Washington Trust Bancorp : Environmental, Social and Governance Report

Environmental, Social, and Governance Report

2024

- Edward O. "Ned" Handy III

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

Message from Our Chairman and CEO

"We embrace our responsibility to maintain the highest standard of Environmental, Social and Governance practices for the benefit of our employees, customers, communities and shareholders."

To Our Valued

Shareholders

Since we published our first Environmental, Social, and Governance ("ESG") Report, we've discovered much more about the impact we have on each other, our customers, and our communities.

Our heightened awareness has inspired us to take more concrete actions, bringing our core values of quality, integrity, and community to life every day, and enabling us to make our bank and our communities even stronger.

From the beginning, our founders envisioned Washington Trust would be a catalyst for growth and opportunity throughout our footprint. That vision, along with our core values, are embedded in our cultural fabric and have enabled us to grow into a leading financial institution in our region. Now, in an ever-changing

world, we continue to adapt to new expectations and embrace

new opportunities.

In this report, you will learn about our progress in areas in which we believe we can have a material effect on the long-term sustainability of our business and positively impact all of our stakeholders. We've prioritized Diversity, Equity & Inclusion ("DE&I") efforts to sustain our company as an employer and bank of choice, and have incorporated strong, sustainable practices into our operations and our products. We are making strides.

We recognize our role as a pillar of the community and are focused on being a true partner to non-profit and community organizations as they address real challenges our neighbors face. The ever- increasing enthusiasm and engagement our employees bring to our multifaceted mission truly conveys the spirit of Washington Trust.

We pledge to continue these efforts and welcome input from all - our employees, our customers, our communities, and our shareholders - as we chart Washington Trust's path forward. We appreciate the support and trust you place in us.

Sincerely,

Edward O. "Ned" Handy III

Chairman & Chief Executive Officer

PAGE 2

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

Who We Are

Washington Trust Bancorp, Inc. (NASDAQ: WASH) is a bank holding company organized in 1984 under the laws of the State of Rhode Island. Washington Trust Bancorp owns all

As of 12/31/23	$7.2B	$5.6B	$5.3B	$6.6B
	Total Assets	Total Loans	Total Deposits	Wealth Management
				Assets Under Administration

the outstanding common stock of The Washington Trust Company, of Westerly, a Rhode Island- chartered commercial bank founded in 1800.

Washington Trust was founded in 1800 in Westerly, Rhode Island with a mission to provide banking services to people and businesses along both sides of the Pawcatuck River, which forms a natural border between southern Rhode Island and southeastern Connecticut. From the very beginning, our culture has focused on the core values of quality, integrity, and community, which enabled us to become a pillar of our communities and serve our customers with integrity and compassion for more than 223 years.

We offer holistic financial solutions, including personal banking, commercial banking, mortgage banking, and wealth management and trust services, through our branches and offices in Rhode Island, Massachusetts, and Connecticut.

Washington Trust represents the best in community banking. We believe that providing high quality, personalized service that prioritizes a human connection is an important differentiator for us - especially in this digital age.

Our experienced and dedicated team of trusted advisors seek to know our customers personally and understands their needs. We continue to listen to our customers and meet them through the channel of their choosing - whether in person, by phone, video conference, or digitally.

"We believe that community banks play a key role today, providing personal service with a compassionate, human connection that still matters to customers and communities." - Edward O. "Ned" Handy III

PAGE 3

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

PAGE 4

About Our Report	At Washington Trust, we are committed to serving as a trusted advisor and supporting the long-term financial well-being
	of our customers and our communities. To us, that commitment embraces fully the goals of ESG: taking advantage of
	opportunities in ways that make our business and our surroundings more sustainable. Through this updated report, we
	are sharing some of the many actions we have taken, and continue to take, to cement our role as an employer of choice,
	a business of choice, and a responsible corporate citizen.
	We focus our actions in the following areas:

Employee

Engagement

Our employees are our greatest asset and their direct interactions with our customers and communities are the foundation of our success. We endeavor to attract, motivate, and retain a talented, engaged, and diverse workforce focused on excellence and create an environment of trust where employees feel valued and empowered.

See page: 5

Diversity, Equity

& Inclusion

Commitment

We believe deeply that a diverse team and a culture of inclusion and mutual respect bring great value to our company, our shareholders, and our communities. We have a DE&I strategy that guides our efforts and a DE&I Council who assists with the implementation of that strategy to ensure Washington Trust continues to offer a welcoming environment and remains an employer of choice.

See page: 8

Corporate

Governance

At Washington Trust, integrity is central to everything we do. Our governance framework is designed to ensure that we operate with the highest ethical standards, in full compliance with the spirit and letter of all laws and regulations.

See page: 10

Data Security & Privacy

We protect the interests of our customers and shareholders by managing risk effectively. The security and privacy of customer assets and data are of utmost importance to

us. We have implemented a risk management framework to safeguard customer information and privacy and to help our customers protect themselves from fraud.

See page: 11

Community

Involvement &

Investment

As a community bank, we want to be viewed by our community as an indispensable asset, especially by those people who seek financial security and economic empowerment. This section shares some of the ways in which we enrich our communities through business practices such as affordable banking services and innovative assistance programs, as well as through philanthropic efforts and volunteer initiatives.

See page: 13

Environmental

Responsibility

Washington Trust believes being a good corporate citizen includes bringing sustainable thinking into our own business and modeling new approaches as a business leader. We mitigate our operational impact

on the environment and help preserve it for future generations through efforts within our business groups to make products and processes more sustainable.

See page: 17

PAGE 4

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

Employee Engagement

Our success and exceptional reputation are due to the dedication of our employees, who embody the spirit and values of our company through their daily interactions with customers, vendors, shareholders, the community, and fellow employees.

We listen to our employees, we hear their voices in our annual employee survey, and feel their engagement through their actions.

"The management team as a whole makes

• you feel empowered to go above and beyond in helping our clients."

"This company actually cares about
their employees and goes the extra
mile to make sure employees are
happy and get the recognition they	"
deserve. This company is invested
in their employees' lives and
truly cares about each and
every one of us."

Our Culture

At Washington Trust, people matter

• our employees, our customers, our shareholders, and our community. Our employees are the foundation of our success, and we strive to create an environment where people feel valued, empowered, and heard. Our talented team provides an exceptional customer experience by building strong relationships with our customers, listening to and understanding their needs and challenges, and providing expert advice and personalized solutions. Our employees serve as trusted advisors, brand ambassadors, and leaders within the community,

and they embody Washington Trust's core values of quality, integrity, and community every day.

As an organization, we work hard to foster an environment that is supportive, team-oriented, and full of spirit, passion, and a desire to do what's best for fellow employees, our customers, and our communities. We seek to provide opportunities for professional growth

• a place where individuals don't just find a job, they find a career. And we promote a healthy work-life balance to support well-being both inside and outside the workplace.

Every year, we host an Employee Appreciation Week, where we celebrate

employees across the organization. As a culmination of this week, we host an Employee Fest, where we celebrate our collective success and recognize several employees with peer-nominated awards. The Spirit of Washington Trust Award recognizes employees who, by their example or through their contributions, have clearly distinguished themselves as a role model for others. This award honors those exceptional employees who are committed to the highest standards of excellence in their jobs and truly bring the spirit and values of Washington Trust to life.

In 2023, we celebrated our 13th consecutive year of being named one of Rhode Island's "Best Places to Work" by Providence Business News. "This award is really a tribute to our employees. We truly value their commitment to providing caring, trusted advice, and personal service and solutions to our customers and community every day!" - Edward O. "Ned" Handy III

PAGE 5

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

Employee Engagement

"We continue to invest in the wellness programs, resources and initiatives that support of our employees' health and well-being, both inside and outside of the workplace,"

- Kristen DiSanto, Senior Executive Vice President and Chief Human Resources Officer.

Employee Wellness

Washington Trust is committed to creating and maintaining a workplace environment that promotes and supports each person's healthy lifestyle journey and choices. Our Wellness Program encourages employees to achieve and maintain a healthy lifestyle by providing education, rewards, and encouragement.

In addition to including traditional wellness education and resources, our programming also focuses on reducing stress, maintaining connections in a remote or hybrid work environment, and engaging employees in fun "Wellness Challenges."

In 2023, Washington Trust was named one of "Rhode Island's Healthiest Employers" by Providence Business News and was recognized with a Worksite Health Award in the top "Exemplary" category as a part of the Blue Cross Blue Shield of RI/Greater Providence Chamber of Commerce's "Worksite Wellness" awards program. This marks the sixteenth year Washington Trust has been awarded a Worksite Health Award.

Training and Development

At Washington Trust, we pride ourselves on serving as trusted advisors for our customers. To be successful, we must have a well- trained team with employees who listen. To achieve this goal, new hires

participate in a "learning journey" (a training program that ingrains new knowledge and builds on existing skills, to better align employees with their organization's business goals) that continues throughout

their employment.

We recognize that each position builds a foundation for the next, and we deliberately provide opportunities for professional growth and advancement. Across all our business lines, we identify high-potential employees, assess their skills gaps, and develop individualized training programs for them to progress in their careers at Washington Trust. We also bring new perspectives and capabilities to our team by

external hiring.

For us, it's all about assembling the best and brightest employees who are committed to providing

a superior customer experience with each interaction. Professional development options include internally and externally developed webinars and instructional programming, as well as financial support to attend conferences and industry events. We encourage employees to continue their education by providing a generous Educational Assistance Policy

to help them pursue job-related undergraduate and graduate degrees. We also encourage and support employees who pursue professional certifications and designations in their fields.

All employees participate in comprehensive training programs, customized to their job functions, to ensure our business practices meet and exceed all regulatory standards. Additionally, we strive to help our

PAGE 6

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

PAGE 7

Employee Engagement

We recognize that our employees are key to our success.

We believe employees who are valued, recognized, rewarded, and empowered will achieve personal and professional goals.

employees augment and expand both their technical and soft skills on topics such as banking, data systems and software, customer service excellence, people skills, management, and leadership.

We employ a robust succession planning process at multiple levels of the company. We begin by determining critical roles within the organization; defining core competencies

for individuals in those roles; identifying and assessing possible internal successors; and providing opportunities for individuals to develop and hone core competencies through training, mentoring, and professional experience. This process is essential to ensure leadership continuity in key positions, to retain and develop talent for the future, and to encourage professional development across

our operations.

Employer of Choice

Delivering a superior employee experience is a top priority. A healthy workplace culture creates an environment where morale and commitment are high and collaboration and productivity thrive. We focus on providing a satisfying work experience for employees in a number of ways:

• We recognize our employees' accomplishments and contributions and celebrate their achievements
• We encourage employees to take advantage of internal opportunities for promotion
• We provide flexible work policies that help employees create a work-life balance

• We encourage employees to enhance their skills and prepare for future growth by providing training and professional development opportunities and a robust Educational Assistance Policy
• We create cross-functional collaboration opportunities, where employees meet people from other departments, develop leadership skills, and learn more about all the company's operations
• We offer a flexible, wide-ranging benefit package to meet the diverse needs of our workforce

We are proud to be recognized as an employer of choice. For the thirteenth consecutive year, Washington Trust was named one

of the Best Places to Work in Rhode Island by Providence Business News.

Additionally, we were named by American Banker as one of the "Best Banks to Work For" for the fourth consecutive year.

These awards recognize our best-in-class workplace policies and practices. The awards also reflect results from an employee survey which measures our work environment, morale, benefits, and growth opportunities.

PAGE 7

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

Diversity, Equity &

Inclusion Commitment

Washington Trust is committed to fostering a diverse and inclusive work environment and embracing cultural awareness to ensure all perspectives and experiences are welcome.

As an organization, we celebrate our differences and recognize the value that diversity brings to all that we do. Several years ago, our CEO Ned Handy, joined more than 2,300 CEOs throughout the country in signing the CEO Action for Diversity and Inclusion™ pledge. This is a promise to cultivate a trusting environment where employees feel welcomed, comfortable, and empowered to share their ideas and have open conversations. Aligned with this commitment, we embarked on

a journey to assess our DE&I efforts, identified strengths and opportunities, and charted a path forward.

We have a formalized strategy that guides our DE&I efforts, focusing on four pillars

• culture and employee experience; recruitment, development, and retention; leadership and workforce engagement; and impactful community relationships.

To assist us in implementing our DE&I strategy, we have established the Washington Trust DE&I Council, a cross-functional group of colleagues representing different perspectives, backgrounds, and experiences. These dedicated colleagues assist us in implementing our DE&I strategy and are working on a number of important initiatives to engage the workforce and leadership in DE&I matters. We are inspired by the Council's passion and its contributions in ensuring Washington Trust continues to offer a welcoming environment and remains an employer of choice.

Our DE&I Council is comprised of employees from throughout

the company, who represent different perspectives, backgrounds, and experiences. They are helping leadership think through every

element of DE&I, inside and outside the company.

In the past 12 months, the DE&I Council has introduced employee resource groups and hosted a Women of Washington Trust panel discussion, a 21 Day Equity Challenge, and various events designed to promote understanding and inclusivity.

PAGE 8

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

PAGE 9

Company Demographics

As of 4/30/24

Workforce

Board and Leadership

Gender Representation

Race/Ethnicity

0.6%

Board Diversity

Leadership Diversity

2.8%

37.5%

3.2%

2.6%

4.8%

1.4%

36.4%

47.2%

2.8%

62.5%

1.1%

12.6% Minority

86.3%

63.6% Women

& Minority

36.4%

27.2%

52.8% Women

& Minority

47.2%

Female

Male

American Indian

Asian

Black

Hispanic

Two or More

Declined to Answer

White

Non-minority Male Non-minority Female Minority Male

Non-minority Male		Non-minority Female
		Minority Male			Minority Female

As a community bank, we understand our company and employees must reflect the people and communities we serve, so we can better understand and respond to the needs of our growing customer base. We also recognize that an inclusive environment fosters increased collaboration, problem-solving, innovation and creativity, ultimately driving positive results.

PAGE 9

WASHINGTON TRUST ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT

Corporate Governance

Since our founding, Washington Trust has been guided by strong core values and operated in a manner which exemplifies good governance, ethics, and an overriding commitment to 'do the right thing'. We have an uncompromising commitment to upholding our core values of quality, integrity, and community, and have based the foundation of our governance structure on these principles.

Good governance is a top priority at Washington Trust. It is imperative to build confidence and trust among our employees, customers, shareholders, and the community at large. Our governance policies and practices ensure that we remain transparent while maintaining the highest levels of quality and integrity in regards to data security, customer privacy, and risk management.

Our Board has adopted Corporate Governance Guidelines that are intended to assist and guide the Board in the exercise of its responsibilities and provide a framework for our governance structure. The Board reviews and updates these guidelines at least annually.

The Board believes that our Chief Executive Officer is best positioned to serve as Chairman because he is the director most familiar with our business and industry, and most capable of effectively identifying and executing strategy. Our independent directors bring experience, oversight, and expertise from outside of the Corporation, while the Chief Executive Officer brings Corporation-specific

experience and expertise. The Board recognizes its responsibility to hold management accountable for the execution of strategy once it is developed. We also have an independent Lead Director who presides over executive sessions, consults with the Chairman and Chief Executive Officer on Board and committee agendas, and acts as a liaison between management and non-management directors. The Board believes the combined role of Chairman and Chief Executive Officer, together with an independent Lead Director is in the best interest of shareholders because it fosters effective decision- making and strategy development while providing for independent oversight

of management.

We have adopted a Code of Ethics and Standards of Personal Conduct ("Code of Ethics"), which establishes the standards of ethical business behavior and personal conduct for all directors, executive officers, and employees. The purpose of the policy is to safeguard our tradition of strong moral, ethical, and social standards of conduct. All directors, executive officers, and employees are

required to annually acknowledge their commitment to comply with the letter and spirit of the Code of Ethics. If any suspected violations of our ethical standards occur, Washington Trust has procedures in place so individuals can report them anonymously.

We encourage stakeholders to review our governance documents including the Corporate Governance Guidelines and the Code of Ethics by visiting ir.washtrust.com/corporate-governance.

Risk Management

We take a comprehensive approach to risk management at Washington Trust, leveraging our established framework and controls to identify, measure, manage, and control risk appropriately. The foundation of our program is Enterprise Risk Management ("ERM"), which makes use of its associated multi-tier governance model that flows issues up from frontline teams through management to the Board.

Our risk management governance structure and how we approach

managing risk is detailed in our Enterprise Risk Management Policy and related policies. A key concept in our risk management is the use of "three lines of defense." Frontline business units and staff function as the critical first line. Oversight and advisory entities such as Information Assurance and ERM are the second line. The third line involves Audit (internal and external) and regulatory agencies.

Oversight and Audit

Management is responsible for the financial reporting process and prepares our consolidated financial statements. The Audit Committee of the Board reviews our financial statements and compliance program, as well as our accounting processes. The Audit Committee also oversees an independent registered public accounting firm.

PAGE 10