Washington Trust Reports Strong Fourth Quarter and Full-Year 2025 Results

WESTERLY, R.I., Jan. 28, 2026 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH) ("Washington Trust" or the "Corporation"), today reported fourth quarter 2025 net income of $16.0 million, or $0.83 per diluted share, up from $10.8 million, or $0.56 per diluted share, for the preceding quarter. Full-year 2025 net income totaled $52.2 million, or $2.71 per diluted share, compared to a net loss of $28.1 million, or a $1.63 loss per diluted share, for 2024. Excluding the impact of previously disclosed infrequent transactions from both periods, full-year 2025 adjusted net income (non-GAAP) totaled $51.8 million, or $2.69 per diluted share, compared to adjusted net income (non-GAAP) of $40.9 million, or $2.37 per diluted share, for 2024.

"Our fourth quarter results reflect continued earnings momentum and improving profitability, with year-over-year performance supported by margin expansion, strong in-market deposit growth, and increases in wealth management and mortgage banking revenues," said Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III. "As we enter 2026, the addition of resources in our commercial and wealth management business lines, including the recently announced dedicated institutional banking team, positions us well for sustainable growth."

FOURTH QUARTER HIGHLIGHTS (Q4 2025 vs. Q3 2025, unless otherwise noted):

RESULTS OF OPERATIONS (Q4 2025 vs. Q3 2025, unless otherwise noted):

Net Interest Income

Net interest income was $40.7 million, up by $1.9 million, or 5%, and the net interest margin was 2.56%, up by 16 basis points. This was supported by lower funding costs and included an increase in loan prepayment income.

Noninterest Income

Noninterest income was $18.5 million, up by $867 thousand, or 5%.

Noninterest Expense

Noninterest expense totaled $38.0 million, up by $2.3 million, or 6%.

Income Tax

Income tax expense totaled $4.7 million, up by $1.6 million. The effective tax rate was 22.7%, compared to 22.2%. The Corporation expects its full-year 2026 effective tax rate to be approximately 22.0%.

FINANCIAL CONDITION (Dec 31, 2025 vs. Sep 30, 2025, unless otherwise noted):

Investment Securities

The securities portfolio totaled $940 million, down by $22 million, or 2%, and remained at 14% of total assets.

Loans

Total loans amounted to $5.1 billion, up by $12 million.

Deposits and Borrowings

Total deposits amounted to $5.3 billion, up by $47 million, or 1%. There were no wholesale brokered deposits at the end of either period. FHLB advances totaled $626 million, down by $165 million, or 21%.

Contingent liquidity amounted to $2.0 billion at the end of 2025 and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.

Capital and Dividends

Total shareholders' equity was $543.6 million, up by $10.6 million, or 2%, reflecting net income and improvement in accumulated other comprehensive loss, which were offset, in part, by quarterly dividend declarations and a net increase in treasury stock.

ASSET QUALITY (Dec 31, 2025 vs. Sep 30, 2025, unless otherwise noted):

Credit quality metrics improved in the fourth quarter, with reductions in nonaccrual loans and net charge-offs.

Nonaccrual loans were $12.9 million, or 0.25% of total loans, down from $14.0 million, or 0.27%, and consisted entirely of residential and consumer loans.

Past due loans were $11.4 million, or 0.22% of total loans, up from $8.1 million, or 0.16%, and included $655 thousand of commercial loans and $10.7 million of residential and consumer loans.

The Corporation recorded $160 thousand of net recoveries in the fourth quarter, compared to net charge-offs of $11.4 million in the preceding quarter. The provision for credit losses normalized and totaled $600 thousand in the fourth quarter, compared to $6.8 million in the third quarter.

The allowance for credit losses ("ACL") on loans amounted to $37.2 million, or 0.73% of total loans, compared to $36.6 million, or 0.71%.

Conference Call

Washington Trust will host a conference call to discuss its fourth quarter results, business highlights, and outlook on Thursday, January 29, 2026 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 58400. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay Access Code 478781. The audio replay will be available through February 12, 2026. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, https://ir.washtrust.com, and will be available through March 31, 2026.

Background

Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut, and Massachusetts. The Corporation's common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation's website at https://ir.washtrust.com.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements." We may also make forward-looking statements in other documents we file with the U.S. Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors, or employees. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control. These risks, uncertainties, and other factors may cause our actual results, performance, or achievements to be materially different from the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following:

In addition, the factors described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. The forward-looking statements in this report were based on information, plans, and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Supplemental Information - Explanation of Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted net income, adjusted net income available to common shareholders, adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average equity, and adjusted efficiency ratio, as well as measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; Dollars in thousands)

Dec 31, 2025 vs.

Sep 30, 2025

Dec 31, 2025 vs.

Dec 31, 2024

Dec 31,

2025

Sep 30,

2025

Dec 31,

2024

Assets:

Cash and due from banks

$29,481

$35,604

$21,534

(6,123)

(17.2 %)

$7,947

36.9 %

Interest-earning deposits with correspondent banks

61,375

143,886

88,368

(82,511)

(57.3)

(26,993)

(30.5)

Short-term investments

12,878

12,841

3,987

0.3

8,891

223.0

Mortgage loans held for sale, at fair value

35,833

31,318

21,708

4,515

14.4

14,125

65.1

Mortgage loans held for sale, at lower of cost or market

—

281,706

—

(281,706)

(100.0)

Premises and equipment held for sale, lower of cost or

market

—

4,788

—

(4,788)

(100.0)

Available for sale debt securities, at fair value

940,342

962,466

916,305

(22,124)

(2.3)

24,037

2.6

Federal Home Loan Bank stock, at cost

29,473

36,331

49,817

(6,858)

(18.9)

(20,344)

(40.8)

Loans:

Total loans

5,134,388

5,122,582

5,137,838

11,806

0.2

(3,450)

(0.1)

Less: allowance for credit losses on loans

37,236

36,576

41,960

660

1.8

(4,724)

(11.3)

Net loans

5,097,152

5,086,006

5,095,878

11,146

0.2

1,274

—

Premises and equipment, net

25,402

25,065

26,873

337

1.3

(1,471)

(5.5)

Operating lease right-of-use assets

35,904

35,968

26,943

(64)

(0.2)

8,961

33.3

Investment in bank-owned life insurance

115,126

114,240

106,777

886

0.8

8,349

7.8

Goodwill

63,909

—

Identifiable intangible assets, net

4,303

4,458

2,885

(155)

(3.5)

1,418

49.2

Other assets

170,516

165,829

219,169

4,687

2.8

(48,653)

(22.2)

Total assets

$6,621,694

$6,717,921

$6,930,647

($96,227)

(1.4 %)

($308,953)

(4.5 %)

Liabilities:

Deposits:

Noninterest-bearing deposits

$595,092

$671,309

$661,776

($76,217)

(11.4 %)

($66,684)

(10.1 %)

Interest-bearing deposits

4,674,898

4,551,527

4,454,024

123,371

2.7

220,874

5.0

Total deposits

5,269,990

5,222,836

5,115,800

47,154

0.9

154,190

3.0

Federal Home Loan Bank advances

626,000

791,000

1,125,000

(165,000)

(20.9)

(499,000)

(44.4)

Junior subordinated debentures

22,681

—

Operating lease liabilities

38,726

38,741

29,578

(15)

—

9,148

30.9

Other liabilities

120,713

109,642

137,860

11,071

10.1

(17,147)

(12.4)

Total liabilities

6,078,110

6,184,900

6,430,919

(106,790)

(1.7)

(352,809)

(5.5)

Shareholders' Equity:

Common stock

1,223

—

Paid-in capital

198,323

198,058

196,947

265

0.1

1,376

0.7

Retained earnings

442,741

437,545

434,014

5,196

1.2

8,727

2.0

Accumulated other comprehensive loss

(79,309)

(84,828)

(119,171)

5,519

(6.5)

39,862

33.4

Treasury stock, at cost

(19,394)

(18,977)

(13,285)

(417)

2.2

(6,109)

(46.0)

Total shareholders' equity

543,584

533,021

499,728

10,563

2.0

43,856

8.8

Total liabilities and shareholders' equity

$6,621,694

$6,717,921

$6,930,647

($96,227)

(1.4 %)

($308,953)

(4.5 %)

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; Dollars and shares in thousands, except per share amounts)

Q4 2025 vs. Q3 2025

Q4 2025 vs. Q4 2024

Q4 2025

Q3 2025

Q4 2024

Interest income:

Interest and fees on loans

$67,040

$68,785

$71,432

($1,745)

(2.5 %)

($4,392)

(6.1 %)

Interest on mortgage loans held for sale

606

542

762

11.8

(156)

(20.5)

Taxable interest on debt securities

9,100

9,372

7,015

(272)

(2.9)

2,085

29.7

Nontaxable interest on debt securities

14.3

—

Dividends on Federal Home Loan Bank stock

792

764

1,312

3.7

(520)

(39.6)

Other interest income

1,291

1,475

1,310

(184)

(12.5)

(19)

(1.5)

Total interest and dividend income

78,837

80,945

81,839

(2,108)

(2.6)

(3,002)

(3.7)

Interest expense:

Deposits

30,060

31,223

34,135

(1,163)

(3.7)

(4,075)

(11.9)

Federal Home Loan Bank advances

7,696

10,542

14,388

(2,846)

(27.0)

(6,692)

(46.5)

Junior subordinated debentures

333

347

380

(14)

(4.0)

(47)

(12.4)

Total interest expense

38,089

42,112

48,903

(4,023)

(9.6)

(10,814)

(22.1)

Net interest income

40,748

38,833

32,936

1,915

4.9

7,812

23.7

Provision for credit losses

600

6,800

1,000

(6,200)

(91.2)

(400)

(40.0)

Net interest income after provision for credit losses

40,148

32,033

31,936

8,115

25.3

8,212

25.7

Noninterest income (loss):

Wealth management revenues

10,852

10,373

10,049

479

4.6

803

8.0

Mortgage banking revenues

3,250

3,501

2,848

(251)

(7.2)

402

14.1

Card interchange fees

1,217

1,163

1,255

4.6

(38)

(3.0)

Service charges on deposit accounts

843

841

794

0.2

6.2

Loan related derivative income

1,081

271

810

298.9

1,073

13,412.5

Income from bank-owned life insurance

886

868

779

2.1

107

13.7

Realized losses on securities, net

—

(31,047)

—

31,047

100.0

Losses on sale of portfolio loans, net

—

(62,888)

—

62,888

100.0

Other income

374

619

310

(245)

(39.6)

20.6

Total noninterest income (loss)

18,503

17,636

(77,892)

867

4.9

96,395

123.8

Noninterest expense:

Salaries and employee benefits

23,647

22,674

21,875

973

4.3

1,772

8.1

Outsourced services

4,067

4,120

4,197

(53)

(1.3)

(130)

(3.1)

Net occupancy

2,642

2,691

2,428

(49)

(1.8)

214

8.8

Equipment

852

917

936

(65)

(7.1)

(84)

(9.0)

Legal, audit, and professional fees

667

719

845

(52)

(7.2)

(178)

(21.1)

FDIC deposit insurance costs

1,028

1,055

1,266

(27)

(2.6)

(238)

(18.8)

Advertising and promotion

1,029

763

560

266

34.9

469

83.8

Amortization of intangibles

155

200

204

(45)

(22.5)

(49)

(24.0)

Other expenses

3,896

2,587

1,981

1,309

50.6

1,915

96.7

Total noninterest expense

37,983

35,726

34,292

2,257

6.3

3,691

10.8

Income (loss) before income taxes

20,668

13,943

(80,248)

6,725

48.2

100,916

125.8

Income tax expense (benefit)

4,694

3,097

(19,457)

1,597

51.6

24,151

124.1

Net income (loss)

$15,974

$10,846

($60,791)

$5,128

47.3 %

$76,765

126.3 %

Net income (loss) available to common shareholders

$15,974

$10,846

($60,776)

Weighted avg common shares outstanding - basic

19,034

19,128

17,452

Weighted avg common shares outstanding - diluted

19,159

19,243

17,452

Per share information:

Basic earnings per common share

$0.84

$0.57

($3.48)

$0.27

47.4 %

$4.32

(124.1 %)

Diluted earnings per common share

$0.83

$0.56

($3.48)

$0.27

48.2 %

$4.31

(123.9 %)

Cash dividends declared

$0.56

$—

— %

$—

— %

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; Dollars and shares in thousands, except per share amounts)

Change

For the Year Ended Dec 31,

2025

2024

Interest income:

Interest and fees on loans

$269,826

$299,297

($29,471)

(9.8 %)

Interest on mortgage loans held for sale

2,548

1,775

773

43.5

Taxable interest on debt securities

36,529

27,850

8,679

31.2

Nontaxable interest on debt securities

275.0

Dividends on Federal Home Loan Bank stock

3,370

4,771

(1,401)

(29.4)

Other interest income

5,788

6,977

(1,189)

(17.0)

Total interest and dividend income

318,091

340,678

(22,587)

(6.6)

Interest expense:

Deposits

123,895

146,098

(22,203)

(15.2)

Federal Home Loan Bank advances

39,635

64,539

(24,904)

(38.6)

Junior subordinated debentures

1,373

1,593

(220)

(13.8)

Total interest expense

164,903

212,230

(47,327)

(22.3)

Net interest income

153,188

128,448

24,740

19.3

Provision for credit losses

9,200

2,400

6,800

283.3

Net interest income after provision for credit losses

143,988

126,048

17,940

14.2

Noninterest income (loss):

Wealth management revenues

41,236

39,054

2,182

5.6

Mortgage banking revenues

12,089

10,981

1,108

10.1

Card interchange fees

5,136

4,996

140

2.8

Service charges on deposit accounts

3,236

3,032

204

6.7

Loan related derivative income

2,129

467

1,662

355.9

Income from bank-owned life insurance

3,349

3,041

308

10.1

Realized losses on securities, net

—

(31,047)

31,047

100.0

Losses on sale of portfolio loans, net

—

(62,888)

62,888

100.0

Gain on sale of bank-owned properties, net

6,994

988

6,006

607.9

Other income

1,691

3,579

(1,888)

(52.8)

Total noninterest income (loss)

75,860

(27,797)

103,657

372.9

Noninterest expense:

Salaries and employee benefits

91,768

86,260

5,508

6.4

Outsourced services

16,937

16,258

679

4.2

Net occupancy

10,736

9,785

951

9.7

Equipment

3,590

3,838

(248)

(6.5)

Legal, audit, and professional fees

2,862

3,128

(266)

(8.5)

FDIC deposit insurance costs

4,580

5,513

(933)

(16.9)

Advertising and promotion

2,919

2,626

293

11.2

Amortization of intangibles

762

826

(64)

(7.7)

Pension plan settlement charge

6,436

—

6,436

100.0

Other expenses

11,845

8,835

3,010

34.1

Total noninterest expense

152,435

137,069

15,366

11.2

Income (loss) before income taxes

67,413

(38,818)

106,231

273.7

Income tax expense (benefit)

15,169

(10,759)

25,928

241.0

Net income (loss)

$52,244

($28,059)

$80,303

286.2 %

Net income (loss) available to common shareholders

$52,244

($28,038)

Weighted avg common shares outstanding - basic

19,180

17,149

Weighted avg common shares outstanding - diluted

19,281

17,149

Per share information:

Basic earnings per common share

$2.72

($1.63)

$4.35

(266.9 %)

Diluted earnings per common share

$2.71

($1.63)

$4.34

(266.3 %)

Cash dividends declared

$2.24

$—

— %

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars and shares in thousands, except per share amounts)

Dec 31,

2025

Sep 30,

2025

Dec 31,

2024

Dec 31, 2025 vs.

Sep 30, 2025

Dec 31, 2025 vs.

Dec 31, 2024

Share and Equity Related Data:

Book value per share

$28.56

$27.98

$25.93

$0.58

2.1 %

$2.63

10.1 %

Tangible book value per share (non-GAAP) (1)

$24.97

$24.39

$22.46

$0.58

2.4 %

$2.51

11.2 %

Market value per share

$29.55

$28.90

$31.35

$0.65

2.2 %

($1.80)

(5.7 %)

Shares issued at end of period

19,562

— shs

— %

— shs

— %

Shares outstanding at end of period

19,035

19,050

19,274

(15) shs

(0.1 %)

(239) shs

(1.2 %)

Capital Ratios (2):

Tier 1 risk-based capital

12.14 %

12.11 %

11.64 %

3 bps

50 bps

Total risk-based capital

12.95 %

12.90 %

12.47 %

5 bps

48 bps

Tier 1 leverage ratio

8.65 %

8.43 %

8.13 %

22 bps

52 bps

Common equity tier 1

11.68 %

11.64 %

11.20 %

4 bps

48 bps

Balance Sheet Ratios:

Equity to assets

8.21 %

7.93 %

7.21 %

28 bps

100 bps

Tangible equity to tangible assets (non-GAAP) (1)

7.25 %

6.99 %

6.31 %

26 bps

94 bps

Loans to deposits (3)

97.4 %

98.0 %

105.5 %

(60) bps

(810) bps

Q4 2025

For the Year Ended

YTD 2025

Q4 2025

Q3 2025

Q4 2024

vs.

Q3 2025

(bps)

vs.

Q4 2024

(bps)

Dec 31,

2025

Dec 31,

2024

vs.

2024

(bps)

Performance Ratios (4):

Net interest margin (5)

2.56 %

2.40 %

1.95 %

2.40 %

1.87 %

Return on average assets (6)

0.95 %

0.64 %

(3.45 %)

440

0.78 %

(0.39 %)

117

Adjusted return on average assets (non-GAAP) (1)

0.95 %

0.64 %

0.59 %

0.77 %

0.57 %

Return on average tangible assets (non-GAAP) (1)

0.96 %

0.65 %

0.60 %

0.78 %

0.57 %

Return on average equity (7)

11.70 %

8.14 %

(48.25 %)

356

5,995

9.92 %

(5.84 %)

1,576

Adjusted return on average equity (non-GAAP) (1)

11.70 %

8.14 %

8.29 %

356

341

9.84 %

8.52 %

132

Return on average tangible equity (non-GAAP) (1)

13.39 %

9.34 %

9.57 %

405

382

11.28 %

9.91 %

137

Efficiency ratio (8)

64.1 %

63.3 %

(76.3 %)

14,040

66.6 %

136.2 %

(6,960)

Adjusted efficiency ratio (non-GAAP) (1)

64.1 %

63.3 %

70.0 %

(590)

65.7 %

71.6 %

(590)

(1)

See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.

(2)

Estimated for Dec 31, 2025 and actuals for prior periods.

(3)

Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits.

(4)

Annualized based on the actual number of days in the period.

(5)

Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets.

(6)

Net income divided by average assets.

(7)

Net income available for common shareholders divided by average equity.

(8)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income).

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars in thousands)

Q4 2025 vs. Q3 2025

Q4 2025 vs. Q4 2024

Q4 2025

Q3 2025

Q4 2024

Wealth Management Results

Wealth Management Revenues:

Asset-based revenues

$10,749

$10,307

$9,910

$442

4.3 %

$839

8.5 %

Transaction-based revenues

103

139

56.1

(36)

(25.9)

Total wealth management revenues

$10,852

$10,373

$10,049

$479

4.6 %

$803

8.0 %

Assets Under Administration (AUA):

Balance at end of period (1)

$7,777,250

$7,682,440

$7,077,802

$94,810

1.2 %

$699,448

9.9 %

Percentage of AUA that are managed assets

91 %

Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net (2)

$3,424

$2,450

$2,493

$974

39.8 %

$931

37.3 %

Changes in fair value, net (3)

(610)

530

(317)

(1,140)

(215.1)

(293)

92.4

Loan servicing fee income, net (4)

436

521

672

(85)

(16.3)

(236)

(35.1)

Total mortgage banking revenues

$3,250

$3,501

$2,848

($251)

(7.2 %)

$402

14.1 %

Residential Mortgage Loan Originations:

Originations for retention in portfolio (5)

$46,912

$50,852

$15,155

($3,940)

(7.7 %)

$31,757

209.5 %

Originations for sale to secondary market (6)

162,410

122,300

114,137

40,110

32.8

48,273

42.3

Total mortgage loan originations

$209,322

$173,152

$129,292

$36,170

20.9 %

$80,030

61.9 %

Percentage of originations for sale to total

mortgage loan originations

78 %

71 %

88 %

Residential Mortgage Loans Sold:

Sold with servicing rights retained

$7,461

$9,774

$62,410

($2,313)

(23.7 %)

($54,949)

(88.0 %)

Sold with servicing rights released (6)

150,507

116,713

50,697

33,794

29.0

99,810

196.9

Total mortgage loans sold

$157,968

$126,487

$113,107

$31,481

24.9 %

$44,861

39.7 %

(1)

Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025.

(2)

Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.

(3)

Represents fair value changes on mortgage loans held for sale and forward loan commitments.

(4)

Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.

(5)

Includes the full commitment amount of homeowner construction loans.

(6)

Includes brokered loans (loans originated for others).

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars in thousands)

Change

For the Year Ended Dec 31,

2025

2024

Wealth Management Results

Wealth Management Revenues:

Asset-based revenues

$40,570

$38,008

$2,562

6.7 %

Transaction-based revenues

666

1,046

(380)

(36.3)

Total wealth management revenues

$41,236

$39,054

$2,182

5.6 %

Assets Under Administration (AUA):

Balance at end of period (1)

$7,777,250

$7,077,802

$699,448

9.9 %

Percentage of AUA that are managed assets

91 %

Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net (2)

$9,909

$8,776

$1,133

12.9 %

Changes in fair value, net (3)

(1)

7,300.0

Loan servicing fee income, net (4)

2,108

2,206

(98)

(4.4)

Total mortgage banking revenues

$12,089

$10,981

$1,108

10.1 %

Residential Mortgage Loan Originations:

Originations for retention in portfolio (5)

$176,757

$92,466

$84,291

91.2 %

Originations for sale to secondary market (6)

490,441

418,080

72,361

17.3

Total mortgage loan originations

$667,198

$510,546

$156,652

30.7 %

Percentage of originations for sale to total mortgage loan originations

74 %

82 %

Residential Mortgage Loans Sold:

Sold with servicing rights retained

$41,816

$128,918

($87,102)

(67.6 %)

Sold with servicing rights released (6)

434,913

287,223

147,690

51.4

Total mortgage loans sold

$476,729

$416,141

$60,588

14.6 %

(1)

Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025.

(2)

Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.

(3)

Represents fair value changes on mortgage loans held for sale and forward loan commitments.

(4)

Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.

(5)

Includes the full commitment amount of homeowner construction loans.

(6)

Includes brokered loans (loans originated for others).

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)

Dec 31, 2025 vs.

Sep 30, 2025

Dec 31, 2025 vs.

Dec 31, 2024

Dec 31,

2025

Sep 30,

2025

Dec 31,

2024

Loans:

Commercial real estate (1)

$2,183,985

$2,156,750

$2,154,504

$27,235

1.3 %

$29,481

1.4 %

Commercial & industrial

564,082

568,317

542,474

(4,235)

(0.7)

21,608

4.0

Total commercial

2,748,067

2,725,067

2,696,978

23,000

0.8

51,089

1.9

Residential real estate (2)

2,050,399

2,073,740

2,126,171

(23,341)

(1.1)

(75,772)

(3.6)

Home equity

318,862

307,371

297,119

11,491

3.7

21,743

7.3

Other

17,060

16,404

17,570

656

4.0

(510)

(2.9)

Total consumer

335,922

323,775

314,689

12,147

3.8

21,233

6.7

Total loans

$5,134,388

$5,122,582

$5,137,838

$11,806

0.2 %

($3,450)

(0.1 %)

(1)

Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.

(2)

Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties.

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)

Dec 31, 2025

Dec 31, 2024

Balance Change

Balance

% of Total

Balance

% of Total

Commercial Real Estate Portfolio Segmentation:

Multi-family

$667,388

31 %

$567,243

26 %

$100,145

17.7 %

Retail

436,961

433,146

3,815

0.9

Industrial and warehouse

380,403

358,425

21,978

6.1

Office

237,706

289,853

(52,147)

(18.0)

Hospitality

230,549

213,585

16,964

7.9

Healthcare Facility

156,871

205,858

(48,987)

(23.8)

Mixed-use

26,440

29,023

(2,583)

(8.9)

Other

47,667

57,371

(9,704)

(16.9)

Total commercial real estate loans

$2,183,985

100 %

$2,154,504

100 %

$29,481

1.4 %

Commercial & Industrial Portfolio Segmentation:

Healthcare and social assistance

$150,061

27 %

$126,547

23 %

$23,514

18.6 %

Real estate rental and leasing

57,113

63,992

(6,879)

(10.7)

Transportation and warehousing

55,315

55,784

(469)

(0.8)

Educational services

54,245

47,092

7,153

15.2

Retail trade

48,289

41,132

7,157

17.4

Accommodation and food services

26,431

12,368

14,063

113.7

Manufacturing

23,714

32,140

(8,426)

(26.2)

Finance and insurance

22,727

26,557

(3,830)

(14.4)

Arts, entertainment, and recreation

22,043

19,861

2,182

11.0

Information

21,843

22,265

(422)

(1.9)

Professional, scientific, and technical services

12,490

10,845

1,645

15.2

Public administration

1,448

—

2,186

—

(738)

(33.8)

Other

68,363

81,705

(13,342)

(16.3)

Total commercial & industrial loans

$564,082

100 %

$542,474

100 %

$21,608

4.0 %

Weighted Average

Asset Quality

Balance

(2) (3)

Average

Loan

Size (4)

Loan to

Value

Debt

Service

Coverage

Pass

Special

Mention

Classified

Nonaccrual

(included in

Classified)

Non-Owner Occupied Commercial Real

Estate Office (inclusive of Construction):

Class A

$85,190

$10,716

57 %

1.45x

$56,894

$22,139

$6,157

$—

Class B

71,232

3,562

53 %

1.58x

71,232

—

Class C

10,500

1,500

57 %

1.30x

8,343

2,157

—

Medical Office

37,368

6,228

58 %

1.49x

37,368

—

Lab Space

33,416

18,226

84 %

—x

—

33,416

—

Total office at Dec 31, 2025 (1)

$237,706

$5,611

60 %

1.27x

$173,837

$57,712

$6,157

$—

Total office at Sep 30, 2025

$242,165

$5,487

60 %

1.36x

$179,227

$30,996

$31,942

$—

Dec 31, 2025 vs. Sep 30, 2025

($4,459)

$124

— %

(0.09x)

($5,390)

$26,716

($25,785)

$—

(1)

Approximately 66% of the total commercial real estate office balance of $238 million is secured by income producing properties located in suburban areas. Additionally, approximately 51% of the total commercial real estate office balance is scheduled to mature before Dec 31, 2027.

(2)

Balance of commercial real estate office consists of 43 loans as of Dec 31, 2025.

(3)

Does not include $3.6 million of unfunded commitments as of Dec 31, 2025.

(4)

Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans.

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY

(Unaudited; Dollars in thousands)

Dec 31, 2025 vs.

Sep 30, 2025

Dec 31, 2025 vs.

Dec 31, 2024

Dec 31,

2025

Sep 30,

2025

Dec 31,

2024

Deposits:

Noninterest-bearing demand deposits

$595,092

$671,309

$661,776

($76,217)

(11.4 %)

($66,684)

(10.1 %)

Interest-bearing demand deposits (in-market)

756,794

703,848

592,904

52,946

7.5

163,890

27.6

NOW accounts

715,114

684,689

692,812

30,425

4.4

22,302

3.2

Money market accounts

1,185,420

1,195,463

1,154,745

(10,043)

(0.8)

30,675

2.7

Savings accounts

796,887

733,529

523,915

63,358

8.6

272,972

52.1

Time deposits (in-market)

1,220,683

1,233,998

1,192,110

(13,315)

(1.1)

28,573

2.4

In-market deposits (1)

5,269,990

5,222,836

4,818,262

47,154

0.9

451,728

9.4

Wholesale brokered time deposits

—

297,538

—

(297,538)

(100.0)

Total deposits

$5,269,990

$5,222,836

$5,115,800

$47,154

0.9 %

$154,190

3.0 %

(1)

As of Dec 31, 2025, in-market deposits were approximately 60% retail and 40% commercial and the average size was approximately $39 thousand.

Dec 31,

2025

Dec 31,

2024

Dec 31, 2025 vs.

Dec 31, 2024

Contingent Liquidity:

Federal Home Loan Bank of Boston

$1,356,005

$752,951

$603,054

80.1 %

Federal Reserve Bank of Boston

104,379

70,286

34,093

48.5

Available cash liquidity (1)

17,460

36,647

(19,187)

(52.4)

Unencumbered securities

539,830

597,771

(57,941)

(9.7)

Total

$2,017,674

$1,457,655

$560,019

38.4 %

(1)

Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs.

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

Dec 31, 2025 vs.

Dec 31,

2025

Sep 30,

2025

Dec 31,

2024

Sep 30,

2025

(bps)

Dec 31,

2024

(bps)

Asset Quality Ratios:

Nonperforming assets to total assets

0.20 %

0.21 %

0.34 %

(1)

(14)

Nonaccrual loans to total loans

0.25 %

0.27 %

0.45 %

(2)

(20)

Total past due loans to total loans

0.22 %

0.16 %

0.23 %

(1)

ACL on loans to nonaccrual loans

288.14 %

260.96 %

180.03 %

2,718

10,811

ACL on loans to total loans

0.73 %

0.71 %

0.82 %

(9)

Dec 31, 2025 vs.

Sep 30, 2025

Dec 31, 2025 vs.

Dec 31, 2024

Dec 31,

2025

Sep 30,

2025

Dec 31,

2024

Nonperforming Assets:

Commercial real estate

$—

$10,053

$—

— %

($10,053)

(100.0 %)

Commercial & industrial

—

1,010

515

(1,010)

(100.0)

(515)

(100.0)

Total commercial

—

1,010

10,568

(1,010)

(100.0)

(10,568)

(100.0)

Residential real estate

11,099

11,129

10,767

(30)

(0.3)

332

3.1

Home equity

1,824

1,877

1,972

(53)

(2.8)

(148)

(7.5)

Other consumer

—

Total consumer

1,824

1,877

1,972

(53)

(2.8)

(148)

(7.5)

Total nonaccrual loans

12,923

14,016

23,307

(1,093)

(7.8)

(10,384)

(44.6)

Other real estate owned

—

Total nonperforming assets

$12,923

$14,016

$23,307

($1,093)

(7.8 %)

($10,384)

(44.6 %)

Past Due Loans (30 days or more past due):

Commercial real estate

$648

$—

$648

100.0 %

$648

100.0 %

Commercial & industrial

900

(1)

(12.5)

(893)

(99.2)

Total commercial

655

900

647

8,087.5

(245)

(27.2)

Residential real estate

9,095

6,470

7,741

2,625

40.6

1,354

17.5

Home equity

1,607

1,583

2,947

1.5

(1,340)

(45.5)

Other consumer

394

(25)

(49.0)

(368)

(93.4)

Total consumer

1,633

1,634

3,341

(1)

(0.1)

(1,708)

(51.1)

Total past due loans

$11,383

$8,112

$11,982

$3,271

40.3 %

($599)

(5.0 %)

Accruing loans 90 days or more past due

$—

— %

$—

— %

Nonaccrual loans included in past due loans

$8,348

$5,925

$6,447

$2,423

40.9 %

$1,901

29.5 %

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

For the Three Months Ended

For the Year Ended Dec 31,

Dec 31,

2025

Sep 30,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

Nonaccrual Loan Activity:

Balance at beginning of period

$14,016

$26,108

$31,142

$23,307

$44,618

Additions to nonaccrual status

1,851

1,068

5,417

15,515

8,284

Loans returned to accruing status

(1,229)

—

(9)

(2,726)

(14,410)

Loans charged-off

(87)

(11,459)

(2,231)

(14,735)

(2,413)

Loans transferred to other real estate owned

—

Payments, payoffs, and other changes

(1,628)

(1,701)

(11,012)

(8,438)

(12,772)

Balance at end of period

$12,923

$14,016

$23,307

$12,923

$23,307

Allowance for Credit Losses on Loans:

Balance at beginning of period

$36,576

$41,059

$42,630

$41,960

$41,057

Provision for credit losses on loans (1)

500

6,950

1,200

9,500

2,900

Charge-offs

(87)

(11,459)

(2,231)

(14,735)

(2,413)

Recoveries

247

361

511

416

Balance at end of period

$37,236

$36,576

$41,960

$37,236

$41,960

Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of period

$1,040

$1,190

$1,640

$1,440

$1,940

Provision for credit losses on unfunded commitments (1)

100

(150)

(200)

(300)

(500)

Balance at end of period (2)

$1,140

$1,040

$1,440

$1,140

$1,440

(1)

Included in provision for credit losses in the Consolidated Statements of Income.

(2)

Included in other liabilities in the Consolidated Balance Sheets.

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

Q4 2025 vs. Q3 2025

Q4 2025 vs. Q4 2024

Q4 2025

Q3 2025

Q4 2024

Provision for Credit Losses:

Provision for credit losses on loans

$500

$6,950

$1,200

($6,450)

(92.8 %)

($700)

(58.3 %)

Provision for credit losses on unfunded commitments

100

(150)

(200)

250

166.7

300

150.0

Provision for credit losses

$600

$6,800

$1,000

($6,200)

(91.2 %)

($400)

(40.0 %)

Net Loan Charge-Offs (Recoveries):

Commercial real estate

($118)

$2,991

$1,961

($3,109)

(103.9 %)

($2,079)

(106.0 %)

Commercial & industrial

(111)

8,355

181

(8,466)

(101.3)

(292)

(161.3)

Total commercial

(229)

11,346

2,142

(11,575)

(102.0)

(2,371)

(110.7)

Residential real estate

—

(160)

—

160

100.0

Home equity

(1)

(15)

(189)

93.3

188

99.5

Other consumer

102

(32)

(31.4)

(7)

(9.1)

Total consumer

(112)

(18)

(20.7)

181

161.6

Total

($160)

$11,433

$1,870

($11,593)

(101.4 %)

($2,030)

(108.6 %)

Change

For the Year Ended Dec 31,

2025

2024

Provision for Credit Losses:

Provision for credit losses on loans

$9,500

$2,900

$6,600

227.6 %

Provision for credit losses on unfunded commitments

(300)

(500)

200

40.0

Provision for credit losses

$9,200

$2,400

$6,800

283.3 %

Net Loan Charge-Offs (Recoveries):

Commercial real estate

$5,397

$1,961

$3,436

175.2 %

Commercial & industrial

8,554

186

8,368

4,498.9

Total commercial

13,951

2,147

11,804

549.8

Residential real estate

—

(160)

160

100.0

Home equity

(18)

(197)

179

90.9

Other consumer

291

207

40.6

Total consumer

273

263

2,630.0

Total

$14,224

$1,997

$12,227

612.3 %

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

The following tables present daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.

For the Three Months Ended

Dec 31, 2025

Sep 30, 2025

Change

Average

Balance

Interest

Yield/

Rate

Average

Balance

Interest

Yield/

Rate

Average

Balance

Interest

Yield/

Rate

Assets:

Cash, federal funds sold, and short-term

investments

$131,215

$1,291

3.90 %

$137,021

$1,475

4.27 %

($5,806)

($184)

(0.37 %)

Mortgage loans held for sale

38,696

606

6.21

31,957

542

6.73

6,739

(0.52)

Taxable debt securities

1,051,549

9,100

3.43

1,075,119

9,372

3.46

(23,570)

(272)

(0.03)

Nontaxable debt securities

650

4.88

650

4.88

—

Total securities

1,052,199

9,108

3.43

1,075,769

9,380

3.46

(23,570)

(272)

(0.03)

FHLB stock

32,918

792

9.55

42,549

764

7.12

(9,631)

2.43

Commercial real estate

2,148,052

30,724

5.67

2,201,220

32,293

5.82

(53,168)

(1,569)

(0.15)

Commercial & industrial

561,035

8,292

5.86

553,867

8,203

5.88

7,168

(0.02)

Total commercial

2,709,087

39,016

5.71

2,755,087

40,496

5.83

(46,000)

(1,480)

(0.12)

Residential real estate

2,062,589

22,829

4.39

2,088,066

23,032

4.38

(25,477)

(203)

0.01

Home equity

313,759

5,194

6.57

303,480

5,270

6.89

10,279

(76)

(0.32)

Other

16,764

216

5.11

16,292

205

4.99

472

0.12

Total consumer

330,523

5,410

6.49

319,772

5,475

6.79

10,751

(65)

(0.30)

Total loans

5,102,199

67,255

5.23

5,162,925

69,003

5.30

(60,726)

(1,748)

(0.07)

Total interest-earning assets

6,357,227

79,052

4.93

6,450,221

81,164

4.99

(92,994)

(2,112)

(0.06)

Noninterest-earning assets

290,006

288,575

1,431

Total assets

$6,647,233

$6,738,796

($91,563)

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits (in-

market)

$734,617

$6,375

3.44 %

$685,422

$6,503

3.76 %

$49,195

($128)

(0.32 %)

NOW accounts

671,840

348

0.21

669,493

390

0.23

2,347

(42)

(0.02)

Money market accounts

1,198,818

8,846

2.93

1,174,584

9,620

3.25

24,234

(774)

(0.32)

Savings accounts

757,843

3,456

1.81

719,229

3,624

2.00

38,614

(168)

(0.19)

Time deposits (in-market)

1,225,779

11,035

3.57

1,209,011

11,080

3.64

16,768

(45)

(0.07)

Interest-bearing in-market deposits

4,588,897

30,060

2.60

4,457,739

31,217

2.78

131,158

(1,157)

(0.18)

Wholesale brokered time deposits

—

539

4.42

(539)

(6)

(4.42)

Total interest-bearing deposits

4,588,897

30,060

2.60

4,458,278

31,223

2.78

130,619

(1,163)

(0.18)

FHLB advances

708,174

7,696

4.31

942,685

10,542

4.44

(234,511)

(2,846)

(0.13)

Junior subordinated debentures

22,681

333

5.82

22,681

347

6.07

—

(14)

(0.25)

Total interest-bearing liabilities

5,319,752

38,089

2.84

5,423,644

42,112

3.08

(103,892)

(4,023)

(0.24)

Noninterest-bearing demand deposits

647,274

648,268

(994)

Other liabilities

138,742

138,569

173

Shareholders' equity

541,465

528,315

13,150

Total liabilities and shareholders' equity

$6,647,233

$6,738,796

($91,563)

Net interest income (FTE)

$40,963

$39,052

$1,911

Interest rate spread

2.09 %

1.91 %

0.18 %

Net interest margin

2.56 %

2.40 %

0.16 %

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

For the Three Months Ended

Dec 31, 2025

Sep 30, 2025

Change

Commercial loans

$214

$218

($4)

Nontaxable debt securities

—

(1)

Total

$214

$219

($5)

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Year Ended

Dec 31, 2025

Dec 31, 2024

Change

Average

Balance

Interest

Yield/

Rate

Average

Balance

Interest

Yield/

Rate

Average

Balance

Interest

Yield/

Rate

Assets:

Cash, federal funds sold and short-term

investments

$136,515

$5,788

4.24 %

$129,119

$6,977

5.40 %

$7,396

($1,189)

(1.16 %)

Mortgage loans for sale

50,609

2,548

5.03

34,040

1,775

5.21

16,569

773

(0.18)

Taxable debt securities

1,059,255

36,529

3.45

1,118,092

27,850

2.49

(58,837)

8,679

0.96

Nontaxable debt securities

650

4.92

185

4.86

465

0.06

Total securities

1,059,905

36,561

3.45

1,118,277

27,859

2.49

(58,372)

8,702

0.96

FHLB stock

40,088

3,370

8.41

57,286

4,771

8.33

(17,198)

(1,401)

0.08

Commercial real estate

2,162,523

124,597

5.76

2,145,496

135,323

6.31

17,027

(10,726)

(0.55)

Commercial & industrial

550,955

32,336

5.87

583,827

37,623

6.44

(32,872)

(5,287)

(0.57)

Total commercial

2,713,478

156,933

5.78

2,729,323

172,946

6.34

(15,845)

(16,013)

(0.56)

Residential real estate

2,091,742

92,211

4.41

2,537,903

105,253

4.15

(446,161)

(13,042)

0.26

Home equity

303,202

20,693

6.82

302,980

21,136

6.98

222

(443)

(0.16)

Other

16,849

844

5.01

18,277

882

4.83

(1,428)

(38)

0.18

Total consumer

320,051

21,537

6.73

321,257

22,018

6.85

(1,206)

(481)

(0.12)

Total loans

5,125,271

270,681

5.28

5,588,483

300,217

5.37

(463,212)

(29,536)

(0.09)

Total interest-earning assets

6,412,388

318,948

4.97

6,927,205

341,599

4.93

(514,817)

(22,651)

0.04

Noninterest-earning assets

286,013

253,957

32,056

Total assets

$6,698,401

$7,181,162

($482,761)

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits (in-

market)

$678,515

$25,005

3.69 %

$550,652

$24,156

4.39 %

$127,863

$849

(0.70 %)

NOW accounts

672,808

1,423

0.21

701,989

1,572

0.22

(29,181)

(149)

(0.01)

Money market accounts

1,196,803

38,273

3.20

1,127,960

42,710

3.79

68,843

(4,437)

(0.59)

Savings accounts

677,064

12,010

1.77

489,998

3,704

0.76

187,066

8,306

1.01

Time deposits (in-market)

1,213,692

44,727

3.69

1,172,500

47,595

4.06

41,192

(2,868)

(0.37)

Interest-bearing in-market deposits

4,438,882

121,438

2.74

4,043,099

119,737

2.96

395,783

1,701

(0.22)

Wholesale brokered time deposits

48,703

2,457

5.04

504,638

26,361

5.22

(455,935)

(23,904)

(0.18)

Total interest-bearing deposits

4,487,585

123,895

2.76

4,547,737

146,098

3.21

(60,152)

(22,203)

(0.45)

FHLB advances

885,668

39,635

4.48

1,312,391

64,539

4.92

(426,723)

(24,904)

(0.44)

Junior subordinated debentures

22,681

1,373

6.05

22,681

1,593

7.02

—

(220)

(0.97)

Total interest-bearing liabilities

5,395,934

164,903

3.06

5,882,809

212,230

3.61

(486,875)

(47,327)

(0.55)

Noninterest-bearing demand deposits

633,193

664,557

(31,364)

Other liabilities

142,557

154,019

(11,462)

Shareholders' equity

526,717

479,777

46,940

Total liabilities and shareholders' equity

$6,698,401

$7,181,162

($482,761)

Net interest income (FTE)

$154,045

$129,369

$24,676

Interest rate spread

1.91 %

1.32 %

0.59 %

Net interest margin

2.40 %

1.87 %

0.53 %

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

For the Year Ended

Dec 31, 2025

Dec 31, 2024

Change

Commercial loans

$858

$916

($58)

Nontaxable debt securities

Total

$860

$917

($57)

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures

(Unaudited; Dollars in thousands, except per share amounts)

The following tables present adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, and adjusted net income available to common shareholders:

Q4 2025 vs. Q3 2025

Q4 2025 vs. Q4 2024

Q4 2025

Q3 2025

Q4 2024

Adjusted Noninterest Income:

Noninterest income (loss), as reported

$18,503

$17,636

($77,892)

$867

4.9 %

$96,395

123.8 %

Less adjustments:

Realized losses on securities, net (1)

—

(31,047)

—

31,047

100.0

Losses on sale of portfolio loans, net (1)

—

(62,888)

—

62,888

100.0

Total adjustments, pre-tax

—

(93,935)

—

93,935

100.0

Adjusted noninterest income (non-GAAP)

$18,503

$17,636

$16,043

$867

4.9 %

$2,460

15.3 %

Adjusted Income Before Income Taxes:

Income (loss) before income taxes

$20,668

$13,943

($80,248)

$6,725

48.2 %

$100,916

125.8 %

Less: total adjustments, pre-tax

—

(93,935)

—

93,935

100.0

Adjusted income before income taxes (non-GAAP)

$20,668

$13,943

$13,687

$6,725

48.2 %

$6,981

51.0 %

Adjusted Income Tax Expense:

Income tax expense (benefit), as reported

$4,694

$3,097

($19,457)

$1,597

51.6 %

$24,151

124.1 %

Less: tax on total adjustments

—

(22,699)

—

22,699

100.0

Adjusted income tax expense (non-GAAP)

$4,694

$3,097

$3,242

$1,597

51.6 %

$1,452

44.8 %

Adjusted Net Income:

Net income (loss), as reported

$15,974

$10,846

($60,791)

$5,128

47.3 %

$76,765

126.3 %

Less: total adjustments, after-tax

—

(71,236)

—

71,236

100.0

Adjusted net income (non-GAAP)

$15,974

$10,846

$10,445

$5,128

47.3 %

$5,529

52.9 %

Adjusted Net Income Available to Common Shareholders:

Net income (loss) available to common shareholders,

as reported

$15,974

$10,846

($60,776)

$5,128

47.3 %

$76,750

126.3 %

Less: total adjustments available to common

shareholders, after-tax

—

(71,221)

—

71,221

100.0

Adjusted net income available to common

shareholders (non-GAAP)

$15,974

$10,846

$10,445

$5,128

47.3 %

$5,529

52.9 %

(1)

Associated with the balance sheet repositioning transactions executed in December 2024.

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures

(Unaudited; Dollars in thousands, except per share amounts)

Change

For the Year Ended Dec 31,

2025

2024

Adjusted Noninterest Income:

Noninterest income (loss), as reported

$75,860

($27,797)

$103,657

372.9 %

Less adjustments:

Realized losses on securities, net (1)

—

(31,047)

31,047

100.0

Losses on sale of portfolio loans, net (1)

—

(62,888)

62,888

100.0

Gain on sale of bank-owned properties, net

6,994

988

6,006

607.9

Litigation settlement income

—

2,100

(2,100)

(100.0)

Total adjustments, pre-tax

6,994

(90,847)

97,841

107.7

Adjusted noninterest income (non-GAAP)

$68,866

$63,050

$5,816

9.2 %

Adjusted Noninterest Expense:

Noninterest expense, as reported

$152,435

$137,069

$15,366

11.2 %

Less adjustments:

Pension plan settlement charge

6,436

—

6,436

100.0

Total adjustments, pre-tax

6,436

—

6,436

100.0

Adjusted noninterest expense (non-GAAP)

$145,999

$137,069

$8,930

6.5 %

Adjusted Income Before Income Taxes:

Income (loss) before income taxes

$67,413

($38,818)

$106,231

273.7 %

Less: total adjustments, pre-tax

558

(90,847)

91,405

100.6

Adjusted income before income taxes (non-GAAP)

$66,855

$52,029

$14,826

28.5 %

Adjusted Income Tax Expense:

Income tax expense (benefit), as reported

$15,169

($10,759)

$25,928

241.0 %

Less: tax on total adjustments

141

(21,920)

22,061

100.6

Adjusted income tax expense (non-GAAP)

$15,028

$11,161

$3,867

34.6 %

Adjusted Net Income:

Net income (loss), as reported

$52,244

($28,059)

$80,303

286.2 %

Less: total adjustments, after-tax

417

(68,927)

69,344

100.6

Adjusted net income (non-GAAP)

$51,827

$40,868

$10,959

26.8 %

Adjusted Net Income Available to Common Shareholders:

Net income (loss) available to common shareholders, as reported

$52,244

($28,038)

$80,282

286.3 %

Less: total adjustments available to common shareholders, after-tax

417

(68,906)

69,323

100.6

Adjusted net income available to common shareholders (non-GAAP)

$51,827

$40,868

$10,959

26.8 %

(1)

Associated with the balance sheet repositioning transactions executed in December 2024.

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)

The following tables present adjusted diluted earnings per common share and adjusted efficiency ratio:

Q4 2025

Q3 2025

Q4 2024

Q4 2025 vs. Q3 2025

Q4 2025 vs. Q4 2024

Adjusted Diluted Earnings per Common Share:

Diluted earnings (loss) per common share, as

reported (1)

$0.83

$0.56

($3.48)

$0.27

48.2 %

$4.31

123.9 %

Less: impact of total adjustments

—

(4.07)

—

4.07

100.0

Adjusted diluted earnings per common share

(non-GAAP) (2)

$0.83

$0.56

$0.59

$0.27

48.2 %

$0.24

40.7 %

Adjusted Efficiency Ratio:

Efficiency ratio, as reported (3)

64.1 %

63.3 %

(76.3 %)

80 bps

14,040 bps

Less: impact of total adjustments

—

(146.3)

— bps

14,630 bps

Adjusted efficiency ratio (non-GAAP) (4)

64.1 %

63.3 %

70.0 %

80 bps

(590) bps

For the Year Ended Dec 31,

2025

2024

Change

Adjusted Diluted Earnings per Common Share:

Diluted earnings (loss) per common share, as reported (1)

$2.71

($1.63)

$4.34

266.3 %

Less: impact of total adjustments

0.02

(4.00)

4.02

100.5

Adjusted diluted earnings per common share (non-GAAP) (2)

$2.69

$2.37

$0.32

13.5 %

Adjusted Efficiency Ratio:

Efficiency ratio, as reported (3)

66.6 %

136.2 %

(6,960) bps

Less: impact of total adjustments

0.9

64.6

(6,370) bps

Adjusted efficiency ratio (non-GAAP) (4)

65.7 %

71.6 %

(590) bps

(1)

Net income (loss) available to common shareholders divided by weighted average diluted common and potential shares outstanding.

(2)

Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding.

(3)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income).

(4)

Total noninterest expense as percentage of total revenues (net interest income and noninterest income), each adjusted for the pre-tax impact of adjustments as outlined in the table above.

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)

The following tables present adjusted return on average assets and return on average tangible assets:

Q4 2025

Q3 2025

Q4 2024

Q4 2025 vs. Q3 2025

Q4 2025 vs. Q4 2024

Adjusted Return on Average Assets:

Net income (loss), as reported

$15,974

$10,846

($60,791)

$5,128

47.3 %

$76,765

126.3 %

Less: total adjustments, after-tax

—

(71,236)

—

71,236

100.0

Adjusted net income (non-GAAP)

$15,974

$10,846

$10,445

$5,128

47.3 %

$5,529

52.9 %

Total average assets, as reported

$6,647,233

$6,738,796

$7,011,839

($91,563)

(1.4 %)

($364,606)

(5.2 %)

Return on average assets (1)

0.95 %

0.64 %

(3.45 %)

31 bps

440 bps

Adjusted return on average assets (non-GAAP) (2)

0.95 %

0.64 %

0.59 %

31 bps

36 bps

Return on Average Tangible Assets:

Adjusted net income (non-GAAP)

$15,974

$10,846

$10,445

$5,128

47.3 %

$5,529

52.9 %

Total average assets, as reported

$6,647,233

$6,738,796

$7,011,839

($91,563)

(1.4 %)

($364,606)

(5.2 %)

Less average balances of:

Goodwill

63,909

—

Identifiable intangible assets, net

4,378

3,821

2,984

557

14.6

1,394

46.7

Total average tangible assets

$6,578,946

$6,671,066

$6,944,946

($92,120)

(1.4 %)

($366,000)

(5.3 %)

Return on average assets (1)

0.95 %

0.64 %

(3.45 %)

31 bps

440 bps

Return on average tangible assets (non-GAAP) (3)

0.96 %

0.65 %

0.60 %

31 bps

36 bps

For the Year Ended Dec 31,

2025

2024

Change

Adjusted Return on Average Assets:

Net income (loss), as reported

$52,244

($28,059)

$80,303

286.2 %

Less: total adjustments, after-tax

417

(68,927)

69,344

100.6

Adjusted net income (non-GAAP)

$51,827

$40,868

$10,959

26.8 %

Total average assets, as reported

$6,698,401

$7,181,162

($482,761)

(6.7 %)

Return on average assets (1)

0.78 %

(0.39 %)

117 bps

Adjusted return on average assets (non-GAAP) (2)

0.77 %

0.57 %

20 bps

Return on Average Tangible Assets:

Adjusted net income (non-GAAP)

$51,827

$40,868

$10,959

26.8 %

Total average assets, as reported

$6,698,401

$7,181,162

($482,761)

(6.7 %)

Less average balances of:

Goodwill

63,909

—

Identifiable intangible assets, net

3,395

3,292

103

3.1

Total average tangible assets

$6,631,097

$7,113,961

($482,864)

(6.8 %)

Return on average assets (1)

0.78 %

(0.39 %)

117 bps

Return on average tangible assets (non-GAAP) (3)

0.78 %

0.57 %

21 bps

(1)

Net income (income) loss divided by total average assets.

(2)

Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets.

(3)

Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible assets.

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)

The following tables present adjusted return on average equity and return on average tangible equity:

Q4 2025

Q3 2025

Q4 2024

Q4 2025 vs. Q3 2025

Q4 2025 vs. Q4 2024

Adjusted Return on Average Equity:

Net income (loss) available to common

shareholders, as reported

$15,974

$10,846

($60,776)

$5,128

47.3 %

$76,750

126.3 %

Less: total adjustments, after-tax

—

(71,221)

—

71,221

100.0

Adjusted net income available to common

shareholders (non-GAAP)

$15,974

$10,846

$10,445

$5,128

47.3 %

$5,529

52.9 %

Total average equity, as reported

$541,465

$528,315

$501,099

$13,150

2.5 %

$40,366

8.1 %

Return on average equity (1)

11.70 %

8.14 %

(48.25 %)

356 bps

5,995 bps

Adjusted return on average equity

(non-GAAP) (2)

11.70 %

8.14 %

8.29 %

356 bps

341 bps

Return on Average Tangible Equity:

Adjusted net income available to common

shareholders (non-GAAP)

$15,974

$10,846

$10,445

$5,128

47.3 %

$5,529

52.9 %

Total average equity, as reported

$541,465

$528,315

$501,099

$13,150

2.5 %

$40,366

8.1 %

Less average balances of:

Goodwill

63,909

—

Identifiable intangible assets, net

4,378

3,821

2,984

557

14.6

1,394

46.7

Total average tangible equity (non-GAAP)

$473,178

$460,585

$434,206

$12,593

2.7 %

$38,972

9.0 %

Return on average equity (1)

11.70 %

8.14 %

(48.25 %)

356 bps

5,995 bps

Return on average tangible equity

(non-GAAP) (3)

13.39 %

9.34 %

9.57 %

405 bps

382 bps

(1)

Net income (loss) available to common shareholders divided by total average equity.

(2)

Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.

(3)

Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible equity.

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)

For the Year Ended Dec 31,

2025

2024

Change

Adjusted Return on Average Equity:

Net income (loss) available to common shareholders, as reported

$52,244

($28,038)

$80,282

286.3 %

Less: total adjustments, after-tax

417

(68,906)

69,323

100.6

Adjusted net income available to common shareholders (non-GAAP)

$51,827

$40,868

$10,959

26.8

Total average equity, as reported

$526,717

$479,777

$46,940

9.8

Return on average equity (1)

9.92 %

(5.84 %)

1,576 bps

Adjusted return on average equity (non-GAAP) (2)

9.84 %

8.52 %

132 bps

Return on Average Tangible Equity:

Adjusted net income available to common shareholders (non-GAAP)

$51,827

$40,868

$10,959

26.8 %

Total average equity, as reported

$526,717

$479,777

$46,940

9.8

Less average balances of:

Goodwill

63,909

—

Identifiable intangible assets, net

3,395

3,292

103

3.1

Total average tangible equity (non-GAAP)

$459,413

$412,576

$46,837

11.4

Return on average equity (1)

9.92 %

(5.84 %)

1,576 bps

Return on average tangible equity (non-GAAP) (3)

11.28 %

9.91 %

137 bps

(1)

Net income (loss) available to common shareholders divided by total average equity.

(2)

Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.

(3)

Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible equity.

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)

(Unaudited; Dollars in thousands, except per share amounts)

The following table presents tangible book value per share and the ratio of tangible equity to tangible assets:

Dec 31,

2025

Sep 30,

2025

Dec 31,

2024

Dec 31, 2025 vs.

Sep 30, 2025

Dec 31, 2025 vs.

Dec 31, 2024

Tangible Book Value per Share:

Total shareholders' equity, as reported

$543,584

$533,021

$499,728

$10,563

2.0 %

$43,856

8.8 %

Less end of period balances of:

Goodwill

63,909

—

— %

—

— %

Identifiable intangible assets, net

4,303

4,458

2,885

(155)

(3.5) %

1,418

49.2 %

Total tangible shareholders' equity (non-GAAP)

$475,372

$464,654

$432,934

$10,718

2.3 %

$42,438

9.8 %

Shares outstanding, as reported

19,035

19,050

19,274

(15)

(0.1 %)

(239)

(1.2 %)

Book value per share

$28.56

$27.98

$25.93

$0.58

2.1 %

$2.63

10.1 %

Tangible book value per share (non-GAAP)

$24.97

$24.39

$22.46

$0.58

2.4 %

$2.51

11.2 %

Tangible Equity to Tangible Assets:

Total tangible shareholders' equity

$475,372

$464,654

$432,934

$10,718

2.3 %

$42,438

9.8 %

Total assets, as reported

$6,621,694

$6,717,921

$6,930,647

($96,227)

(1.4 %)

($308,953)

(4.5 %)

Less end of period balances of:

Goodwill

63,909

—

— %

—

— %

Identifiable intangible assets, net

4,303

4,458

2,885

(155)

(3.5 %)

1,418

49.2 %

Total tangible assets (non-GAAP)

$6,553,482

$6,649,554

$6,863,853

($96,072)

(1.4 %)

($310,371)

(4.5 %)

Equity to assets

8.21 %

7.93 %

7.21 %

28 bps

100 bps

Tangible equity to tangible assets (non-GAAP)

7.25 %

6.99 %

6.31 %

26 bps

94 bps

Category: Earnings

SOURCE Washington Trust Bancorp, Inc.