Washington Trust Reports Third Quarter 2025 Results

WESTERLY, R.I., Oct. 20, 2025 /PRNewswire/ -- Washington Trust Bancorp, Inc. (the "Corporation") (Nasdaq: WASH), parent company of The Washington Trust Company (the "Bank"), today reported third quarter 2025 net income of $10.8 million, or $0.56 per diluted share, down from $13.2 million, or $0.68 per diluted share, reported for the second quarter of 2025.

"In the third quarter we expanded our net interest income and margin, grew our wealth management and mortgage banking revenues, delivered strong in-market deposit growth, and prudently managed expenses," said Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III.  "We made several significant investments to drive future growth, including hiring a new senior executive with an extensive network and proven track record to lead our commercial banking division, and purchasing the client accounts of Lighthouse Financial Management, LLC, which added approximately $195 million of managed assets.  In addition, while we resolved two significant credit exposures this quarter, we are confident in our current portfolio quality and that we will continue our long track record of strong credit performance."

"Our long-standing reputation as a trusted financial partner in New England is built on a deep commitment to customer relationships," said Handy.  "We take pride in delivering personalized, convenient service — the foundation of relationship banking — through life's most important financial moments.  This approach not only strengthens our community ties but also drives long-term value for our shareholders."

Selected financial highlights for the third quarter of 2025 include:

Net Interest Income
Net interest income was $38.8 million for the third quarter of 2025, up by $1.6 million, or 4%, from the second quarter of 2025.  The net interest margin was 2.40% for the third quarter, an increase of 4 basis points from the preceding quarter.  Linked quarter changes included:

Noninterest Income
Noninterest income was $17.6 million for the third quarter of 2025, up by $558 thousand, or 3%, from the second quarter of 2025.  Linked quarter changes included:

Noninterest Expense
Noninterest expense totaled $35.7 million for the third quarter of 2025, down by $804 thousand, or 2%, from the second quarter of 2025.  Linked quarter changes included:

Income Tax
For the third quarter of 2025, income tax expense of $3.1 million was recognized, reflecting an effective tax rate of 22.2%.  This compares to income tax expense of $3.9 million and an effective tax rate of 22.7% in the second quarter of 2025.  Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2025 effective tax rate to be approximately 22.5%.

Investment Securities
The securities portfolio totaled $962 million at September 30, 2025, down by $9 million, or 1%, from June 30, 2025.  The securities portfolio represented 14% of total assets at both September 30, 2025 and June 30, 2025.

Loans
Total loans amounted to $5.1 billion at September 30, 2025, down by $18 million from the end of the preceding quarter.  These changes included:

Deposits and Borrowings
Total deposits amounted to $5.2 billion at September 30, 2025, up by $178 million, or 4%, from the end of the preceding quarter, reflecting growth across all in-market deposit categories.

There were no wholesale brokered deposits at September 30, 2025, compared to $2 million at June 30, 2025.  FHLB advances totaled $791 million at September 30, 2025, down by $210 million, or 21%, from June 30, 2025.

As of September 30, 2025, contingent liquidity amounted to $1.8 billion and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.

Asset Quality
The allowance for credit losses ("ACL") on loans amounted to $36.6 million, or 0.71% of total loans, at September 30, 2025, compared to $41.1 million, or 0.80% of total loans, at June 30, 2025.

The provision for credit losses on loans totaled $7.0 million in the third quarter of 2025, compared to $650 thousand in the preceding quarter. The increase in the provision was primarily due to charge-offs of $11.3 million on two commercial loan relationships.

Net charge-offs totaled  $11.4 million in the third quarter of 2025, compared to $647 thousand in the preceding quarter.

Nonaccrual loans amounted to $14.0 million, or 0.27% of total loans, at September 30, 2025, compared to $26.1 million, or 0.51% of total loans, at June 30, 2025.  The composition of nonaccrual loans at September 30, 2025 was $1.0 million, or 7%, commercial and $13.0 million, or 93%, residential and consumer.

Past due loans were $8.1 million, or 0.16% of total loans, at September 30, 2025, compared to $14.0 million, or 0.27% of total loans, at June 30, 2025.  The composition of past due loans at September 30, 2025 was essentially all residential and consumer.

Capital and Dividends
Total shareholders' equity was $533.0 million at September 30, 2025, up by $5.5 million, or 1%, from June 30, 2025.  Net income of $10.8 million and improvement of $11.1 million in the accumulated other comprehensive loss component of shareholders' equity were partially offset by quarterly dividend declarations of $10.8 million and a net increase in treasury stock of $6.3 million.  In the third quarter of 2025, the Corporation repurchased 236,803 shares, at an average price of $27.18 and a total cost of $6.4 million, under its stock repurchase program.

The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended September 30, 2025.  The dividend was paid on October 10, 2025 to shareholders of record on October 1, 2025.

Capital levels at September 30, 2025 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.90% at September 30, 2025, compared to 13.06% at June 30, 2025.  Book value per share was $27.98 at September 30, 2025, compared to $27.36 at June 30, 2025.

Conference Call
Washington Trust will host a conference call to discuss its third quarter results, business highlights, and outlook on Tuesday, October 21, 2025 at 8:30 a.m. (Eastern Time).  Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 906379.  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 706807.  The audio replay will be available through November 4, 2025.  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 December 31, 2025.

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. These forward-looking statements 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 effective tax rate, 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)

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Assets:

Cash and due from banks

$35,604

$43,997

$33,394

$21,534

$33,694

Interest-earning deposits with correspondent banks

143,886

119,582

82,804

88,368

173,277

Short-term investments

12,841

4,145

4,041

3,987

3,772

Mortgage loans held for sale, at fair value

31,318

35,681

21,953

21,708

20,864

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

—

—

—

281,706

—

Premises and equipment held for sale, lower of cost or market

—

—

—

4,788

—

Available for sale debt securities, at fair value

962,466

971,341

917,545

916,305

973,266

Federal Home Loan Bank stock, at cost

36,331

45,273

38,899

49,817

57,439

Loans:

Total loans

5,122,582

5,140,260

5,096,210

5,137,838

5,514,870

Less: allowance for credit losses on loans

36,576

41,059

41,056

41,960

42,630

Net loans

5,086,006

5,099,201

5,055,154

5,095,878

5,472,240

Premises and equipment, net

25,065

25,574

26,068

26,873

32,145

Operating lease right-of-use assets

35,968

35,578

36,048

26,943

27,612

Investment in bank-owned life insurance

114,240

113,372

107,546

106,777

105,998

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

4,458

2,478

2,682

2,885

3,089

Other assets

165,829

185,036

195,972

219,169

174,266

Total assets

$6,717,921

$6,745,167

$6,586,015

$6,930,647

$7,141,571

Liabilities:

Deposits:

Noninterest-bearing deposits

$671,309

$646,584

$625,590

$661,776

$665,706

Interest-bearing deposits

4,551,527

4,398,664

4,414,991

4,454,024

4,506,184

Total deposits

5,222,836

5,045,248

5,040,581

5,115,800

5,171,890

Federal Home Loan Bank advances

791,000

1,001,000

850,000

1,125,000

1,300,000

Junior subordinated debentures

22,681

22,681

22,681

22,681

22,681

Operating lease liabilities

38,741

38,299

38,716

29,578

30,237

Other liabilities

109,642

110,420

112,357

137,860

114,534

Total liabilities

6,184,900

6,217,648

6,064,335

6,430,919

6,639,342

Shareholders' Equity:

Common stock

1,223

1,223

1,223

1,223

1,085

Paid-in capital

198,058

197,392

197,570

196,947

126,698

Retained earnings

437,545

437,520

435,233

434,014

505,654

Accumulated other comprehensive loss

(84,828)

(95,949)

(99,179)

(119,171)

(117,158)

Treasury stock, at cost

(18,977)

(12,667)

(13,167)

(13,285)

(14,050)

Total shareholders' equity

533,021

527,519

521,680

499,728

502,229

Total liabilities and shareholders' equity

$6,717,921

$6,745,167

$6,586,015

$6,930,647

$7,141,571

Washington Trust Bancorp, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

For the Three Months Ended

For the Nine Months Ended

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Sep 30,
2025

Sep 30,
2024

Interest income:

Interest and fees on loans

$68,785

$67,345

$66,656

$71,432

$75,989

$202,786

$227,865

Interest on mortgage loans held for sale

542

442

958

762

366

1,942

1,013

Taxable interest on debt securities

9,372

9,230

8,827

7,015

6,795

27,429

20,835

Nontaxable interest on debt securities

7

8

7

8

—

22

—

Dividends on Federal Home Loan Bank stock

764

792

1,022

1,312

1,262

2,578

3,459

Other interest income

1,475

1,029

1,993

1,310

3,174

4,497

5,667

Total interest and dividend income

80,945

78,846

79,463

81,839

87,586

239,254

258,839

Interest expense:

Deposits

31,223

30,864

31,748

34,135

37,203

93,835

111,963

Federal Home Loan Bank advances

10,542

10,451

10,946

14,388

17,717

31,939

50,151

Junior subordinated debentures

347

346

347

380

404

1,040

1,213

Total interest expense

42,112

41,661

43,041

48,903

55,324

126,814

163,327

Net interest income

38,833

37,185

36,422

32,936

32,262

112,440

95,512

Provision for credit losses

6,800

600

1,200

1,000

200

8,600

1,400

Net interest income after provision for credit losses

32,033

36,585

35,222

31,936

32,062

103,840

94,112

Noninterest income (loss):

Wealth management revenues

10,373

10,120

9,891

10,049

9,989

30,384

29,005

Mortgage banking revenues

3,501

3,034

2,304

2,848

2,866

8,839

8,133

Card interchange fees

1,163

1,247

1,509

1,255

1,321

3,919

3,741

Service charges on deposit accounts

841

808

744

794

784

2,393

2,238

Loan related derivative income

271

676

101

8

126

1,048

459

Income from bank-owned life insurance

868

826

769

779

770

2,463

2,262

Realized losses on securities, net

—

—

—

(31,047)

—

—

—

Losses on sale of portfolio loans, net

—

—

—

(62,888)

—

—

—

Gain on sale of bank-owned properties, net

—

—

6,994

—

—

6,994

988

Other income

619

367

331

310

416

1,317

3,269

Total noninterest income (loss)

17,636

17,078

22,643

(77,892)

16,272

57,357

50,095

Noninterest expense:

Salaries and employee benefits

22,674

23,025

22,422

21,875

21,350

68,121

64,385

Outsourced services

4,120

4,404

4,346

4,197

4,185

12,870

12,061

Net occupancy

2,691

2,662

2,741

2,428

2,399

8,094

7,357

Equipment

917

930

891

936

924

2,738

2,902

Legal, audit, and professional fees

719

726

750

845

836

2,195

2,283

FDIC deposit insurance costs

1,055

1,235

1,262

1,266

1,402

3,552

4,247

Advertising and promotion

763

717

410

560

857

1,890

2,066

Amortization of intangibles

200

203

204

204

206

607

622

Pension plan settlement charge

—

—

6,436

—

—

6,436

—

Other expenses

2,587

2,628

2,734

1,981

2,345

7,949

6,854

Total noninterest expense

35,726

36,530

42,196

34,292

34,504

114,452

102,777

Income (loss) before income taxes

13,943

17,133

15,669

(80,248)

13,830

46,745

41,430

Income tax expense (benefit)

3,097

3,888

3,490

(19,457)

2,849

10,475

8,698

Net income (loss)

$10,846

$13,245

$12,179

($60,791)

$10,981

$36,270

$32,732

Net income (loss) available to common shareholders

$10,846

$13,245

$12,179

($60,776)

$10,973

$36,270

$32,732

Weighted average common shares outstanding - basic

19,128

19,285

19,276

17,452

17,058

19,229

17,048

Weighted average common shares outstanding - diluted

19,243

19,374

19,370

17,565

17,140

19,329

17,115

Per share information:

Basic earnings per common share

$0.57

$0.69

$0.63

($3.48)

$0.64

$1.89

$1.92

Diluted earnings per common share

$0.56

$0.68

$0.63

($3.46)

$0.64

$1.88

$1.91

Cash dividends declared

$0.56

$0.56

$0.56

$0.56

$0.56

$1.68

$1.68

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

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

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Share and Equity Related Data:

Book value per share

$27.98

$27.36

$27.06

$25.93

$29.44

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

$24.39

$23.91

$23.61

$22.46

$25.51

Market value per share

$28.90

$28.28

$30.86

$31.35

$32.21

Shares issued at end of period

19,562

19,562

19,562

19,562

17,363

Shares outstanding at end of period

19,050

19,283

19,276

19,274

17,058

Capital Ratios (2) :

Tier 1 risk-based capital

12.11 %

12.17 %

12.23 %

11.64 %

11.39 %

Total risk-based capital

12.90 %

13.06 %

13.13 %

12.47 %

12.21 %

Tier 1 leverage ratio

8.43 %

8.66 %

8.45 %

8.13 %

7.85 %

Common equity tier 1

11.64 %

11.71 %

11.76 %

11.20 %

10.95 %

Balance Sheet Ratios:

Equity to assets

7.93 %

7.82 %

7.92 %

7.21 %

7.03 %

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

6.99 %

6.90 %

6.98 %

6.31 %

6.15 %

Loans to deposits (3)

98.0 %

101.8 %

100.7 %

105.5 %

106.2 %

For the Three Months Ended

For the Nine Months Ended

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Sep 30,
2025

Sep 30,
2024

Performance Ratios (4) :

Net interest margin (5)

2.40 %

2.36 %

2.29 %

1.95 %

1.85 %

2.35 %

1.84 %

Return on average assets (6)

0.64 %

0.80 %

0.73 %

(3.45 %)

0.60 %

0.72 %

0.60 %

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

0.64 %

0.80 %

0.71 %

0.59 %

0.60 %

0.71 %

0.56 %

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

0.65 %

0.81 %

0.71 %

0.60 %

0.61 %

0.72 %

0.57 %

Return on average equity (7)

8.14 %

10.14 %

9.63 %

(48.25 %)

8.99 %

9.29 %

9.25 %

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

8.14 %

10.14 %

9.30 %

8.29 %

8.99 %

9.19 %

8.60 %

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

9.34 %

11.62 %

10.69 %

9.57 %

10.43 %

10.54 %

10.03 %

Efficiency ratio (8)

63.3 %

67.3 %

71.4 %

(76.3 %)

71.1 %

67.4 %

70.6 %

Adjusted efficiency ratio (non-GAAP) (1)

63.3 %

67.3 %

68.7 %

70.0 %

71.1 %

66.3 %

72.1 %

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

(2)     Estimated for September 30, 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)

For the Three Months Ended

For the Nine Months Ended

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Sep 30,
2025

Sep 30,
2024

Wealth Management Results

Wealth Management Revenues:

Asset-based revenues

$10,307

$9,745

$9,769

$9,910

$9,770

$29,821

$28,098

Transaction-based revenues

66

375

122

139

219

563

907

Total wealth management revenues

$10,373

$10,120

$9,891

$10,049

$9,989

$30,384

$29,005

Assets Under Administration (AUA):

Balance at end of period (1)

$7,682,440

$7,181,715

$6,818,390

$7,077,802

$7,052,408

$7,682,440

$7,052,408

Percentage of AUA that are managed assets

91 %

91 %

91 %

91 %

91 %

91 %

91 %

Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net (2)

$2,450

$2,460

$1,575

$2,493

$2,492

$6,485

$6,283

Changes in fair value, net (3)

530

19

133

(317)

(28)

682

316

Loan servicing fee income, net (4)

521

555

596

672

402

1,672

1,534

Total mortgage banking revenues

$3,501

$3,034

$2,304

$2,848

$2,866

$8,839

$8,133

Residential Mortgage Loan Originations:

Originations for retention in portfolio (5)

$50,852

$51,331

$27,662

$15,155

$26,317

$129,845

$77,311

Originations for sale to secondary market (6)

122,300

130,212

75,519

114,137

115,117

328,031

303,943

Total mortgage loan originations

$173,152

$181,543

$103,181

$129,292

$141,434

$457,876

$381,254

Percentage of originations for sale to total mortgage loan originations

71 %

72 %

73 %

88 %

81 %

72 %

80 %

Residential Mortgage Loans Sold:

Sold with servicing rights retained

$9,774

$7,762

$16,819

$62,410

$17,881

$34,355

$66,508

Sold with servicing rights released (6)

116,713

109,013

58,680

50,697

102,457

284,406

236,526

Total mortgage loans sold

$126,487

$116,775

$75,499

$113,107

$120,338

$318,761

$303,034

(1)

Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on July 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)

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Loans:

Commercial real estate (1)

$2,156,750

$2,178,925

$2,134,107

$2,154,504

$2,102,091

Commercial & industrial

568,317

547,318

535,030

542,474

566,279

Total commercial

2,725,067

2,726,243

2,669,137

2,696,978

2,668,370

Residential real estate (2)

2,073,740

2,096,250

2,113,307

2,126,171

2,529,397

Home equity

307,371

300,917

296,563

297,119

299,379

Other

16,404

16,850

17,203

17,570

17,724

Total consumer

323,775

317,767

313,766

314,689

317,103

Total loans

$5,122,582

$5,140,260

$5,096,210

$5,137,838

$5,514,870

(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.

September 30, 2025

December 31, 2024

Balance

% of Total

Balance

% of Total

Commercial Real Estate Loans by Property Location:

Connecticut

$833,352

39 %

$839,079

39 %

Massachusetts

671,406

31

663,026

31

Rhode Island

381,363

17

434,244

20

Subtotal

1,886,121

87

1,936,349

90

All other states

270,629

13

218,155

10

Total commercial real estate loans

$2,156,750

100 %

$2,154,504

100 %

Residential Real Estate Loans by Property Location:

Massachusetts

$1,460,357

70 %

$1,530,847

72 %

Rhode Island

466,056

23

443,237

21

Connecticut

124,805

6

128,933

6

Subtotal

2,051,218

99

2,103,017

99

All other states

22,522

1

23,154

1

Total residential real estate loans

$2,073,740

100 %

$2,126,171

100 %

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN COMPOSITION

(Unaudited; Dollars in thousands)

September 30, 2025

December 31, 2024

Balance

% of Total

Balance

% of Total

Commercial Real Estate Portfolio Segmentation:

Multi-family

$635,773

29 %

$567,243

26 %

Retail

432,695

20

433,146

20

Industrial and warehouse

381,435

18

358,425

17

Office

242,165

11

289,853

13

Hospitality

228,047

11

213,585

10

Healthcare Facility

160,410

7

205,858

10

Mixed-use

26,309

1

29,023

1

Other

49,916

3

57,371

3

Total commercial real estate loans

$2,156,750

100 %

$2,154,504

100 %

Commercial & Industrial Portfolio Segmentation:

Healthcare and social assistance

$148,760

26 %

$126,547

23 %

Real estate rental and leasing

56,402

10

63,992

12

Educational services

54,754

10

47,092

9

Transportation and warehousing

52,204

9

55,784

10

Retail trade

49,234

9

41,132

8

Accommodation and food services

26,161

5

12,368

2

Finance and insurance

25,561

4

26,557

5

Information

21,626

4

22,265

4

Manufacturing

20,903

4

32,140

6

Arts, entertainment, and recreation

18,646

3

19,861

4

Professional, scientific, and technical services

12,242

2

10,845

2

Public administration

1,789

—

2,186

—

Other

80,035

14

81,705

15

Total commercial & industrial loans

$568,317

100 %

$542,474

100 %

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

$85,633

$10,771

57 %

1.52x

$57,206

$22,240

$6,187

$—

Class B

72,038

3,430

54 %

1.55x

72,038

—

—

—

Class C

14,643

1,830

54 %

1.27x

12,466

2,177

—

—

Medical Office

37,517

6,253

58 %

1.49x

37,517

—

—

—

Lab Space

32,334

18,273

86 %

0.48x

—

6,579

25,755

—

Total office at September 30, 2025 (1)

$242,165

$5,487

60 %

1.36x

$179,227

$30,996

$31,942

$—

Total office at June 30, 2025

$274,657

$5,864

64 %

1.34x

$232,632

$8,706

$33,319

$4,276

Total office linked quarter change

($32,492)

($377)

(4 %)

0.02x

($53,405)

$22,290

($1,377)

($4,276)

(1)

Approximately 66% of the total commercial real estate office balance of $242 million is secured by income producing properties located in suburban areas.  Additionally, approximately 46% of the total commercial real estate office balance is scheduled to mature before September 30, 2027.

(2)

Balance of commercial real estate office consists of 45 loans as of September 30, 2025.

(3)

Does not include $4.7 million of unfunded commitments as of September 30, 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)

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Deposits:

Noninterest-bearing demand deposits

$671,309

$646,584

$625,590

$661,776

$665,706

Interest-bearing demand deposits (in-market)

703,848

668,483

654,599

592,904

596,319

NOW accounts

684,689

680,246

686,666

692,812

685,531

Money market accounts

1,195,463

1,147,792

1,202,703

1,154,745

1,146,426

Savings accounts

733,529

693,055

630,413

523,915

490,285

Time deposits (in-market) 

1,233,998

1,207,255

1,213,382

1,192,110

1,207,626

In-market deposits (1)

5,222,836

5,043,415

5,013,353

4,818,262

4,791,893

Wholesale brokered time deposits

—

1,833

27,228

297,538

379,997

Total deposits

$5,222,836

$5,045,248

$5,040,581

$5,115,800

$5,171,890

(1)

As of September 30, 2025, in-market deposits were approximately 59% retail and 41% commercial and the average size was approximately $39 thousand.

September 30, 2025

December 31, 2024

Balance

% of Total
Deposits

Balance

% of Total
Deposits

Uninsured Deposits:

Uninsured deposits (1)

$1,449,863

28 %

$1,363,689

27 %

Less: affiliate deposits (2)

90,198

2

94,740

2

Uninsured deposits, excluding affiliate deposits

1,359,665

26

1,268,949

25

Less: fully-collateralized preferred deposits (3)

228,992

4

197,638

4

Uninsured deposits, after exclusions

$1,130,673

22 %

$1,071,311

21 %

(1)

Determined in accordance with regulatory reporting requirements, which includes affiliate deposits and fully-collateralized preferred deposits.

(2)

Uninsured deposit balances of Washington Trust Bancorp, Inc. and its subsidiaries that are eliminated in consolidation.

(3)

Uninsured deposits of states and political subdivisions, which are secured or collateralized as required by state law.

Sep 30,
2025

Dec 31,
2024

Contingent Liquidity:

Federal Home Loan Bank of Boston

$1,074,797

$752,951

Federal Reserve Bank of Boston

105,793

70,286

Available cash liquidity (1)

107,291

36,647

Unencumbered securities

555,383

597,771

Total

$1,843,264

$1,457,655

Percentage of total contingent liquidity to uninsured deposits

127.1 %

106.9 %

Percentage of total contingent liquidity to uninsured deposits, after exclusions

163.0 %

136.1 %

(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)

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Asset Quality Ratios:

Nonperforming assets to total assets

0.21 %

0.39 %

0.33 %

0.34 %

0.44 %

Nonaccrual loans to total loans

0.27 %

0.51 %

0.42 %

0.45 %

0.56 %

Total past due loans to total loans

0.16 %

0.27 %

0.20 %

0.23 %

0.37 %

Allowance for credit losses on loans to nonaccrual loans

260.96 %

157.27 %

189.85 %

180.03 %

136.89 %

Allowance for credit losses on loans to total loans

0.71 %

0.80 %

0.81 %

0.82 %

0.77 %

Nonperforming Assets:

Commercial real estate

$—

$4,276

$7,605

$10,053

$18,259

Commercial & industrial

1,010

9,711

1,140

515

616

Total commercial

1,010

13,987

8,745

10,568

18,875

Residential real estate

11,129

10,614

11,102

10,767

10,517

Home equity

1,877

1,507

1,779

1,972

1,750

Other consumer

—

—

—

—

—

Total consumer

1,877

1,507

1,779

1,972

1,750

Total nonaccrual loans

14,016

26,108

21,626

23,307

31,142

Other real estate owned

—

—

—

—

—

Total nonperforming assets

$14,016

$26,108

$21,626

$23,307

$31,142

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

Commercial real estate

$—

$—

$—

$—

$10,476

Commercial & industrial

8

1,799

1,146

900

3

Total commercial

8

1,799

1,146

900

10,479

Residential real estate

6,470

9,772

6,439

7,741

6,947

Home equity

1,583

2,430

2,578

2,947

2,800

Other consumer

51

34

32

394

75

Total consumer

1,634

2,464

2,610

3,341

2,875

Total past due loans

$8,112

$14,035

$10,195

$11,982

$20,301

Accruing loans 90 days or more past due

$—

$—

$—

$—

$—

Nonaccrual loans included in past due loans

$5,925

$8,186

$7,354

$6,447

$18,119

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

For the Three Months Ended

For the Nine Months Ended

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Sep 30,
2025

Sep 30,
2024

Nonaccrual Loan Activity:

Balance at beginning of period

$26,108

$21,626

$23,307

$31,142

$30,479

$23,307

$44,618

Additions to nonaccrual status

1,068

10,454

2,142

5,417

1,880

13,664

2,867

Loans returned to accruing status

—

(1,493)

(4)

(9)

(268)

(1,497)

(14,401)

Loans charged-off

(11,459)

(667)

(2,522)

(2,231)

(59)

(14,648)

(182)

Loans transferred to other real estate owned

—

—

—

—

—

—

—

Payments, payoffs, and other changes

(1,701)

(3,812)

(1,297)

(11,012)

(890)

(6,810)

(1,760)

Balance at end of period

$14,016

$26,108

$21,626

$23,307

$31,142

$14,016

$31,142

Allowance for Credit Losses on Loans:

Balance at beginning of period

$41,059

$41,056

$41,960

$42,630

$42,378

$41,960

$41,057

Provision for credit losses on loans (1)

6,950

650

1,400

1,200

300

9,000

1,700

Charge-offs

(11,459)

(667)

(2,522)

(2,231)

(59)

(14,648)

(182)

Recoveries

26

20

218

361

11

264

55

Balance at end of period

$36,576

$41,059

$41,056

$41,960

$42,630

$36,576

$42,630

Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of period

$1,190

$1,240

$1,440

$1,640

$1,740

$1,440

$1,940

Provision for credit losses on unfunded commitments (1)

(150)

(50)

(200)

(200)

(100)

(400)

(300)

Balance at end of period (2)

$1,040

$1,190

$1,240

$1,440

$1,640

$1,040

$1,640

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

(2)   Included in other liabilities in the Consolidated Balance Sheets.

For the Three Months Ended

For the Nine Months Ended

Sep 30,
2025

Jun 30,
2025

Mar 31,
2025

Dec 31,
2024

Sep 30,
2024

Sep 30,
2025

Sep 30,
2024

Provision for Credit Losses:

Provision for credit losses on loans

$6,950

$650

$1,400

$1,200

$300

$9,000

$1,700

Provision for credit losses on unfunded commitments

(150)

(50)

(200)

(200)

(100)

(400)

(300)

Provision for credit losses

$6,800

$600

$1,200

$1,000

$200

$8,600

$1,400

Net Loan Charge-Offs (Recoveries):

Commercial real estate

$2,991

$274

$2,250

$1,961

$—

$5,515

$—

Commercial & industrial

8,355

307

3

181

2

8,665

5

Total commercial

11,346

581

2,253

2,142

2

14,180

5

Residential real estate

—

—

—

(160)

—

—

—

Home equity

(15)

(1)

(1)

(189)

(1)

(17)

(8)

Other consumer

102

67

52

77

47

221

130

Total consumer

87

66

51

(112)

46

204

122

Total

$11,433

$647

$2,304

$1,870

$48

$14,384

$127

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.

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Three Months Ended

September 30, 2025

June 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

$137,021

$1,475

4.27 %

$92,692

$1,029

4.45 %

$44,329

$446

(0.18 %)

Mortgage loans held for sale

31,957

542

6.73

27,466

442

6.45

4,491

100

0.28

Taxable debt securities

1,075,119

9,372

3.46

1,067,394

9,230

3.47

7,725

142

(0.01)

Nontaxable debt securities

650

8

4.88

650

8

4.94

—

—

(0.06)

Total securities

1,075,769

9,380

3.46

1,068,044

9,238

3.47

7,725

142

(0.01)

FHLB stock

42,549

764

7.12

41,484

792

7.66

1,065

(28)

(0.54)

Commercial real estate

2,201,220

32,293

5.82

2,161,987

31,225

5.79

39,233

1,068

0.03

Commercial & industrial

553,867

8,203

5.88

550,550

7,967

5.80

3,317

236

0.08

Total commercial

2,755,087

40,496

5.83

2,712,537

39,192

5.80

42,550

1,304

0.03

Residential real estate

2,088,066

23,032

4.38

2,096,538

22,996

4.40

(8,472)

36

(0.02)

Home equity

303,480

5,270

6.89

298,645

5,167

6.94

4,835

103

(0.05)

Other

16,292

205

4.99

17,001

207

4.88

(709)

(2)

0.11

Total consumer

319,772

5,475

6.79

315,646

5,374

6.83

4,126

101

(0.04)

Total loans

5,162,925

69,003

5.30

5,124,721

67,562

5.29

38,204

1,441

0.01

Total interest-earning assets

6,450,221

81,164

4.99

6,354,407

79,063

4.99

95,814

2,101

—

Noninterest-earning assets

288,575

288,963

(388)

Total assets

$6,738,796

$6,643,370

$95,426

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits (in-market)

$685,422

$6,503

3.76 %

$664,290

$6,251

3.77 %

$21,132

$252

(0.01 %)

NOW accounts

669,493

390

0.23

670,878

341

0.20

(1,385)

49

0.03

Money market accounts

1,174,584

9,620

3.25

1,182,377

9,779

3.32

(7,793)

(159)

(0.07)

Savings accounts

719,229

3,624

2.00

664,590

3,080

1.86

54,639

544

0.14

Time deposits (in-market)

1,209,011

11,080

3.64

1,215,018

11,308

3.73

(6,007)

(228)

(0.09)

Interest-bearing in-market deposits

4,457,739

31,217

2.78

4,397,153

30,759

2.81

60,586

458

(0.03)

Wholesale brokered time deposits

539

6

4.42

8,485

105

4.96

(7,946)

(99)

(0.54)

Total interest-bearing deposits

4,458,278

31,223

2.78

4,405,638

30,864

2.81

52,640

359

(0.03)

FHLB advances

942,685

10,542

4.44

934,066

10,451

4.49

8,619

91

(0.05)

Junior subordinated debentures

22,681

347

6.07

22,681

346

6.12

—

1

(0.05)

Total interest-bearing liabilities

5,423,644

42,112

3.08

5,362,385

41,661

3.12

61,259

451

(0.04)

Noninterest-bearing demand deposits

648,268

615,926

32,342

Other liabilities

138,569

141,350

(2,781)

Shareholders' equity

528,315

523,709

4,606

Total liabilities and shareholders' equity

$6,738,796

$6,643,370

$95,426

Net interest income (FTE)

$39,052

$37,402

$1,650

Interest rate spread

1.91 %

1.87 %

0.04 %

Net interest margin

2.40 %

2.36 %

0.04 %

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

For the Three Months Ended

Sep 30, 2025

Jun 30, 2025

Change

Commercial loans

$218

$219

($1)

Nontaxable debt securities

1

—

1

Total

$219

$219

$—

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Nine Months Ended

September 30, 2025

September 30, 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

$138,301

$4,497

4.35 %

$135,428

$5,667

5.59 %

$2,873

($1,170)

(1.24 %)

Mortgage loans for sale

54,624

1,942

4.75

20,042

1,013

6.75

34,582

929

(2.00)

Taxable debt securities

1,061,852

27,429

3.45

1,128,507

20,834

2.47

(66,655)

6,595

0.98

Nontaxable debt securities

650

24

4.94

28

1

4.77

622

23

0.17

Total securities

1,062,502

27,453

3.45

1,128,535

20,835

2.47

(66,033)

6,618

0.98

FHLB stock

42,504

2,578

8.11

58,890

3,459

7.85

(16,386)

(881)

0.26

Commercial real estate

2,167,400

93,873

5.79

2,150,686

103,445

6.42

16,714

(9,572)

(0.63)

Commercial & industrial

547,558

24,044

5.87

595,564

29,096

6.53

(48,006)

(5,052)

(0.66)

Total commercial

2,714,958

117,917

5.81

2,746,250

132,541

6.45

(31,292)

(14,624)

(0.64)

Residential real estate

2,101,567

69,382

4.41

2,568,457

79,572

4.14

(466,890)

(10,190)

0.27

Home equity

299,645

15,499

6.92

305,364

15,769

6.90

(5,719)

(270)

0.02

Other

16,876

628

4.98

18,527

666

4.80

(1,651)

(38)

0.18

Total consumer

316,521

16,127

6.81

323,891

16,435

6.78

(7,370)

(308)

0.03

Total loans

5,133,046

203,426

5.30

5,638,598

228,548

5.41

(505,552)

(25,122)

(0.11)

Total interest-earning assets

6,430,977

239,896

4.99

6,981,493

259,522

4.97

(550,516)

(19,626)

0.02

Noninterest-earning assets

284,668

256,527

28,141

Total assets

$6,715,645

$7,238,020

($522,375)

Liabilities and Shareholders' Equity:

Interest-bearing demand deposits (in-market)

$659,609

$18,630

3.78 %

$533,163

$18,058

4.52 %

$126,446

$572

(0.74 %)

NOW accounts

673,135

1,075

0.21

709,115

1,168

0.22

(35,980)

(93)

(0.01)

Money market accounts

1,196,124

29,426

3.29

1,116,879

32,571

3.90

79,245

(3,145)

(0.61)

Savings accounts

649,841

8,555

1.76

485,665

2,540

0.70

164,176

6,015

1.06

Time deposits (in-market)

1,209,618

33,692

3.72

1,165,370

35,756

4.10

44,248

(2,064)

(0.38)

Interest-bearing in-market deposits

4,388,327

91,378

2.78

4,010,192

90,093

3.00

378,135

1,285

(0.22)

Wholesale brokered time deposits

65,115

2,457

5.04

558,015

21,870

5.24

(492,900)

(19,413)

(0.20)

Total interest-bearing deposits

4,453,442

93,835

2.82

4,568,207