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):
— The net interest margin was 2.56%, up by 16 basis points. Full-year 2025 net interest margin was 2.40%, up by 53 basis points from 2024.
— The provision for credit losses normalized to $600 thousand, and asset quality metrics improved.
— Wealth management revenues increased by 5%.
— Mortgage loan originations and sales increased 21% and 25%, respectively.
— Loan balances were stable at $5.1 billion.
— In-market deposits (total deposits less wholesale brokered deposits) were up by 1% from September 30, 2025 and 9% from December 31, 2024.
— Capital ratios remained strong, with a total risk-based capital ratio of 12.95% at December 31, 2025.
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.
— Commercial loan prepayment fee income was $516 thousand (a 3 basis point benefit to net interest margin).
— Average interest-earning assets decreased by $93 million, due to decreases in loans and securities. The yield was 4.93%, down by 6 basis points.
— Average interest-bearing liabilities decreased by $104 million, due to decreases in wholesale funding balances, partially offset by growth in in-market deposits. The rate was 2.84%, down by 24 basis points.
Noninterest Income
Noninterest income was $18.5 million, up by $867 thousand, or 5%.
— Wealth management revenues amounted to $10.9 million, up by $479 thousand, or 5%. Average assets under administration (“AUA”) increased by 4%.
— Mortgage banking revenues totaled $3.3 million, down by $251 thousand, or 7%, as increases in gains on sales were offset by changes in fair value on mortgage loans held for sale and forward loan commitments. The change in fair value reflects seasonality in the loan pipeline. Mortgage banking revenues increased by 14% compared to the fourth quarter of 2024.
— Loan related derivative income totaled $1.1 million, up by $810 thousand.
Noninterest Expense
Noninterest expense totaled $38.0 million, up by $2.3 million, or 6%.
— Salaries and employee benefits expense amounted to $23.6 million, up by $973 thousand, or 4%, reflecting higher levels of performance- and volume-based compensation, as well as increased staffing.
— Other noninterest expenses totaled $3.9 million, up by $1.3 million, or 51%, largely due to a $1.0 million contribution made by Washington Trust to its charitable foundation.
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.
— Commercial loans increased by $23 million, or 1%.
— Residential real estate loans decreased by $23 million, or 1%.
— Consumer loans increased by $12 million, or 4%.
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.
— In the fourth quarter, the Corporation repurchased 20,855 shares of its common stock, at an average price of $27.03 and a total cost of $564 thousand, under its stock repurchase program.
— The Board of Directors declared a quarterly dividend of 56 cents per share for fourth quarter. The dividend was paid on January 14, 2026 to shareholders of record on January 2, 2026.
— Capital levels exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.95%, compared to 12.90%.
— Book value per share was $28.56, compared to $27.98.
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:
— changes in general business and economic conditions (including the impact of tariffs, inflation, potential U.S government shutdowns, and concerns about liquidity) on a national basis and in the local markets in which we operate;
— interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;
— changes in customer behavior due to political, business and economic conditions;
— changes in loan demand and collectability;
— the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments;
— ongoing volatility in national and international financial markets;
— reductions in the market value or outflows of wealth management AUA;
— decreases in the value of securities and other assets;
— increases in defaults and charge-off rates;
— changes in the size and nature of our competition;
— changes in, and evolving interpretations of, existing and future laws, rules and regulations;
— changes in accounting principles, policies and guidelines;
— operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest and future pandemics;
— regulatory, litigation and reputational risks; and
— changes in the assumptions used in making such forward-looking statements.
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. Dec 31, 2025 vs.
Sep 30, 2025 Dec 31, 2024
Dec 31, Sep 30, Dec 31,
$ %
$ %
2025 2025 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 37 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 - 4,788 (4,788) (100.0)
market
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 63,909 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 22,681 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 1,223 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 Q4 2025 vs. Q4
2025 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 64 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 8 7 8 1 14.3 -
Dividends on Federal Home Loan Bank stock 792 764 1,312 28 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 54 4.6 (38) (3.0)
Service charges on deposit accounts 843 841 794 2 0.2 49 6.2
Loan related derivative income 1,081 271 8 810 298.9 1,073 13,412.5
Income from bank-owned life insurance 886 868 779 18 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) 64 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 $0.56 $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 30 8 22 275.0
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 $2.24
$- - %
Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)
Dec 31, Sep 30, Dec 31, Dec 31, 2025 Dec 31, 2025
vs. vs.
2025 2025 2024 Sep 30, 2025 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 19,562 19,562 -shs - % -shs - %
Shares outstanding at end of period 19,035 19,050 19,274 (15) (0.1 %) (239)
shs 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) (810)
bps bps
Q4 2025 For the Year
Ended YTD 2025
Q4 2025 Q3 2025 Q4 2024 vs. vs. Dec 31, Dec 31, vs.
Q3 2025 Q4 2024 2025 2024 2024
(bps) (bps) (bps)
Performance Ratios
(4)
:
Net interest margin (5) 2.56 % 2.40 % 1.95 % 16 61 2.40 % 1.87 % 53
Return on average assets (6) 0.95 % 0.64 % (3.45 %) 31 440 0.78 % (0.39 %) 117
Adjusted return on average assets (non-GAAP) (1) 0.95 % 0.64 % 0.59 % 31 36 0.77 % 0.57 % 20
Return on average tangible assets (non-GAAP) (1) 0.96 % 0.65 % 0.60 % 31 36 0.78 % 0.57 % 21
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 %) 80 14,040 66.6 % 136.2 % (6,960)
Adjusted efficiency ratio (non-GAAP) (1) 64.1 % 63.3 % 70.0 % 80 (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 Q4 2025 vs. Q4
2025 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 66 139 37 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 % 91 % 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 78 % 71 % 88 %
mortgage loan originations
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 % 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) 72 (1) 73 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. Dec 31, 2025 vs.
Sep 30, 2025
Dec 31, 2024
Dec 31, Sep 30, Dec 31,
$ %
$ %
2025 2025 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 Balance % of
Total Total
$ %
Commercial Real Estate Portfolio Segmentation:
Multi-family $667,388 31 % $567,243 26 % $100,145 17.7 %
Retail 436,961 20 433,146 20 3,815 0.9
Industrial and warehouse 380,403 17 358,425 17 21,978 6.1
Office 237,706 11 289,853 13 (52,147) (18.0)
Hospitality 230,549 11 213,585 10 16,964 7.9
Healthcare Facility 156,871 7 205,858 10 (48,987) (23.8)
Mixed-use 26,440 1 29,023 1 (2,583) (8.9)
Other 47,667 2 57,371 3 (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 10 63,992 12 (6,879) (10.7)
Transportation and warehousing 55,315 10 55,784 10 (469) (0.8)
Educational services 54,245 10 47,092 9 7,153 15.2
Retail trade 48,289 9 41,132 8 7,157 17.4
Accommodation and food services 26,431 5 12,368 2 14,063 113.7
Manufacturing 23,714 4 32,140 6 (8,426) (26.2)
Finance and insurance 22,727 4 26,557 5 (3,830) (14.4)
Arts, entertainment, and recreation 22,043 4 19,861 4 2,182 11.0
Information 21,843 4 22,265 4 (422) (1.9)
Professional, scientific, and technical services 12,490 2 10,845 2 1,645 15.2
Public administration 1,448 2,186 (738) (33.8)
Other 68,363 11 81,705 15 (13,342) (16.3)
Total commercial & industrial loans $564,082 100 % $542,474 100 % $21,608 4.0 %
Weighted Average
Asset Quality
Balance Average Loan to Debt Pass Special Classified Nonaccrual
(2) (3) Value Mention (included
in
Loan Service Classified)
Coverage
Size (4)
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. Dec 31, 2025 vs.
Sep 30, 2025 Dec 31, 2024
Dec 31, Sep 30, Dec 31,
$ %
$ %
2025 2025 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, Dec 31, Dec 31, 2025 vs.
2025 2024 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, Sep 30, Dec 31, Sep 30, Dec 31,
2025 2025 2024 2025 2024
(bps) (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 % 6 (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 % 2 (9)
Dec 31, 2025 vs. Dec 31, 2025 vs.
Sep 30, 2025 Dec 31, 2024
Dec 31, Sep 30, Dec 31,
$ %
$ %
2025 2025 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 7 8 900 (1) (12.5) (893) (99.2)
Total commercial 655 8 900 647 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 24 1.5 (1,340) (45.5)
Other consumer 26 51 394 (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 For the Year Ended Dec
Ended 31,
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2025 2025 2024 2025 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 26 361 511 416
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 Q4 2025 vs. Q4
2025 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) 14 93.3 188 99.5
Other consumer 70 102 77 (32) (31.4) (7) (9.1)
Total consumer 69 87 (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 84 40.6
Total consumer 273 10 263 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 Interest Yield/ Average Interest Yield/ Average Interest Yield/
Balance Balance Balance
Rate Rate Rate
Assets:
Cash, federal funds sold, and short-term $131,215 $1,291 3.90 % $137,021 $1,475 4.27 % ($5,806) ($184) (0.37 %)
investments
Mortgage loans held for sale 38,696 606 6.21 31,957 542 6.73 6,739 64 (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 8 4.88 650 8 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) 28 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 89 (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 11 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- $734,617 $6,375 3.44 % $685,422 $6,503 3.76 % $49,195 ($128) (0.32 %)
market)
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 6 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, Sep 30,
2025 2025 Change
Commercial loans $214 $218 ($4)
Nontaxable debt securities 1 (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 Interest Yield/ Average Interest Yield/ Average Interest Yield/
Balance Balance Balance
Rate Rate Rate
Assets:
Cash, federal funds sold and short-term $136,515 $5,788 4.24 % $129,119 $6,977 5.40 % $7,396 ($1,189) (1.16 %)
investments
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 32 4.92 185 9 4.86 465 23 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- $678,515 $25,005 3.69 % $550,652 $24,156 4.39 % $127,863 $849 (0.70 %)
market)
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, Dec 31,
2025 2024 Change
Commercial loans $858 $916 ($58)
Nontaxable debt securities 2 1 1
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, $15,974 $10,846 ($60,776) $5,128 47.3 % $76,750 126.3 %
as reported
Less: total adjustments available to common - (71,221) 71,221 100.0
shareholders, after-tax
Adjusted net income available to common $15,974 $10,846 $10,445 $5,128 47.3 % $5,529 52.9 %
shareholders (non-GAAP)
(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 Q4 2025 vs. Q4
2025 2024
Adjusted Diluted Earnings per Common Share:
Diluted earnings (loss) per common share, as $0.83 $0.56 ($3.48) $0.27 48.2 % $4.31 123.9 %
reported (1)
Less: impact of total adjustments - (4.07) 4.07 100.0
Adjusted diluted earnings per common share $0.83 $0.56 $0.59 $0.27 48.2 % $0.24 40.7 %
(non-GAAP) (2)
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 Q4 2025 vs. Q4
2025 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 63,909 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 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 Q4 2025 vs. Q4
2025 2024
Adjusted Return on Average Equity:
Net income (loss) available to common $15,974 $10,846 ($60,776) $5,128 47.3 % $76,750 126.3 %
shareholders, as reported
Less: total adjustments, after-tax - (71,221) 71,221 100.0
Adjusted net income available to common $15,974 $10,846 $10,445 $5,128 47.3 % $5,529 52.9 %
shareholders (non-GAAP)
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 11.70 % 8.14 % 8.29 % 356 bps 341 bps
(non-GAAP) (2)
Return on Average Tangible Equity:
Adjusted net income available to common $15,974 $10,846 $10,445 $5,128 47.3 % $5,529 52.9 %
shareholders (non-GAAP)
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 63,909 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 13.39 % 9.34 % 9.57 % 405 bps 382 bps
(non-GAAP) (3)
(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 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, Sep 30, Dec 31, Dec 31, 2025 vs. Dec 31, 2025 vs.
2025 2025 2024 Sep 30, 2025 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 63,909 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 63,909 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
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SOURCE Washington Trust Bancorp, Inc.
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