Washington Trust Reports Fourth Quarter and Full-Year 2024 Results

, /PRNewswire/ -- Washington Trust Bancorp, Inc. (the "Corporation") (Nasdaq: WASH), parent company of The Washington Trust Company (the "Bank"), today reported a fourth quarter 2024 net loss of $60.8 million, or a $3.46 loss per diluted share. Excluding the impact of the balance sheet repositioning sale transactions described below, adjusted net income (non-GAAP) for the fourth quarter totaled $10.4 million, or $0.59 per diluted share, compared to net income of $11.0 million, or $0.64 per diluted share, for the third quarter of 2024. As previously announced, on December 16, 2024, the Corporation completed an underwritten public offering of 2,198,528 shares of its common stock at a public offering price of $34.00 per share. The net proceeds from the offering were approximately $70.5 million. On December 20, 2024, the Corporation announced the execution of balance sheet repositioning transactions to support continued organic growth and capital generation. The Bank sold available for sale debt securities with an amortized cost balance of $409 million (fair value of $378 million) and a weighted average yield of 2.65% and reinvested $378 million into purchases of available for sale debt securities with a weighted average yield of 5.30%. The sale of debt securities resulted in a net pre-tax realized loss of $31.0 million (after-tax of $23.5 million) that was recognized in the fourth quarter of 2024. Pursuant to the terms of a sales agreement effective December 30, 2024, the Bank committed to sell residential mortgage loans with an amortized cost balance of $345 million and a weighted average rate of approximately 3.02%. These loans were reclassified to held for sale and written down to a fair value of $282 million, resulting in a net pre-tax loss of $62.9 million (after-tax of $47.7 million) that was recognized in the fourth quarter of 2024. The sale of these loans was completed on January 24, 2025. The net proceeds received from the equity offering were used, and the proceeds from the loan sale will be used, to pay down wholesale funding balances. "Washington Trust's 2024 results reflect the strategic actions we took in December to reposition our balance sheet," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. "Though the sales resulted in a loss recognized in the fourth quarter, the equity offering and repositioning will favorably impact future revenues and provide additional capacity for growth and investment. This strategy has further strengthened our financial foundation, allowing us to focus on providing enhanced value for our shareholders, as well as the customers and communities we serve." For the full-year ended 2024, the Corporation reported a net loss of $28.1 million, or a loss per diluted share of $1.63, compared to net income of $48.2 million, or earnings per diluted share of $2.82, reported for the prior year. In addition to the losses recognized on the sale transactions mentioned above, noninterest income included the receipt of a $2.1 million ($1.6 million after-tax) litigation settlement in the first quarter of 2024 and a gain of $988 thousand ($739 thousand after-tax) on the sale of a bank-owned operations facility in the second quarter of 2024. Additionally, in 2023, a state legislative tax change resulted in a reduction in income tax expense of $3.3 million. Excluding these items, full-year 2024 adjusted net income (non-GAAP) was $40.9 million, or $2.37 per diluted share, compared to adjusted net income (non-GAAP) of $44.9 million, or $2.63 per diluted share, reported for the prior year. Other selected financial highlights for the fourth quarter and full-year 2024 include: The net interest margin was 1.95% in the fourth quarter, up by 10 basis points from the 1.85% reported in the preceding quarter. Full-year net interest margin for 2024 was 1.87%, down by 18 basis points from the 2.05% reported in the prior year. A provision for credit losses of $1.0 million was recognized for the fourth quarter, up by $800 thousand from the third quarter. The provision for credit losses in 2024 totaled $2.4 million, compared to $3.2 million recognized in the prior year. Wealth management revenues in the fourth quarter increased by 1% from the preceding quarter. End of period assets under administration ("AUA") totaled $7.1 billion, up by 0.4% from September 30, 2024 and up by 7% from December 31, 2023. Mortgage banking revenues in the fourth quarter decreased by 1% from the preceding quarter. Full-year 2024 mortgage banking revenues were $11.0 million, up by 65% from the same period in the prior year. Total loans amounted to $5.1 billion, down by 7% from September 30, 2024 and down by $510 million, or 9%, from December 31, 2023, largely due to the reclassification of residential mortgage loans to held for sale in connection with the balance sheet repositioning transactions. In-market deposits (total deposits less wholesale brokered deposits) amounted to $4.8 billion, up by 1% from September 30, 2024 and up by 3% from December 31, 2023. Net Interest IncomeNet interest income was $32.9 million for the fourth quarter of 2024, up by $674 thousand, or 2%, from the third quarter of 2024. The net interest margin was 1.95% for the fourth quarter, an increase of 10 basis points from the preceding quarter. This improvement reflected the partial impact on the quarter of the December balance sheet repositioning transactions, and the net effect of lower market rates on deposits, wholesale funds, and variable rate loans. Linked quarter changes included: Average interest-earning assets decreased by $235 million, reflecting a decline of $119 million in deposits at correspondent banks, as well as decreases in loans and securities. The yield on interest-earning assets for the fourth quarter was 4.83%, down by 16 basis points from the preceding quarter. Average interest-bearing liabilities decreased by $251 million, as in-market deposits increased by $96 million while wholesale funding balances decreased by $347 million. The cost of interest-bearing liabilities for the fourth quarter of 2024 was 3.41%, down by 29 basis points from the preceding quarter. Noninterest IncomeNoninterest income was a loss of $77.9 million for the fourth quarter of 2024, compared to income of $16.3 million in the third quarter of 2024. Included in noninterest income in the fourth quarter of 2024 was a pre-tax loss of $93.9 million recognized on the aforementioned balance sheet repositioning sale transactions. Adjusted noninterest income (non-GAAP) was $16.0 million, down by $229 thousand, or 1%, from the preceding quarter. Our two largest sources of noninterest income are discussed below: Wealth management revenues amounted to $10.0 million in the fourth quarter of 2024, up by $60 thousand, or 1%, from the preceding quarter. This included an increase in asset-based revenues of $140 thousand, or 1%, which was partially offset by a decrease in transaction-based revenues of $80 thousand, or 37%. The end of period AUA balance at December 31, 2024 amounted to $7.1 billion, up by $25 million, or 0.4%, from September 30, 2024. Mortgage banking revenues totaled $2.8 million for the fourth quarter of 2024, down by $18 thousand, or 1%, from the preceding quarter. Loans sold amounted to $113.1 million in the fourth quarter of 2024, down by $7.2 million, or 6%, from the third quarter of 2024. In the fourth quarter of 2024, 88% of residential real estate loan originations were originated for sale, compared to 81% in the preceding quarter. Noninterest ExpenseNoninterest expense totaled $34.3 million for the fourth quarter of 2024, down by $212 thousand, or 1%, from the third quarter of 2024. Salaries and employee benefits expense, our largest component of noninterest expense, amounted to $21.9 million, up by $525 thousand, or 2%, from the preceding quarter, largely reflecting adjustments to performance-based compensation accruals. The linked quarter increase in salaries and employee benefits expense was more than offset by a timing-related decline in advertising and promotion expense and other modest changes across a variety of expense categories. Income TaxFor the fourth quarter of 2024, an income tax benefit of $19.5 million was recognized, reflecting an effective tax rate of 24.2%. Excluding the impact of the balance sheet repositioning sale transactions, adjusted income tax expense (non-GAAP) was $3.2 million, reflecting an adjusted effective tax rate (non-GAAP) of 23.7%, compared to income tax expense of $2.8 million, reflecting an effective tax rate of 20.6% in the preceding quarter. 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 SecuritiesThe securities portfolio totaled $916 million at December 31, 2024, down by $57 million, or 6%, from September 30, 2024. The linked quarter included the balance sheet repositioning securities transactions mentioned above and reflected a temporary decrease in the fair value of available for sale securities, as well as routine pay-downs on mortgage-backed debt securities. The securities portfolio represented 13% of total assets at December 31, 2024, compared to 14% of total assets at September 30, 2024. LoansTotal loans amounted to $5.1 billion at December 31, 2024, down by $377 million, or 7%, from the end of the preceding quarter. These changes included: Residential real estate loans decreased by $403 million, or 16%, from September 30, 2024, largely reflecting the reclassification of $345 million to held for sale. Commercial loans increased by $29 million, or 1%, from September 30, 2024. Consumer loans decreased by $2 million, or 1%, from September 30, 2024. Deposits and BorrowingsTotal deposits amounted to $5.1 billion at December 31, 2024, down by $56 million, or 1%, from the end of the preceding quarter. In-market deposits, which exclude wholesale brokered deposits, amounted to $4.8 billion at December 31, 2024, up by $26 million, or 1%, from September 30, 2024. As of December 31, 2024, in-market deposits were approximately 59% retail and 41% commercial. The average size of our in-market deposit accounts was approximately $37 thousand at December 31, 2024. Wholesale brokered deposits amounted to $298 million and were down by $82 million, or 22%, from September 30, 2024. FHLB advances totaled $1.1 billion at December 31, 2024, down by $175 million, or 13%, from September 30, 2024. The linked quarter decrease reflected the use of excess cash liquidity and the net proceeds from the equity offering to pay down wholesale funding balances. As of December 31, 2024, contingent liquidity amounted to $1.5 billion and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity. Asset QualityNonaccrual loans were $23.3 million, or 0.45% of total loans, at December 31, 2024, compared to $31.1 million, or 0.56% of total loans, at September 30, 2024. The composition of nonaccrual loans at December 31, 2024 was 45% commercial and 55% residential and consumer. The net decrease in nonaccrual loans in the fourth quarter was largely attributable the resolution of one commercial real estate loan totaling $10.5 million, partially offset by another commercial real estate loan totaling $3.3 million that was placed on nonaccrual status. Past due loans were $12.0 million, or 0.23% of total loans, at December 31, 2024, compared to $20.3 million, or 0.37% of total loans, at September 30, 2024. The composition of past due loans at December 31, 2024 was 8% commercial and 92% residential and consumer. The decrease in past due loans in the fourth quarter was largely due to the resolution of the commercial real estate loan noted above. The allowance for credit losses ("ACL") on loans amounted to $42.0 million, or 0.82% of total loans, at December 31, 2024, compared to $42.6 million, or 0.77% of total loans, at September 30, 2024. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, was $1.4 million at December 31, 2024, compared to $1.6 million at September 30, 2024. The provision for credit losses totaled $1.0 million in the fourth quarter of 2024, up by $800 thousand from the preceding quarter, reflecting specific reserve allocations on individually analyzed nonaccrual commercial loans, partially offset by the decline in residential mortgage loan balances described above and relatively stable to improving forecasted economic conditions. Net charge-offs amounted to $1.9 million in the fourth quarter of 2024, compared to $48 thousand in the preceding quarter. The charge-offs recognized in the fourth quarter were concentrated in commercial real estate office portfolio segment. Capital and DividendsTotal shareholders' equity was $499.7 million at December 31, 2024, down by $2.5 million, or 0.5%, from September 30, 2024. A net loss of $60.8 million, dividend declarations of $10.8 million, and a decrease of $2.0 million in the accumulated other comprehensive income ("AOCI") component of shareholders' equity were largely offset by $70.5 million of net capital raised from the equity offering. The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended December 31, 2024. The dividend was paid on January 15, 2025 to shareholders of record on January 2, 2025. Capital levels at December 31, 2024 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.47% at December 31, 2024, compared to 12.21% at September 30, 2024. Book value per share was $25.93 at December 31, 2024, compared to $29.44 at September 30, 2024. Conference CallWashington Trust will host a conference call to discuss its fourth quarter results, business highlights, and outlook on Thursday, January 30, 2025 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 731757. 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 473209. The audio replay will be available through February 13, 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 March 31, 2025. BackgroundWashington 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 StatementsThis 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 on a national basis and in the local markets in which we operate; changes in customer behavior due to political, business, and economic conditions, including inflation and concerns about liquidity; interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits; 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 legislation or regulation and 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, 2023, 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 MeasuresIn 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, which consists of adjusted noninterest income, 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) Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Assets: Cash and due from banks $109,902 $206,971 $103,877 $102,136 $86,824 Short-term investments 3,987 3,772 3,654 3,452 3,360 Mortgage loans held for sale, at fair value 21,708 20,864 26,116 25,462 20,077 Mortgage loans held for sale, at lower of cost or market 281,706 — — — — Available for sale debt securities, at fair value 916,305 973,266 951,828 970,060 1,000,380 Federal Home Loan Bank stock, at cost 49,817 57,439 66,166 55,512 51,893 Loans: Total loans 5,137,838 5,514,870 5,629,102 5,685,232 5,647,706 Less: allowance for credit losses on loans 41,960 42,630 42,378 41,905 41,057 Net loans 5,095,878 5,472,240 5,586,724 5,643,327 5,606,649 Premises and equipment, net 26,873 32,145 31,866 31,914 32,291 Operating lease right-of-use assets 26,943 27,612 28,387 29,216 29,364 Investment in bank-owned life insurance 106,777 105,998 105,228 104,475 103,736 Goodwill 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,885 3,089 3,295 3,503 3,711 Other assets 223,957 174,266 213,310 216,158 200,653 Total assets $6,930,647 $7,141,571 $7,184,360 $7,249,124 $7,202,847 Liabilities: Deposits: Noninterest-bearing deposits $661,776 $665,706 $645,661 $648,929 $693,746 Interest-bearing deposits 4,454,024 4,506,184 4,330,465 4,698,964 4,654,414 Total deposits 5,115,800 5,171,890 4,976,126 5,347,893 5,348,160 Federal Home Loan Bank advances 1,125,000 1,300,000 1,550,000 1,240,000 1,190,000 Junior subordinated debentures 22,681 22,681 22,681 22,681 22,681 Operating lease liabilities 29,578 30,237 31,012 31,837 32,027 Other liabilities 137,860 114,534 133,584 139,793 137,293 Total liabilities 6,430,919 6,639,342 6,713,403 6,782,204 6,730,161 Shareholders' Equity: Common stock 1,223 1,085 1,085 1,085 1,085 Paid-in capital 196,947 126,698 125,898 126,785 126,150 Retained earnings 434,014 505,654 504,350 503,175 501,917 Accumulated other comprehensive loss (119,171) (117,158) (146,326) (148,913) (141,153) Treasury stock, at cost (13,285) (14,050) (14,050) (15,212) (15,313) Total shareholders' equity 499,728 502,229 470,957 466,920 472,686 Total liabilities and shareholders' equity $6,930,647 $7,141,571 $7,184,360 $7,249,124 $7,202,847 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 Twelve Months Ended Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Dec 31,2024 Dec 31,2023 Interest income: Interest and fees on loans $71,432 $75,989 $76,240 $75,636 $74,236 $299,297 $270,330 Interest on mortgage loans held for sale 762 366 392 255 255 1,775 980 Taxable interest on debt securities 7,015 6,795 6,944 7,096 7,191 27,850 29,059 Nontaxable interest on debt securities 8 — — — — 8 — Dividends on Federal Home Loan Bank stock 1,312 1,262 1,124 1,073 982 4,771 3,315 Other interest income 1,310 3,174 1,297 1,196 1,282 6,977 4,975 Total interest and dividend income 81,839 87,586 85,997 85,256 83,946 340,678 308,659 Interest expense: Deposits 34,135 37,203 36,713 38,047 37,067 146,098 120,429 Federal Home Loan Bank advances 14,388 17,717 17,296 15,138 13,814 64,539 49,589 Junior subordinated debentures 380 404 403 406 411 1,593 1,543 Total interest expense 48,903 55,324 54,412 53,591 51,292 212,230 171,561 Net interest income 32,936 32,262 31,585 31,665 32,654 128,448 137,098 Provision for credit losses 1,000 200 500 700 1,200 2,400 3,200 Net interest income after provision for credit losses 31,936 32,062 31,085 30,965 31,454 126,048 133,898 Noninterest income: Wealth management revenues 10,049 9,989 9,678 9,338 8,881 39,054 35,540 Mortgage banking revenues 2,848 2,866 2,761 2,506 1,554 10,981 6,660 Card interchange fees 1,255 1,321 1,275 1,145 1,254 4,996 4,921 Service charges on deposit accounts 794 784 769 685 688 3,032 2,806 Loan related derivative income 8 126 49 284 112 467 1,390 Income from bank-owned life insurance 779 770 753 739 734 3,041 3,488 Realized losses on securities, net (31,047) — — — — (31,047) — Losses on sale of portfolio loans, net (62,888) — — — — (62,888) — Other income 310 416 1,375 2,466 83 4,567 1,335 Total noninterest (loss) income (77,892) 16,272 16,660 17,163 13,306 (27,797) 56,140 Noninterest expense: Salaries and employee benefits 21,875 21,350 21,260 21,775 18,464 86,260 82,458 Outsourced services 4,197 4,185 4,096 3,780 3,667 16,258 14,521 Net occupancy 2,428 2,399 2,397 2,561 2,396 9,785 9,636 Equipment 936 924 958 1,020 1,133 3,838 4,318 Legal, audit, and professional fees 845 836 741 706 959 3,128 3,891 FDIC deposit insurance costs 1,266 1,402 1,404 1,441 1,239 5,513 4,667 Advertising and promotion 560 857 661 548 938 2,626 2,562 Amortization of intangibles 204 206 208 208 208 826 843 Other expenses 1,981 2,345 2,185 2,324 3,583 8,835 10,661 Total noninterest expense 34,292 34,504 33,910 34,363 32,587 137,069 133,557 (Loss) income before income taxes (80,248) 13,830 13,835 13,765 12,173 (38,818) 56,481 Income tax (benefit) expense (19,457) 2,849 3,020 2,829 (774) (10,759) 8,305 Net (loss) income ($60,791) $10,981 $10,815 $10,936 $12,947 ($28,059) $48,176 Net (loss) income available to common shareholders ($60,776) $10,973 $10,807 $10,924 $12,931 ($28,038) $48,091 Weighted average common shares outstanding: Basic 17,452 17,058 17,052 17,033 17,029 17,149 17,033 Diluted 17,565 17,140 17,110 17,074 17,070 17,223 17,062 (Loss) earnings per common share: Basic ($3.48) $0.64 $0.63 $0.64 $0.76 ($1.63) $2.82 Diluted ($3.46) $0.64 $0.63 $0.64 $0.76 ($1.63) $2.82 Cash dividends declared per share $0.56 $0.56 $0.56 $0.56 $0.56 $2.24 $2.24 Washington Trust Bancorp, Inc. and Subsidiaries SELECTED FINANCIAL HIGHLIGHTS (Unaudited; Dollars and shares in thousands, except per share amounts) Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Share and Equity Related Data: Book value per share $25.93 $29.44 $27.61 $27.41 $27.75 Tangible book value per share - Non-GAAP (1) $22.46 $25.51 $23.67 $23.45 $23.78 Market value per share $31.35 $32.21 $27.41 $26.88 $32.38 Shares issued at end of period 19,562 17,363 17,363 17,363 17,363 Shares outstanding at end of period 19,274 17,058 17,058 17,033 17,031 Capital Ratios (2): Tier 1 risk-based capital 11.64 % 11.39 % 11.01 % 10.84 % 10.86 % Total risk-based capital 12.47 % 12.21 % 11.81 % 11.62 % 11.58 % Tier 1 leverage ratio 8.13 % 7.85 % 7.82 % 7.81 % 7.80 % Common equity tier 1 11.20 % 10.95 % 10.59 % 10.42 % 10.44 % Balance Sheet Ratios: Equity to assets 7.21 % 7.03 % 6.56 % 6.44 % 6.56 % Tangible equity to tangible assets - Non-GAAP (1) 6.31 % 6.15 % 5.67 % 5.56 % 5.68 % Loans to deposits (3) 105.5 % 106.2 % 112.8 % 106.0 % 105.2 % For the Three Months Ended For the Twelve Months Ended Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Dec 31,2024 Dec 31,2023 Performance Ratios (4): Net interest margin (5) 1.95 % 1.85 % 1.83 % 1.84 % 1.88 % 1.87 % 2.05 % Return on average assets (6) (3.45 %) 0.60 % 0.60 % 0.61 % 0.71 % (0.39 %) 0.69 % Adjusted return on average assets - Non-GAAP (1) 0.59 % 0.60 % 0.56 % 0.52 % 0.53 % 0.57 % 0.64 % Return on average tangible assets - Non-GAAP (1) 0.60 % 0.61 % 0.57 % 0.53 % 0.54 % 0.57 % 0.65 % Return on average equity (7) (48.25 %) 8.99 % 9.43 % 9.33 % 11.77 % (5.84 %) 10.57 % Adjusted return on average equity - Non-GAAP (1) 8.29 % 8.99 % 8.79 % 7.99 % 8.81 % 8.52 % 9.85 % Return on average tangible equity - Non-GAAP (1) 9.57 % 10.43 % 10.29 % 9.32 % 10.43 % 9.91 % 11.59 % Efficiency ratio (8) (76.3 %) 71.1 % 70.3 % 70.4 % 70.9 % 136.2 % 69.1 % Adjusted efficiency ratio - Non-GAAP (1) 70.0 % 71.1 % 71.8 % 73.5 % 70.9 % 71.6 % 69.1 % (1) See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document. (2) Estimated for December 31, 2024 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 Twelve Months Ended Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Dec 31,2024 Dec 31,2023 Wealth Management Results Wealth Management Revenues: Asset-based revenues $9,910 $9,770 $9,239 $9,089 $8,634 $38,008 $34,308 Transaction-based revenues 139 219 439 249 247 1,046 1,232 Total wealth management revenues $10,049 $9,989 $9,678 $9,338 $8,881 $39,054 $35,540 Assets Under Administration (AUA): Balance at beginning of period $7,052,408 $6,803,491 $6,858,322 $6,588,406 $6,131,395 $6,588,406 $5,961,990 Net investment appreciation & income 57,706 372,027 108,529 364,244 503,209 902,506 894,990 Net client asset outflows (32,312) (123,110) (163,360) (94,328) (46,198) (413,110) (268,574) Balance at end of period $7,077,802 $7,052,408 $6,803,491 $6,858,322 $6,588,406 $7,077,802 $6,588,406 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 (1) $2,493 $2,492 $2,205 $1,586 $1,133 $8,776 $4,282 Changes in fair value, net (2) (317) (28) 20 324 (65) (1) 232 Loan servicing fee income, net (3) 672 402 536 596 486 2,206 2,146 Total mortgage banking revenues $2,848 $2,866 $2,761 $2,506 $1,554 $10,981 $6,660 Residential Mortgage Loan Originations: Originations for retention in portfolio (4) $15,155 $26,317 $26,520 $24,474 $39,827 $92,466 $459,892 Originations for sale to secondary market (5) 114,137 115,117 110,728 78,098 76,495 418,080 260,592 Total mortgage loan originations $129,292 $141,434 $137,248 $102,572 $116,322 $510,546 $720,484 Residential Mortgage Loans Sold: Sold with servicing rights retained $62,410 $17,881 $24,570 $24,057 $28,290 $128,918 $108,177 Sold with servicing rights released (5) 50,697 102,457 85,482 48,587 39,170 287,223 141,795 Total mortgage loans sold $113,107 $120,338 $110,052 $72,644 $67,460 $416,141 $249,972 (1) Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments. (2) Represents fair value changes on mortgage loans held for sale and forward loan commitments. (3) Represents loan servicing fee income, net of servicing right amortization and valuation adjustments. (4) Includes the full commitment amount of homeowner construction loans. (5) Includes brokered loans (loans originated for others). Washington Trust Bancorp, Inc. and Subsidiaries END OF PERIOD LOAN COMPOSITION (Unaudited; Dollars in thousands) Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Loans: Commercial real estate (1) $2,154,504 $2,102,091 $2,191,996 $2,158,518 $2,106,359 Commercial & industrial 542,474 566,279 558,075 613,376 605,072 Total commercial 2,696,978 2,668,370 2,750,071 2,771,894 2,711,431 Residential real estate (2) 2,126,171 2,529,397 2,558,533 2,585,524 2,604,478 Home equity 297,119 299,379 302,027 309,302 312,594 Other 17,570 17,724 18,471 18,512 19,203 Total consumer 314,689 317,103 320,498 327,814 331,797 Total loans $5,137,838 $5,514,870 $5,629,102 $5,685,232 $5,647,706 (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. December 31, 2024 December 31, 2023 Balance % of Total Balance % of Total Commercial Real Estate Loans by Property Location: Connecticut $839,079 39 % $815,975 39 % Massachusetts 663,026 31 645,736 31 Rhode Island 434,244 20 430,899 20 Subtotal 1,936,349 90 1,892,610 90 All other states 218,155 10 213,749 10 Total commercial real estate loans $2,154,504 100 % $2,106,359 100 % Residential Real Estate Loans by Property Location: Massachusetts $1,530,847 72 % $1,928,206 74 % Rhode Island 443,237 21 481,289 19 Connecticut 128,933 6 165,933 6 Subtotal 2,103,017 99 2,575,428 99 All other states 23,154 1 29,050 1 Total residential real estate loans $2,126,171 100 % $2,604,478 100 % Washington Trust Bancorp, Inc. and Subsidiaries END OF PERIOD LOAN COMPOSITION (Unaudited; Dollars in thousands) December 31, 2024 December 31, 2023 Balance % of Total Balance % of Total Commercial Real Estate Portfolio Segmentation: Multi-family $567,243 26 % $546,694 26 % Retail 433,146 20 434,913 21 Industrial and warehouse 358,425 17 307,987 15 Office 289,853 13 284,199 13 Hospitality 213,585 10 235,015 11 Healthcare Facility 205,858 10 175,490 8 Mixed-use 29,023 1 49,079 2 Other 57,371 3 72,982 4 Total commercial real estate loans $2,154,504 100 % $2,106,359 100 % Commercial & Industrial Portfolio Segmentation: Healthcare and social assistance $126,547 23 % $166,490 28 % Real estate rental and leasing 63,992 12 70,540 12 Transportation and warehousing 55,784 10 63,789 11 Educational services 47,092 9 41,968 7 Retail trade 41,132 8 43,746 7 Manufacturing 32,140 6 54,905 9 Finance and insurance 26,557 5 33,617 6 Information 22,265 4 22,674 4 Arts, entertainment, and recreation 19,861 4 22,249 4 Accommodation and food services 12,368 2 13,502 2 Professional, scientific, and technical services 10,845 2 7,998 1 Public administration 2,186 — 3,019 — Other 81,705 15 60,575 9 Total commercial & industrial loans $542,474 100 % $605,072 100 % 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 $112,478 $9,444 58 % 1.73x $106,211 $— $6,267 $— Class B 79,709 4,223 59 % 1.51x 69,656 — 10,053 10,053 Class C 14,684 2,098 56 % 1.57x 12,447 2,237 — — Medical Office 55,909 7,498 69 % 1.33x 55,909 — — — Lab Space 27,073 23,466 91 % 1.20x — 6,116 20,957 — Total office at December 31, 2024 (1) $289,853 $6,566 65 % 1.51x $244,223 $8,353 $37,277 $10,053 Total office at September 30, 2024 $296,545 $6,584 68 % 1.45x $248,050 $6,291 $42,204 $18,259 Total office linked quarter change ($6,692) ($18) (3 %) 0.06x ($3,827) $2,062 ($4,927) ($8,206) (1) Approximately 68% of the total commercial real estate office balance of $290 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 December 31, 2026. (2) Balance of commercial real estate office consists of 48 loans as of December 31, 2024. (3) Does not include $25.3 million of unfunded commitments as of December 31, 2024. (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 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Deposits: Noninterest-bearing demand deposits $661,776 $665,706 $645,661 $648,929 $693,746 Interest-bearing demand deposits (in-market) 592,904 596,319 532,316 536,923 504,959 NOW accounts 692,812 685,531 722,797 735,617 767,036 Money market accounts 1,154,745 1,146,426 1,086,088 1,111,510 1,096,959 Savings accounts 523,915 490,285 485,208 484,678 497,223 Time deposits (in-market) 1,192,110 1,207,626 1,164,839 1,156,516 1,134,187 In-market deposits 4,818,262 4,791,893 4,636,909 4,674,173 4,694,110 Wholesale brokered time deposits 297,538 379,997 339,217 673,720 654,050 Total deposits $5,115,800 $5,171,890 $4,976,126 $5,347,893 $5,348,160 December 31, 2024 December 31, 2023 Balance % of Total Deposits Balance % of Total Deposits Uninsured Deposits: Uninsured deposits (1) $1,363,689 27 % $1,260,672 24 % Less: affiliate deposits (2) 94,740 2 92,645 2 Uninsured deposits, excluding affiliate deposits 1,268,949 25 1,168,027 22 Less: fully-collateralized preferred deposits (3) 197,638 4 204,327 4 Uninsured deposits, after exclusions $1,071,311 21 % $963,700 18 % (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. Dec 31,2024 Dec 31,2023 Contingent Liquidity: Federal Home Loan Bank of Boston (1) $752,951 $1,086,607 Federal Reserve Bank of Boston 70,286 65,759 Available cash liquidity (2) 36,647 54,970 Unencumbered securities 597,771 680,857 Total $1,457,655 $1,888,193 Percentage of total contingent liquidity to uninsured deposits 106.9 % 149.8 % Percentage of total contingent liquidity to uninsured deposits, after exclusions 136.1 % 195.9 % (1) As of December 31, 2024, borrowing capacity at the FHLB declined as residential loan collateral was reclassified to held for sale as part of the balance sheet repositioning. On January 24, 2025, the sale of these loans was completed and the cash proceeds received will be used to pay down FHLB advances or other wholesale funding balances. (2) 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 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Asset Quality Ratios: Nonperforming assets to total assets 0.34 % 0.44 % 0.43 % 0.43 % 0.63 % Nonaccrual loans to total loans 0.45 % 0.56 % 0.54 % 0.54 % 0.79 % Total past due loans to total loans 0.23 % 0.37 % 0.21 % 0.18 % 0.20 % Allowance for credit losses on loans to nonaccrual loans 180.03 % 136.89 % 139.04 % 136.45 % 92.02 % Allowance for credit losses on loans to total loans 0.82 % 0.77 % 0.75 % 0.74 % 0.73 % Nonperforming Assets: Commercial real estate $10,053 $18,259 $18,390 $18,729 $32,827 Commercial & industrial 515 616 642 668 682 Total commercial 10,568 18,875 19,032 19,397 33,509 Residential real estate 10,767 10,517 9,744 9,722 9,626 Home equity 1,972 1,750 1,703 1,591 1,483 Other consumer — — — — — Total consumer 1,972 1,750 1,703 1,591 1,483 Total nonaccrual loans 23,307 31,142 30,479 30,710 44,618 Other real estate owned — — 683 683 683 Total nonperforming assets $23,307 $31,142 $31,162 $31,393 $45,301 Past Due Loans (30 days or more past due): Commercial real estate $— $10,476 $— $— $— Commercial & industrial 900 3 2 270 10 Total commercial 900 10,479 2 270 10 Residential real estate 7,741 6,947 8,534 6,858 8,116 Home equity 2,947 2,800 3,324 2,879 3,196 Other consumer 394 75 20 32 23 Total consumer 3,341 2,875 3,344 2,911 3,219 Total past due loans $11,982 $20,301 $11,880 $10,039 $11,345 Accruing loans 90 days or more past due $— $— $— $— $— Nonaccrual loans included in past due loans $6,447 $18,119 $8,409 $5,111 $6,877 Washington Trust Bancorp, Inc. and Subsidiaries CREDIT & ASSET QUALITY DATA (Unaudited; Dollars in thousands) For the Three Months Ended For the Twelve Months Ended Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Dec 31,2024 Dec 31,2023 Nonaccrual Loan Activity: Balance at beginning of period $31,142 $30,479 $30,710 $44,618 $33,652 $44,618 $12,846 Additions to nonaccrual status 5,417 1,880 556 431 12,018 8,284 40,276 Loans returned to accruing status (9) (268) (369) (13,764) — (14,410) (1,636) Loans charged-off (2,231) (59) (53) (70) (420) (2,413) (577) Loans transferred to other real estate owned — — — — — — (683) Payments, payoffs, and other changes (11,012) (890) (365) (505) (632) (12,772) (5,608) Balance at end of period $23,307 $31,142 $30,479 $30,710 $44,618 $23,307 $44,618 Allowance for Credit Losses on Loans: Balance at beginning of period $42,630 $42,378 $41,905 $41,057 $40,213 $41,057 $38,027 Provision for credit losses on loans (1) 1,200 300 500 900 1,250 2,900 3,550 Charge-offs (2,231) (59) (53) (70) (420) (2,413) (577) Recoveries 361 11 26 18 14 416 57 Balance at end of period $41,960 $42,630 $42,378 $41,905 $41,057 $41,960 $41,057 Allowance for Credit Losses on Unfunded Commitments: Balance at beginning of period $1,640 $1,740 $1,740 $1,940 $1,990 $1,940 $2,290 Provision for credit losses on unfunded commitments (1) (200) (100) — (200) (50) (500) (350) Balance at end of period (2) $1,440 $1,640 $1,740 $1,740 $1,940 $1,440 $1,940 (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 Twelve Months Ended Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Dec 31,2024 Dec 31,2023 Net Loan Charge-Offs (Recoveries): Commercial real estate $1,961 $— $— $— $373 $1,961 $373 Commercial & industrial 181 2 4 (1) 10 186 25 Total commercial 2,142 2 4 (1) 383 2,147 398 Residential real estate (160) — — — (3) (160) (3) Home equity (189) (1) (6) (1) — (197) (10) Other consumer 77 47 29 54 26 207 135 Total consumer (112) 46 23 53 26 10 125 Total $1,870 $48 $27 $52 $406 $1,997 $520 Net charge-offs to average loans - annualized 0.14 % — % — % — % 0.03 % 0.04 % 0.01 % 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 December 31, 2024 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 $110,327 $1,310 4.72 % $229,326 $3,174 5.51 % ($118,999) ($1,864) (0.79 %) Mortgage loans held for sale 75,731 762 4.00 21,899 366 6.65 53,832 396 (2.65) Taxable debt securities 1,087,076 7,016 2.57 1,109,699 6,794 2.44 (22,623) 222 0.13 Nontaxable debt securities 650 8 4.90 85 1 4.68 565 7 0.22 Total securities 1,087,726 7,024 2.57 1,109,784 6,795 2.44 (22,058) 229 0.13 FHLB stock 52,508 1,312 9.94 62,420 1,262 8.04 (9,912) 50 1.90 Commercial real estate 2,130,040 31,878 5.95 2,143,466 34,518 6.41 (13,426) (2,640) (0.46) Commercial & industrial 548,871 8,528 6.18 573,400 9,368 6.50 (24,529) (840) (0.32) Total commercial 2,678,911 40,406 6.00 2,716,866 43,886 6.43 (37,955) (3,480) (0.43) Residential real estate 2,446,905 25,681 4.18 2,542,939 26,568 4.16 (96,034) (887) 0.02 Home equity 295,879 5,366 7.21 299,227 5,554 7.38 (3,348) (188) (0.17) Other 17,534 217 4.92 18,097 215 4.73 (563) 2 0.19 Total consumer 313,413 5,583 7.09 317,324 5,769 7.23 (3,911) (186) (0.14) Total loans 5,439,229 71,670 5.24 5,577,129 76,223 5.44 (137,900) (4,553) (0.20) Total interest-earning assets 6,765,521 82,078 4.83 7,000,558 87,820 4.99 (235,037) (5,742) (0.16) Noninterest-earning assets 246,318 254,008 (7,690) Total assets $7,011,839 $7,254,566 ($242,727) Liabilities and Shareholders' Equity: Interest-bearing demand deposits (in-market) $602,737 $6,098 4.02 % $556,245 $6,288 4.50 % $46,492 ($190) (0.48 %) NOW accounts 680,763 404 0.24 693,724 405 0.23 (12,961) (1) 0.01 Money market accounts 1,160,962 10,139 3.47 1,122,649 11,221 3.98 38,313 (1,082) (0.51) Savings accounts 502,910 1,164 0.92 484,068 984 0.81 18,842 180 0.11 Time deposits (in-market) 1,193,733 11,840 3.95 1,188,452 12,234 4.10 5,281 (394) (0.15) Interest-bearing in-market deposits 4,141,105 29,645 2.85 4,045,138 31,132 3.06 95,967 (1,487) (0.21) Wholesale brokered time deposits 345,668 4,490 5.17 458,114 6,071 5.27 (112,446) (1,581) (0.10) Total interest-bearing deposits 4,486,773 34,135 3.03 4,503,252 37,203 3.29 (16,479) (3,068) (0.26) FHLB advances 1,188,804 14,388 4.81 1,423,804 17,717 4.95 (235,000) (3,329) (0.14) Junior subordinated debentures 22,681 380 6.67 22,681 404 7.09 — (24) (0.42) Total interest-bearing liabilities 5,698,258 48,903 3.41 5,949,737 55,324 3.70 (251,479) (6,421) (0.29) Noninterest-bearing demand deposits 668,138 673,113 (4,975) Other liabilities 144,344 146,045 (1,701) Shareholders' equity 501,099 485,654 15,445 Total liabilities and shareholders' equity $7,011,839 $7,254,549 ($242,710) Net interest income (FTE) $33,175 $32,496 $679 Interest rate spread 1.42 % 1.29 % 0.13 % Net interest margin 1.95 % 1.85 % 0.10 % Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: For the Three Months Ended Dec 31, 2024 Sep 30, 2024 Change Commercial loans $234 $234 $— Nontaxable debt securities 1 — 1 Total $235 $234 $1 Washington Trust Bancorp, Inc. and Subsidiaries CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) (Unaudited; Dollars in thousands) For the Twelve Months Ended December 31, 2024 December 31, 2023 Change Average Balance Interest Yield/ Rate AverageBalance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets: Cash, federal funds sold and short-term investments $129,119 $6,977 5.40 % $101,166 $4,975 4.92 % $27,953 $2,002 0.48 % Mortgage loans for sale 34,040 1,775 5.21 17,384 980 5.64 16,656 795 (0.43) Taxable debt securities 1,118,092 27,850 2.49 1,185,102 29,059 2.45 (67,010) (1,209) 0.04 Nontaxable debt securities 185 9 4.86 — — — 185 9 4.86 Total securities 1,118,277 27,859 2.49 1,185,102 29,059 2.45 (66,825) (1,200) 0.04 FHLB stock 57,286 4,771 8.33 46,880 3,315 7.07 10,406 1,456 1.26 Commercial real estate 2,145,496 135,323 6.31 1,970,580 118,887 6.03 174,916 16,436 0.28 Commercial & industrial 583,827 37,623 6.44 615,494 38,326 6.23 (31,667) (703) 0.21 Total commercial 2,729,323 172,946 6.34 2,586,074 157,213 6.08 143,249 15,733 0.26 Residential real estate 2,537,903 105,253 4.15 2,490,991 96,080 3.86 46,912 9,173 0.29 Home equity 302,980 21,136 6.98 297,396 17,129 5.76 5,584 4,007 1.22 Other 18,277 882 4.83 18,085 854 4.72 192 28 0.11 Total consumer 321,257 22,018 6.85 315,481 17,983 5.70 5,776 4,035 1.15 Total loans 5,588,483 300,217 5.37 5,392,546 271,276 5.03 195,937 28,941 0.34 Total interest-earning assets 6,927,205 341,599 4.93 6,743,078 309,605 4.59 184,127 31,994 0.34 Noninterest-earning assets 253,957 255,962 (2,005) Total assets $7,181,162 $6,999,040 $182,122 Liabilities and Shareholders' Equity: Interest-bearing demand deposits (in-market) $550,652 $24,156 4.39 % $415,725 $17,521 4.21 % $134,927 $6,635 0.18 % NOW accounts 701,989 1,572 0.22 766,492 1,594 0.21 (64,503) (22) 0.01 Money market accounts 1,127,960 42,710 3.79 1,191,036 37,145 3.12 (63,076) 5,565 0.67 Savings accounts 489,998 3,704 0.76 526,275 1,687 0.32 (36,277) 2,017 0.44 Time deposits (in-market) 1,172,500 47,595 4.06 1,010,629 33,609 3.33 161,871 13,986 0.73 Interest-bearing in-market deposits 4,043,099 119,737 2.96 3,910,157 91,556 2.34 132,942 28,181 0.62 Wholesale brokered demand deposits — — — 4,015 178 4.43 (4,015) (178) (4.43) Wholesale brokered time deposits 504,638 26,361 5.22 602,423 28,695 4.76 (97,785) (2,334) 0.46 Wholesale brokered deposits 504,638 26,361 5.22 606,438 28,873 4.76 (101,800) (2,512) 0.46 Total interest-bearing deposits 4,547,737 146,098 3.21 4,516,595 120,429 2.67 31,142 25,669 0.54 FHLB advances 1,312,391 64,539 4.92 1,056,726 49,589 4.69 255,665 14,950 0.23 Junior subordinated debentures 22,681 1,593 7.02 22,681 1,543 6.80 — 50 0.22 Total interest-bearing liabilities 5,882,809 212,230 3.61 5,596,002 171,561 3.07 286,807 40,669 0.54 Noninterest-bearing demand deposits 664,557 778,152 (113,595) Other liabilities 154,019 169,842 (15,823) Shareholders' equity 479,777 455,044 24,733 Total liabilities and shareholders' equity $7,181,162 $6,999,040 $182,122 Net interest income (FTE) $129,369 $138,044 ($8,675) Interest rate spread 1.32 % 1.52 % (0.20 %) Net interest margin 1.87 % 2.05 % (0.18 %) Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: For the Twelve Months Ended Dec 31, 2024 Dec 31, 2023 Change Commercial loans $916 $946 ($30) Nontaxable debt securities 1 — 1 Total $917 $946 ($29) Washington Trust Bancorp, Inc. and Subsidiaries SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (Unaudited; Dollars in thousands, except per share amounts) For the Three Months Ended For the Twelve Months Ended Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Dec 31,2024 Dec 31,2023 Noninterest (loss) income, as reported - GAAP ($77,892) $16,272 $16,660 $17,163 $13,306 ($27,797) $56,140 Less adjustments: Realized losses on securities, net (31,047) — — — — (31,047) — Losses on sale of portfolio loans, net (62,888) — — — — (62,888) — Net gain on sale of bank-owned operations facility — — 988 — — 988 — Litigation settlement income — — — 2,100 — 2,100 — Total adjustments, pre-tax (93,935) — 988 2,100 — (90,847) — Adjusted noninterest income - Non-GAAP $16,043 $16,272 $15,672 $15,063 $13,306 $63,050 $56,140 (Loss) income before income taxes ($80,248) $13,830 $13,835 $13,765 $12,173 ($38,818) $56,481 Less: adjustments, pre-tax (93,935) — 988 2,100 — (90,847) — Adjusted income before income taxes - Non-GAAP $13,687 $13,830 $12,847 $11,665 $12,173 $52,029 $56,481 Income tax (benefit) expense, as reported - GAAP ($19,457) $2,849 $3,020 $2,829 ($774) ($10,759) $8,305 Less: tax on adjustments (22,699) — 249 530 — (21,920) — Less: state legislative tax change (tax only adjustment) — — — — (3,253) — (3,253) Total adjustments, tax (22,699) — 249 530 (3,253) (21,920) (3,253) Adjusted income tax expense - Non-GAAP $3,242 $2,849 $2,771 $2,299 $2,479 $11,161 $11,558 Effective tax rate - GAAP 24.2 % 20.6 % 21.8 % 20.6 % (6.4 %) 27.7 % 14.7 % Less: impact of adjustments (0.5) — (0.2) (0.9) 26.8 (6.2) 5.8 Adjusted effective tax rate - Non-GAAP 23.7 % 20.6 % 21.6 % 19.7 % 20.4 % 21.5 % 20.5 % Net (loss) income, as reported - GAAP ($60,791) $10,981 $10,815 $10,936 $12,947 ($28,059) $48,176 Less: adjustments, after-tax (71,236) — 739 1,570 3,253 (68,927) 3,253 Adjusted net income - Non-GAAP $10,445 $10,981 $10,076 $9,366 $9,694 $40,868 $44,923 Net (loss) income available to common shareholders, as reported - GAAP ($60,776) $10,973 $10,807 $10,924 $12,931 ($28,038) $48,091 Less: adjustments, after-tax (71,221) — 738 1,568 3,248 (68,907) 3,249 Adjusted net income available to common shareholders - Non-GAAP $10,445 $10,973 $10,069 $9,356 $9,683 $40,869 $44,842 Diluted (loss) earnings per common share, as reported - GAAP ($3.46) $0.64 $0.63 $0.64 $0.76 ($1.63) $2.82 Less: impact of adjustments 4.05 — (0.04) (0.09) (0.19) 4.00 (0.19) Adjusted diluted earnings per common share - Non-GAAP $0.59 $0.64 $0.59 $0.55 $0.57 $2.37 $2.63 Efficiency ratio, as reported - GAAP (76.3 %) 71.1 % 70.3 % 70.4 % 70.9 % 136.2 % 69.1 % Less: impact of adjustments (146.3) — (1.5) (3.1) — 64.6 — Adjusted efficiency ratio - Non-GAAP 70.0 % 71.1 % 71.8 % 73.5 % 70.9 % 71.6 % 69.1 % 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 Three Months Ended For the Twelve Months Ended Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Dec 31,2024 Dec 31,2023 Net (loss) income, as reported - GAAP ($60,791) $10,981 $10,815 $10,936 $12,947 ($28,059) $48,176 Less: adjustments, after-tax (71,236) — 739 1,570 3,253 (68,927) 3,253 Adjusted net income - Non-GAAP 10,445 10,981 10,076 9,366 9,694 40,868 44,923 Total average assets, as reported - GAAP 7,011,839 7,254,566 7,227,478 7,231,835 7,191,575 7,181,162 6,999,040 Return on average assets - GAAP (3.45 %) 0.60 % 0.60 % 0.61 % 0.71 % (0.39 %) 0.69 % Adjusted return on average assets - Non-GAAP 0.59 % 0.60 % 0.56 % 0.52 % 0.53 % 0.57 % 0.64 % Adjusted net income - Non-GAAP $10,445 $10,981 $10,076 $9,366 $9,694 $40,868 $44,923 Total average assets, as reported - GAAP 7,011,839 7,254,566 7,227,478 7,231,835 7,191,575 7,181,162 6,999,040 Less average balances of: Goodwill 63,909 63,909 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,984 3,189 3,397 3,604 3,812 3,292 4,126 Total average tangible assets - GAAP 6,944,946 7,187,468 7,160,172 7,164,322 7,123,854 7,113,961 6,931,005 Return on average assets - GAAP (3.45 %) 0.60 % 0.60 % 0.61 % 0.71 % (0.39 %) 0.69 % Return on average tangible assets - Non-GAAP 0.60 % 0.61 % 0.57 % 0.53 % 0.54 % 0.57 % 0.65 % Net (loss) income available to common shareholders, as reported - GAAP ($60,776) $10,973 $10,807 $10,924 $12,931 ($28,038) $48,091 Less: adjustments, after-tax (71,221) — 738 1,568 3,248 (68,907) 3,249 Adjusted net income available to common shareholders - Non-GAAP 10,445 10,973 10,069 9,356 9,683 40,869 44,842 Total average equity, as reported - GAAP 501,099 485,654 460,959 471,096 436,059 479,777 455,044 Return on average equity - GAAP (48.25 %) 8.99 % 9.43 % 9.33 % 11.77 % (5.84 %) 10.57 % Adjusted return on average equity - Non-GAAP 8.29 % 8.99 % 8.79 % 7.99 % 8.81 % 8.52 % 9.85 % Adjusted net income available to common shareholders - Non-GAAP $10,445 $10,973 $10,069 $9,356 $9,683 $40,869 $44,842 Total average equity, as reported - GAAP 501,099 485,654 460,959 471,096 436,059 479,777 455,044 Less average balances of: Goodwill 63,909 63,909 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,984 3,189 3,397 3,604 3,812 3,292 4,126 Total average tangible equity - Non-GAAP 434,206 418,556 393,653 403,583 368,338 412,576 387,009 Return on average equity - GAAP (48.25 %) 8.99 % 9.43 % 9.33 % 11.77 % (5.84 %) 10.57 % Return on average tangible equity - Non-GAAP 9.57 % 10.43 % 10.29 % 9.32 % 10.43 % 9.91 % 11.59 % Washington Trust Bancorp, Inc. and Subsidiaries SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) (Unaudited; Dollars in thousands, except per share amounts) Dec 31,2024 Sep 30,2024 Jun 30,2024 Mar 31,2024 Dec 31,2023 Total shareholders' equity, as reported - GAAP $499,728 $502,229 $470,957 $466,920 $472,686 Less end of period balances of: Goodwill 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,885 3,089 3,295 3,503 3,711 Total tangible shareholders' equity - Non-GAAP 432,934 435,231 403,753 399,508 405,066 Shares outstanding, as reported - GAAP 19,274 17,058 17,058 17,033 17,031 Book value per share - GAAP $25.93 $29.44 $27.61 $27.41 $27.75 Tangible book value per share - Non-GAAP $22.46 $25.51 $23.67 $23.45 $23.78 Total tangible shareholders' equity - Non-GAAP $432,934 $435,231 $403,753 $399,508 $405,066 Total assets, as reported - GAAP 6,930,647 7,141,571 7,184,360 7,249,124 7,202,847 Less end of period balances of: Goodwill 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,885 3,089 3,295 3,503 3,711 Total tangible assets - Non-GAAP 6,863,853 7,074,573 7,117,156 7,181,712 7,135,227 Equity to assets - GAAP 7.21 % 7.03 % 6.56 % 6.44 % 6.56 % Tangible equity to tangible assets - Non-GAAP 6.31 % 6.15 % 5.67 % 5.56 % 5.68 % Category: Earnings SOURCE Washington Trust Bancorp, Inc. 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Washington Trust Reports Fourth Quarter and Full-Year 2024 Results

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