare providers
• Real estate developers

Consumer Banking

• Individuals and families
• High-net-worth individuals
• Trust and estate clients

Wealth Management

• High-net-worth individuals
• Families
• Foundations and endowments

Mortgage Banking

• Homebuyers and homeowners
• Real estate investors

Insurance Services

• Businesses and individuals seeking property and casualty insurance

Industry Focus

Washington Trust Bancorp has a strong focus on the following industries:

• Healthcare
• Manufacturing
• Professional services
• Real estate
• Education

Downstream Companies

Washington Trust Bancorp's main operating subsidiary is Washington Trust Company. It offers a range of financial services to its customers, including:

• Commercial and consumer banking
• Wealth management
• Mortgage banking
• Insurance services

Website

www.washtrust.com

Key Revenue Streams of Washington Trust Bancorp

Washington Trust Bancorp generates revenue from various sources, which include:

1. Net Interest Income:

• Estimated Annual Revenue: $250-$300 million
• This income is earned from the spread between interest charged on loans and debt securities and interest paid on deposits and other borrowings.

2. Non-Interest Income:

• Estimated Annual Revenue: $50-$100 million
• Non-interest income includes revenue from service charges on deposit accounts, wealth management fees, loan origination fees, and other transactional services.

3. Mortgage Banking:

• Estimated Annual Revenue: $25-$50 million
• Washington Trust Bancorp originates and sells residential and commercial mortgages, generating income from loan fees and servicing revenue.

4. Insurance:

• Estimated Annual Revenue: $10-$25 million
• The company offers insurance products through its subsidiary, Washington Trust Insurance Agency, generating revenue from premiums and commissions.

5. Other Income:

• Estimated Annual Revenue: $5-$15 million
• This category includes income from equipment leasing, investment advisory services, and other ancillary sources.

Total Estimated Annual Revenue: $340-$490 million

Note: These revenue estimates are based on financial data from Washington Trust Bancorp's annual reports and industry benchmarks. Actual revenue may vary slightly.

Key Partners of Washington Trust Bancorp, Inc.

1. Fiserv, Inc.

• Website: https://www.fiserv.com/en/
• Nature of Partnership: Provides core banking and payment solutions

2. Jack Henry & Associates, Inc.

• Website: https://www.jackhenry.com/
• Nature of Partnership: Provides digital banking, lending, and payment processing technologies

3. Ellie Mae, Inc.

• Website: https://www.elliemae.com/
• Nature of Partnership: Provides mortgage loan origination software

4. Visa Inc.

• Website: https://www.visa.com/
• Nature of Partnership: Provides debit and credit card issuing and processing services

5. Mastercard Inc.

• Website: https://www.mastercard.com/
• Nature of Partnership: Provides debit and credit card issuing and processing services

6. The Clearing House Payments Company L.L.C.

• Website: https://www.theclearinghouse.org/
• Nature of Partnership: Provides real-time payment processing services

7. Plaid Inc.

• Website: https://plaid.com/
• Nature of Partnership: Provides account aggregation and data services

8. Finicity Corporation

• Website: https://www.finicity.com/
• Nature of Partnership: Provides account aggregation and data services

9. Toast, Inc.

• Website: https://pos.toasttab.com/
• Nature of Partnership: Provides point-of-sale systems for restaurants

10. Ingo Money, Inc.

• Website: https://www.ingomoney.com/
• Nature of Partnership: Provides mobile check deposit services

Key Cost Structure of Washington Trust Bancorp

1. Interest Expense

• Estimated annual cost: $300 million (2023)
• Represents the interest paid on deposits, borrowings, and other financial obligations.
• Driven by rising interest rates and competition for customer deposits.

2. Salaries and Benefits

• Estimated annual cost: $200 million (2023)
• Includes compensation, bonuses, and benefits for employees across all levels of the organization.
• Depends on the bank's talent acquisition and retention strategies.

3. Occupancy and Equipment

• Estimated annual cost: $50 million (2023)
• Covers rent, utilities, technology infrastructure, and maintenance of physical locations.
• Influenced by the bank's branch network expansion or consolidation plans.

4. Technology and Innovation

• Estimated annual cost: $40 million (2023)
• Includes investments in software, data analytics, and digital banking initiatives.
• Essential for enhancing customer experience and efficiency.

5. Marketing and Advertising

• Estimated annual cost: $30 million (2023)
• Used to promote products and services, acquire new customers, and build brand awareness.
• Varies based on the bank's marketing campaigns and target audience.

6. Other Operating Expenses

• Estimated annual cost: $100 million (2023)
• Includes office supplies, legal fees, insurance, and administrative costs.
• Affected by the size and complexity of the bank's operations.

7. Loan Loss Provision

• Estimated annual cost: $100 million (2023)
• Provision for potential losses on loans due to defaults or other factors.
• Varies based on economic conditions and the bank's credit risk management practices.

Total Estimated Annual Cost: $820 million

Note: These cost estimates are approximations based on the company's financial statements and industry data. Actual costs may vary.

Sales Channels and Estimated Annual Sales

Washington Trust Bancorp is a bank holding company headquartered in Westerly, Rhode Island. The company operates through a network of branches, ATMs, and online banking services. Washington Trust Bancorp offers a range of financial products and services to individuals, businesses, and institutions, including:

• Checking and savings accounts
• Loans (residential mortgages, commercial loans, and consumer loans)
• Investment services
• Trust and estate planning services
• Insurance products

Sales Channels

Washington Trust Bancorp primarily generates sales through the following channels:

• Branches: The company has a network of over 200 branches located in Rhode Island, Connecticut, and Massachusetts. Branches provide in-person banking services and allow customers to open accounts, make deposits and withdrawals, and apply for loans.
• ATMs: Washington Trust Bancorp operates over 300 ATMs located throughout its service area. ATMs allow customers to access their accounts 24/7 and perform basic banking transactions, such as cash withdrawals, deposits, and balance inquiries.
• Online banking: The company's online banking platform allows customers to manage their accounts, make payments, and transfer funds from any internet-connected device.
• Mobile banking: Washington Trust Bancorp also offers a mobile banking app that allows customers to access their accounts, make deposits, and transfer funds using their smartphones or tablets.

Estimated Annual Sales

Washington Trust Bancorp's estimated annual sales are approximately $1.8 billion (based on its most recent financial reports). The company's revenue is primarily driven by the following sources:

• Net interest income: Income earned on loans, investments, and other interest-bearing assets.
• Non-interest income: Income generated from fees, commissions, and other non-interest sources, such as trust and estate planning services, insurance products, and ATM fees.

Breakdown by Sales Channel

The estimated annual sales by sales channel are as follows:

• Branches: 60%
• ATMs: 20%
• Online banking: 15%
• Mobile banking: 5%

It's important to note that these estimates are based on available data and may be subject to change. Washington Trust Bancorp does not disclose specific revenue figures for each sales channel.

Customer Segment: Individuals

• Estimated Annual Sales: $2.2 billion

Customer Profile:

• Mass affluent individuals with investable assets between $250,000 and $5 million
• High net worth individuals with investable assets over $5 million
• Professionals, entrepreneurs, and business owners
• Seeking personalized financial advice, wealth management services, and private banking solutions

Key Products and Services:

• Personal checking and savings accounts
• Lending products (mortgages, home equity loans, personal loans)
• Wealth management services (investment advisory, financial planning, trust services)
• Private banking services (customized financial solutions, investment management)

Customer Segment: Businesses

• Estimated Annual Sales: $1.3 billion

Customer Profile:

• Small to medium-sized businesses (SMBs) with annual revenues up to $20 million
• Commercial real estate investors and developers
• Non-profit organizations
• Seeking commercial lending, treasury management services, and financial advisory

Key Products and Services:

• Commercial checking and savings accounts
• Lending products (commercial real estate loans, commercial mortgages, equipment financing)
• Treasury management services (cash management, online banking, merchant services)
• Financial advisory (business planning, mergers and acquisitions, succession planning)

Customer Segment: Municipalities

• Estimated Annual Sales: $200 million

Customer Profile:

• Municipalities, school districts, and other government entities
• Seeking funding solutions, cash management services, and financial advisory

Key Products and Services:

• Municipal banking (lending, investment management, cash management)
• Treasury management services (cash management, online banking, merchant services)
• Financial advisory (debt issuance, capital financing, grant procurement)

Total Estimated Annual Sales for Customer Segments:

• $3.7 billion

Washington Trust Bancorp's Value Proposition

Washington Trust Bancorp is a publicly traded bank holding company headquartered in Westerly, Rhode Island. The company provides a wide range of financial services to individuals, businesses, and municipalities throughout the Northeast.

Core Value Proposition

Washington Trust Bancorp's core value proposition is based on its commitment to providing exceptional customer service and personalized financial solutions. The company's goal is to build long-term relationships with its customers by understanding their unique needs and providing tailored financial products and services.

Key Features of Washington Trust Bancorp's Value Proposition

• Local Expertise and Decision-Making: Washington Trust Bancorp has a strong local presence in the markets it serves. This allows the company to understand the specific needs of its customers and make decisions quickly and efficiently.
• Personalized Service: Washington Trust Bancorp offers a high level of personalized service to its customers. The company's bankers take the time to get to know their customers and provide tailored financial solutions that meet their individual needs.
• Comprehensive Product and Service Offerings: Washington Trust Bancorp offers a wide range of financial products and services, including personal and business banking, wealth management, and insurance. This allows the company to meet the diverse needs of its customers.
• Commitment to Community Involvement: Washington Trust Bancorp is actively involved in the communities it serves. The company supports a variety of local organizations and initiatives, demonstrating its commitment to giving back to the community.

Benefits to Customers

• Customized financial solutions: Washington Trust Bancorp's personalized approach ensures that customers receive financial solutions that are tailored to their specific needs and goals.
• Exceptional customer service: The company's commitment to customer service provides customers with a positive and personalized experience.
• Convenience and accessibility: Washington Trust Bancorp's local presence and wide range of products and services make it convenient for customers to access the financial services they need.
• Stability and security: As a publicly traded company with a strong financial track record, Washington Trust Bancorp provides customers with peace of mind and confidence in their financial institution.

Target Customers

Washington Trust Bancorp's target customers include individuals, businesses, and municipalities in the Northeast. The company focuses on providing financial solutions to those seeking personalized service, tailored products, and a strong commitment to community involvement.

Washington Trust Bancorp, Inc. (WTB) is a bank holding company headquartered in Spokane, Washington. It is the parent company of Washington Trust Bank, a state-chartered commercial bank that operates branches in Washington, Oregon, and Idaho.

WTB's Risk Profile

WTB's risk profile is generally considered to be moderate. The company faces a number of risks, including:

• Credit risk: This is the risk that borrowers will default on their loans. WTB's credit risk is mitigated by its conservative lending practices and its diversified loan portfolio.
• Interest rate risk: This is the risk that changes in interest rates will adversely affect WTB's profitability. WTB's interest rate risk is mitigated by its hedging strategies and its focus on fixed-rate loans.
• Liquidity risk: This is the risk that WTB will not be able to meet its obligations as they come due. WTB's liquidity risk is mitigated by its strong capital position and its access to funding markets.
• Operational risk: This is the risk of losses due to errors, fraud, or other operational failures. WTB's operational risk is mitigated by its strong internal controls and its risk management framework.
• Compliance risk: This is the risk of violating laws or regulations. WTB's compliance risk is mitigated by its compliance program and its focus on ethical business practices.

Recent Developments

In recent years, WTB has taken a number of steps to improve its risk profile. These steps include:

• Increasing its capital levels: WTB's Tier 1 capital ratio has increased from 10.2% in 2015 to 11.3% in 2022.
• Diversifying its loan portfolio: WTB has reduced its concentration in commercial real estate lending and increased its focus on other loan types, such as consumer loans and small business loans.
• Strengthening its risk management framework: WTB has implemented a number of new risk management tools and processes, including a stress testing program and a data analytics platform.

Overall Risk Assessment

WTB's risk profile is generally considered to be moderate. The company faces a number of risks, but these risks are mitigated by its conservative lending practices, its strong capital position, and its robust risk management framework. WTB is well-positioned to continue to grow its business while maintaining a sound risk profile.