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Washington Trust Reports Second Quarter 2025 Results

1. Washington Trust's Q2 2025 net income rose to $13.2 million. 2. Net interest margin increased to 2.36%, a positive sign for profitability. 3. Mortgage banking revenue surged by 32%, reflecting increased loan sales. 4. Total loans were $5.1 billion, showing steady growth in lending. 5. Wealth management revenue grew, benefiting from seasonal tax servicing fees.

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FAQ

Why Bullish?

The increase in net income, net interest margins, and significant growth in mortgage banking revenues suggest strong operational performance, likely attracting investor interest as the company shows resilience and viability in a changing market. For example, historical trends show that increases in mortgage revenues often correlate with positive stock price movements in banking institutions.

How important is it?

The comprehensive earnings performance, especially with regard to net interest margins, indicates financial health that may attract both institutional and retail investors, thus increasing the stock's attractiveness.

Why Short Term?

Immediate response to the earnings report can influence short-term trading dynamics positively. Historical data often reveals that positive earnings surprises lead to short-term gains in stock price.

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, /PRNewswire/ -- Washington Trust Bancorp, Inc. (the "Corporation") (Nasdaq: WASH), parent company of The Washington Trust Company (the "Bank"), today reported second quarter 2025 net income of $13.2 million, or $0.68 per diluted share, up from $12.2 million, or $0.63 per diluted share, reported for the first quarter of 2025.  In the preceding quarter there were two infrequent transactions that are described further below.  Excluding these two items, adjusted net income (non-GAAP) totaled $11.8 million, or $0.61 per diluted share for the first quarter of 2025. "Washington Trust's second quarter results reflect our diversified business model performing positively. We realized growth in net interest income, wealth management revenue, and mortgage banking revenue, and we remained well-capitalized.  We are pleased with these results," said Washington Trust Chairman and Chief Executive Officer Edward O. Handy III. "As we reach our milestone 225th birthday next month, we remain focused on providing exceptional full-service banking to our customers for years to come." Selected financial highlights for the second quarter of 2025 include: The net interest margin was 2.36% in the second quarter, up by 7 basis points from the 2.29% reported in the preceding quarter. A provision for credit losses of $600 thousand was recognized for the second quarter, compared to $1.2 million in the first quarter. Wealth management revenues in the second quarter increased by 2% from the preceding quarter, reflecting a seasonal increase in transaction-based revenues. Mortgage banking revenues in the second quarter increased by 32% from the preceding quarter, reflecting a higher volume of loans sold to the secondary market. Total loans amounted to $5.1 billion, up by 1% from March 31, 2025. In-market deposits (total deposits less wholesale brokered deposits) amounted to $5.0 billion, up by 1% from March 31, 2025 and up by 9% from June 30, 2024. Net Interest IncomeNet interest income was $37.2 million for the second quarter of 2025, up by $763 thousand, or 2%, from the first quarter of 2025.  The net interest margin was 2.36% for the second quarter, an increase of 7 basis points from the preceding quarter.  Linked quarter changes included: Average interest-earning assets decreased by $134 million, largely reflecting declines in the average balance of deposits at correspondent banks and mortgage loans held for sale. The yield on interest-earning assets for the second quarter was 4.99%, up by 1 basis point from the preceding quarter. Average interest-bearing liabilities decreased by $117 million, as an increase of $89 million in the average balance of in-market deposits was offset by a decrease of $206 million in wholesale funding balances. The cost of interest-bearing liabilities for the second quarter of 2025 was 3.12%, down by 7 basis points from the preceding quarter. Noninterest IncomeNoninterest income was $17.1 million for the second quarter of 2025, down by $5.6 million, or 24.6%, from the first quarter of 2025.  In the preceding quarter, a sales leaseback pre-tax net gain of $7.0 million was recognized.  Excluding this item, adjusted noninterest income (non-GAAP) was up by $1.4 million, or 9%.  Linked quarter changes included: Wealth management revenues amounted to $10.1 million in the second quarter of 2025, up by $229 thousand, or 2%, from the preceding quarter. This included an increase of $253 thousand, or 207%, in transaction-based revenues, which was concentrated in seasonal tax servicing fee income. Asset-based revenues were down modestly by $24 thousand, or 0.2%, reflecting a decline in the average balance of wealth management AUA. The end of period AUA balance at June 30, 2025 amounted to $7.2 billion, up by $363 million, or 5%, from March 31, 2025. Mortgage banking revenues totaled $3.0 million for the second quarter of 2025, up by $730 thousand, or 32%, from the preceding quarter, reflecting a higher volume of loans sold to the secondary market. Loans sold amounted to $116.8 million in the second quarter of 2025, up by $41.3 million, or 55%, from the first quarter of 2025. Loan related derivative income from interest rate swap transactions with commercial borrowers totaled $676 thousand in the second quarter of 2025, up by $575 thousand, or 569%, from the preceding quarter. Noninterest ExpenseNoninterest expense totaled $36.5 million for the second quarter of 2025, down by $5.7 million, or 13%, from the first quarter of 2025.  A pre-tax non-cash pension plan settlement charge of $6.4 million associated with the termination of the Corporation's qualified pension plan was recognized in the first quarter of 2025.  Excluding this item, adjusted noninterest expense (non-GAAP) was up by $770 thousand, or 2%.  Linked quarter changes included: Salaries and employee benefits expense, our largest component of noninterest expense, amounted to $23.0 million, up by $603 thousand, or 3%, from the preceding quarter, largely reflecting volume-related increases in mortgage originator compensation expense. Advertising and promotion expense totaled $717 thousand, up by $307 thousand, or 75%, from the preceding quarter, reflecting the timing of such activities. The remaining linked quarter change in noninterest expense reflected modest decreases across a variety of other noninterest expense categories. Income TaxFor the second quarter of 2025, income tax expense of $3.9 million was recognized, reflecting an effective tax rate of 22.7%.  This compares to income tax expense of $3.5 million and an effective tax rate of 22.3% in the first quarter of 2025.  Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2025 effective tax rate to be approximately 22.4%. Investment SecuritiesThe securities portfolio totaled $971 million at June 30, 2025, up by $54 million, or 6%, from March 31, 2025, largely reflecting purchases of securities totaling $73 million, at a weighted average yield of 5.49%, which were partially offset by routine pay-downs on mortgage-backed debt securities in the quarter.  The securities portfolio represented 14% of total assets at both June 30, 2025 and March 31, 2025. LoansTotal loans amounted to $5.1 billion at June 30, 2025, up by $44 million, or 1%, from the end of the preceding quarter.  These changes included: Commercial loans increased by $57 million, or 2%, from March 31, 2025. Residential real estate loans decreased by $17 million, or 1%, from March 31, 2025. Consumer loans increased by $4 million, or 1%, from March 31, 2025. Deposits and BorrowingsTotal deposits amounted to $5.0 billion at June 30, 2025, up by $5 million, or 0.1%, from the end of the preceding quarter. In-market deposits, which exclude wholesale brokered deposits, amounted to $5.0 billion at June 30, 2025, up by $30 million, or 1%, from March 31, 2025. Wholesale brokered deposits amounted to $2 million and were down by $25 million, or 93%, from March 31, 2025.  FHLB advances totaled $1.0 billion at June 30, 2025, up by $151 million, or 18%, from March 31, 2025. As of June 30, 2025, contingent liquidity amounted to $1.8 billion and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity. Asset QualityNonaccrual loans were $26.1 million, or 0.51% of total loans, at June 30, 2025, compared to $21.6 million, or 0.42% of total loans, at March 31, 2025.  The composition of nonaccrual loans at June 30, 2025 was 54% commercial and 46% residential and consumer.  The change in nonaccrual loans in the second quarter was largely attributable to one commercial & industrial relationship totaling $9.4 million that was placed on nonaccrual status, partially offset by the resolution of one commercial real estate loan totaling $3.2 million. Past due loans were $14.0 million, or 0.27% of total loans, at June 30, 2025, compared to $10.2 million, or 0.20% of total loans, at March 31, 2025.  The composition of past due loans at June 30, 2025 was 13% commercial and 87% residential and consumer. The allowance for credit losses ("ACL") on loans amounted to $41.1 million, or 0.80% of total loans, at June 30, 2025, compared to $41.1 million, or 0.81% of total loans, at March 31, 2025.  The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, was $1.2 million at both June 30, 2025 and March 31, 2025. The provision for credit losses totaled $600 thousand in the second quarter of 2025, compared to $1.2 million in the preceding quarter.  Net charge-offs amounted to $647 thousand in the second quarter of 2025, compared to $2.3 million in the preceding quarter. Capital and DividendsTotal shareholders' equity was $527.5 million at June 30, 2025, up by $5.8 million, or 1%, from March 31, 2025.  Net income of $13.2 million and improvement of $3.2 million in the accumulated other comprehensive loss component of shareholders' equity were partially offset by quarterly dividend declarations of $11.0 million. The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended June 30, 2025.  The dividend was paid on July 11, 2025 to shareholders of record on July 1, 2025. Capital levels at June 30, 2025 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.06% at June 30, 2025, compared to 13.13% at March 31, 2025.  Book value per share was $27.36 at June 30, 2025, compared to $27.06 at March 31, 2025. Conference CallWashington Trust will host a conference call to discuss its second quarter results, business highlights, and outlook on Tuesday, July 22, 2025 at 8:30 a.m. (Eastern Time).  Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 177395.  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 643659.  The audio replay will be available through August 5, 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 September 30, 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 (including the impact of actual or threatened tariffs imposed by the U.S. and foreign governments, inflation 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. 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, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, adjusted net income available to common shareholders, adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average equity, and adjusted efficiency ratio, as well as measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors.  These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies.  Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Washington Trust Bancorp, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited; Dollars in thousands) Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Assets: Cash and due from banks $43,997 $33,394 $21,534 $33,694 $28,211 Interest-earning deposits with correspondent banks 119,582 82,804 88,368 173,277 75,666 Short-term investments 4,145 4,041 3,987 3,772 3,654 Mortgage loans held for sale, at fair value 35,681 21,953 21,708 20,864 26,116 Mortgage loans held for sale, at lower of cost or market — — 281,706 — — Premises and equipment held for sale, lower of cost or market — — 4,788 — — Available for sale debt securities, at fair value 971,341 917,545 916,305 973,266 951,828 Federal Home Loan Bank stock, at cost 45,273 38,899 49,817 57,439 66,166 Loans: Total loans 5,140,260 5,096,210 5,137,838 5,514,870 5,629,102 Less: allowance for credit losses on loans 41,059 41,056 41,960 42,630 42,378 Net loans 5,099,201 5,055,154 5,095,878 5,472,240 5,586,724 Premises and equipment, net 25,574 26,068 26,873 32,145 31,866 Operating lease right-of-use assets 35,578 36,048 26,943 27,612 28,387 Investment in bank-owned life insurance 113,372 107,546 106,777 105,998 105,228 Goodwill 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,478 2,682 2,885 3,089 3,295 Other assets 185,036 195,972 219,169 174,266 213,310 Total assets $6,745,167 $6,586,015 $6,930,647 $7,141,571 $7,184,360 Liabilities: Deposits: Noninterest-bearing deposits $646,584 $625,590 $661,776 $665,706 $645,661 Interest-bearing deposits 4,398,664 4,414,991 4,454,024 4,506,184 4,330,465 Total deposits 5,045,248 5,040,581 5,115,800 5,171,890 4,976,126 Federal Home Loan Bank advances 1,001,000 850,000 1,125,000 1,300,000 1,550,000 Junior subordinated debentures 22,681 22,681 22,681 22,681 22,681 Operating lease liabilities 38,299 38,716 29,578 30,237 31,012 Other liabilities 110,420 112,357 137,860 114,534 133,584 Total liabilities 6,217,648 6,064,335 6,430,919 6,639,342 6,713,403 Shareholders' Equity: Common stock 1,223 1,223 1,223 1,085 1,085 Paid-in capital 197,392 197,570 196,947 126,698 125,898 Retained earnings 437,520 435,233 434,014 505,654 504,350 Accumulated other comprehensive loss (95,949) (99,179) (119,171) (117,158) (146,326) Treasury stock, at cost (12,667) (13,167) (13,285) (14,050) (14,050) Total shareholders' equity 527,519 521,680 499,728 502,229 470,957 Total liabilities and shareholders' equity $6,745,167 $6,586,015 $6,930,647 $7,141,571 $7,184,360 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 Six Months Ended Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Interest income: Interest and fees on loans $67,345 $66,656 $71,432 $75,989 $76,240 $134,001 $151,876 Interest on mortgage loans held for sale 442 958 762 366 392 1,400 647 Taxable interest on debt securities 9,230 8,827 7,015 6,795 6,944 18,057 14,040 Nontaxable interest on debt securities 8 7 8 — — 15 — Dividends on Federal Home Loan Bank stock 792 1,022 1,312 1,262 1,124 1,814 2,197 Other interest income 1,029 1,993 1,310 3,174 1,297 3,022 2,493 Total interest and dividend income 78,846 79,463 81,839 87,586 85,997 158,309 171,253 Interest expense: Deposits 30,864 31,748 34,135 37,203 36,713 62,612 74,760 Federal Home Loan Bank advances 10,451 10,946 14,388 17,717 17,296 21,397 32,434 Junior subordinated debentures 346 347 380 404 403 693 809 Total interest expense 41,661 43,041 48,903 55,324 54,412 84,702 108,003 Net interest income 37,185 36,422 32,936 32,262 31,585 73,607 63,250 Provision for credit losses 600 1,200 1,000 200 500 1,800 1,200 Net interest income after provision for credit losses 36,585 35,222 31,936 32,062 31,085 71,807 62,050 Noninterest income (loss): Wealth management revenues 10,120 9,891 10,049 9,989 9,678 20,011 19,016 Mortgage banking revenues 3,034 2,304 2,848 2,866 2,761 5,338 5,267 Card interchange fees 1,247 1,509 1,255 1,321 1,275 2,756 2,420 Service charges on deposit accounts 808 744 794 784 769 1,552 1,454 Loan related derivative income 676 101 8 126 49 777 333 Income from bank-owned life insurance 826 769 779 770 753 1,595 1,492 Realized losses on securities, net — — (31,047) — — — — Losses on sale of portfolio loans, net — — (62,888) — — — — Gain on sale of bank-owned properties, net — 6,994 — — 988 6,994 988 Other income 367 331 310 416 387 698 2,853 Total noninterest income (loss) 17,078 22,643 (77,892) 16,272 16,660 39,721 33,823 Noninterest expense: Salaries and employee benefits 23,025 22,422 21,875 21,350 21,260 45,447 43,035 Outsourced services 4,404 4,346 4,197 4,185 4,096 8,750 7,876 Net occupancy 2,662 2,741 2,428 2,399 2,397 5,403 4,958 Equipment 930 891 936 924 958 1,821 1,978 Legal, audit, and professional fees 726 750 845 836 741 1,476 1,447 FDIC deposit insurance costs 1,235 1,262 1,266 1,402 1,404 2,497 2,845 Advertising and promotion 717 410 560 857 661 1,127 1,209 Amortization of intangibles 203 204 204 206 208 407 416 Pension plan settlement charge — 6,436 — — — 6,436 — Other expenses 2,628 2,734 1,981 2,345 2,185 5,362 4,509 Total noninterest expense 36,530 42,196 34,292 34,504 33,910 78,726 68,273 Income (loss) before income taxes 17,133 15,669 (80,248) 13,830 13,835 32,802 27,600 Income tax expense (benefit) 3,888 3,490 (19,457) 2,849 3,020 7,378 5,849 Net income (loss) $13,245 $12,179 ($60,791) $10,981 $10,815 $25,424 $21,751 Net income (loss) available to common shareholders $13,245 $12,179 ($60,776) $10,973 $10,807 $25,424 $21,731 Weighted average common shares outstanding - basic 19,285 19,276 17,452 17,058 17,052 19,280 17,042 Weighted average common shares outstanding - diluted 19,374 19,370 17,565 17,140 17,110 19,372 17,082 Per share information: Basic earnings per common share $0.69 $0.63 ($3.48) $0.64 $0.63 $1.32 $1.28 Diluted earnings per common share $0.68 $0.63 ($3.46) $0.64 $0.63 $1.31 $1.27 Cash dividends declared $0.56 $0.56 $0.56 $0.56 $0.56 $1.12 $1.12 Washington Trust Bancorp, Inc. and Subsidiaries SELECTED FINANCIAL HIGHLIGHTS (Unaudited; Dollars and shares in thousands, except per share amounts) Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Share and Equity Related Data: Book value per share $27.36 $27.06 $25.93 $29.44 $27.61 Tangible book value per share (non-GAAP) (1) $23.91 $23.61 $22.46 $25.51 $23.67 Market value per share $28.28 $30.86 $31.35 $32.21 $27.41 Shares issued at end of period 19,562 19,562 19,562 17,363 17,363 Shares outstanding at end of period 19,283 19,276 19,274 17,058 17,058 Capital Ratios (2): Tier 1 risk-based capital 12.17 % 12.23 % 11.64 % 11.39 % 11.01 % Total risk-based capital 13.06 % 13.13 % 12.47 % 12.21 % 11.81 % Tier 1 leverage ratio 8.66 % 8.45 % 8.13 % 7.85 % 7.82 % Common equity tier 1 11.71 % 11.76 % 11.20 % 10.95 % 10.59 % Balance Sheet Ratios: Equity to assets 7.82 % 7.92 % 7.21 % 7.03 % 6.56 % Tangible equity to tangible assets (non-GAAP) (1) 6.90 % 6.98 % 6.31 % 6.15 % 5.67 % Loans to deposits (3) 101.8 % 100.7 % 105.5 % 106.2 % 112.8 % For the Three Months Ended For the Six Months Ended Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Performance Ratios (4): Net interest margin (5) 2.36 % 2.29 % 1.95 % 1.85 % 1.83 % 2.32 % 1.84 % Return on average assets (6) 0.80 % 0.73 % (3.45 %) 0.60 % 0.60 % 0.76 % 0.61 % Adjusted return on average assets (non-GAAP) (1) 0.80 % 0.71 % 0.59 % 0.60 % 0.56 % 0.75 % 0.54 % Return on average tangible assets (non-GAAP) (1) 0.81 % 0.71 % 0.60 % 0.61 % 0.57 % 0.76 % 0.55 % Return on average equity (7) 10.14 % 9.63 % (48.25 %) 8.99 % 9.43 % 9.89 % 9.38 % Adjusted return on average equity (non-GAAP) (1) 10.14 % 9.30 % 8.29 % 8.99 % 8.79 % 9.73 % 8.38 % Return on average tangible equity (non-GAAP) (1) 11.62 % 10.69 % 9.57 % 10.43 % 10.29 % 11.16 % 9.80 % Efficiency ratio (8) 67.3 % 71.4 % (76.3 %) 71.1 % 70.3 % 69.5 % 70.3 % Adjusted efficiency ratio (non-GAAP) (1) 67.3 % 68.7 % 70.0 % 71.1 % 71.8 % 68.0 % 72.6 % (1) See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document. (2) Estimated for June 30, 2025 and actuals for prior periods. (3) Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits. (4) Annualized based on the actual number of days in the period. (5) Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets. (6) Net income divided by average assets. (7) Net income available for common shareholders divided by average equity. (8) Total noninterest expense as percentage of total revenues (net interest income and noninterest income). Washington Trust Bancorp, Inc. and Subsidiaries SELECTED FINANCIAL HIGHLIGHTS (Unaudited; Dollars in thousands) For the Three Months Ended For the Six Months Ended Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Wealth Management Results Wealth Management Revenues: Asset-based revenues $9,745 $9,769 $9,910 $9,770 $9,239 $19,514 $18,328 Transaction-based revenues 375 122 139 219 439 497 688 Total wealth management revenues $10,120 $9,891 $10,049 $9,989 $9,678 $20,011 $19,016 Assets Under Administration (AUA): Balance at beginning of period $6,818,390 $7,077,802 $7,052,408 $6,803,491 $6,858,322 $7,077,802 $6,588,406 Net investment appreciation (depreciation)      & income 466,541 (148,748) 57,706 372,027 108,529 317,793 472,773 Net client asset outflows (103,216) (110,664) (32,312) (123,110) (163,360) (213,880) (257,688) Balance at end of period $7,181,715 $6,818,390 $7,077,802 $7,052,408 $6,803,491 $7,181,715 $6,803,491 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) $2,460 $1,575 $2,493 $2,492 $2,205 $4,035 $3,791 Changes in fair value, net (2) 19 133 (317) (28) 20 152 344 Loan servicing fee income, net (3) 555 596 672 402 536 1,151 1,132 Total mortgage banking revenues $3,034 $2,304 $2,848 $2,866 $2,761 $5,338 $5,267 Residential Mortgage Loan Originations: Originations for retention in portfolio (4) $51,331 $27,662 $15,155 $26,317 $26,520 $78,993 $50,994 Originations for sale to secondary market (5) 130,212 75,519 114,137 115,117 110,728 205,731 188,826 Total mortgage loan originations $181,543 $103,181 $129,292 $141,434 $137,248 $284,724 $239,820 Percentage of originations for sale to total mortgage loan originations 72 % 73 % 88 % 81 % 81 % 72 % 79 % Residential Mortgage Loans Sold: Sold with servicing rights retained $7,762 $16,819 $62,410 $17,881 $24,570 $24,581 $48,627 Sold with servicing rights released (5) 109,013 58,680 50,697 102,457 85,482 167,693 134,069 Total mortgage loans sold $116,775 $75,499 $113,107 $120,338 $110,052 $192,274 $182,696 (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) Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Loans: Commercial real estate (1) $2,178,925 $2,134,107 $2,154,504 $2,102,091 $2,191,996 Commercial & industrial 547,318 535,030 542,474 566,279 558,075 Total commercial 2,726,243 2,669,137 2,696,978 2,668,370 2,750,071 Residential real estate (2) 2,096,250 2,113,307 2,126,171 2,529,397 2,558,533 Home equity 300,917 296,563 297,119 299,379 302,027 Other 16,850 17,203 17,570 17,724 18,471 Total consumer 317,767 313,766 314,689 317,103 320,498 Total loans $5,140,260 $5,096,210 $5,137,838 $5,514,870 $5,629,102 (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. June 30, 2025 December 31, 2024 Balance % of Total Balance % of Total Commercial Real Estate Loans by Property Location: Connecticut $850,350 39 % $839,079 39 % Massachusetts 650,834 30 663,026 31 Rhode Island 429,385 20 434,244 20 Subtotal 1,930,569 89 1,936,349 90 All other states 248,356 11 218,155 10 Total commercial real estate loans $2,178,925 100 % $2,154,504 100 % Residential Real Estate Loans by Property Location: Massachusetts $1,489,658 71 % $1,530,847 72 % Rhode Island 459,486 22 443,237 21 Connecticut 124,623 6 128,933 6 Subtotal 2,073,767 99 2,103,017 99 All other states 22,483 1 23,154 1 Total residential real estate loans $2,096,250 100 % $2,126,171 100 % Washington Trust Bancorp, Inc. and Subsidiaries END OF PERIOD LOAN COMPOSITION (Unaudited; Dollars in thousands) June 30, 2025 December 31, 2024 Balance % of Total Balance % of Total Commercial Real Estate Portfolio Segmentation: Multi-family $629,184 29 % $567,243 26 % Retail 407,039 19 433,146 20 Industrial and warehouse 370,839 17 358,425 17 Office 274,657 13 289,853 13 Hospitality 222,715 10 213,585 10 Healthcare Facility 193,791 9 205,858 10 Mixed-use 26,379 1 29,023 1 Other 54,321 2 57,371 3 Total commercial real estate loans $2,178,925 100 % $2,154,504 100 % Commercial & Industrial Portfolio Segmentation: Healthcare and social assistance $118,747 22 % $126,547 23 % Real estate rental and leasing 56,715 10 63,992 12 Educational services 55,174 10 47,092 9 Transportation and warehousing 52,698 10 55,784 10 Retail trade 50,207 9 41,132 8 Finance and insurance 24,779 5 26,557 5 Accommodation and food services 24,752 5 12,368 2 Information 21,858 4 22,265 4 Manufacturing 21,536 4 32,140 6 Arts, entertainment, and recreation 19,129 3 19,861 4 Professional, scientific, and technical services 11,990 2 10,845 2 Public administration 2,036 — 2,186 — Other 87,697 16 81,705 15 Total commercial & industrial loans $547,318 100 % $542,474 100 % Weighted Average Asset Quality Balance (2) (3) Average  Loan Size (4) Loan to Value Debt  Service Coverage Pass Special Mention Classified Nonaccrual(included in Classified) Non-Owner Occupied Commercial Real Estate Office (inclusive of Construction): Class A $102,923 $9,406 58 % 1.76x $96,710 $— $6,213 $— Class B 74,536 3,405 55 % 1.34x 70,260 — 4,276 4,276 Class C 14,757 1,845 54 % 1.25x 12,560 2,197 — — Medical Office 53,102 7,586 69 % 1.40x 53,102 — — — Lab Space 29,339 23,480 91 % 0.38x — 6,509 22,830 — Total office at June 30, 2025 (1) $274,657 $5,864 64 % 1.34x $232,632 $8,706 $33,319 $4,276 Total office at March 31, 2025 $275,787 $6,305 65 % 1.48x $231,961 $8,536 $35,290 $7,605 Total office linked quarter change ($1,130) ($441) (1 %) (0.14x) $671 $170 ($1,971) ($3,329) (1) Approximately 66% of the total commercial real estate office balance of $275 million is secured by income producing properties located in suburban areas.  Additionally, approximately 49% of the total commercial real estate office balance is scheduled to mature before June 30, 2027. (2) Balance of commercial real estate office consists of 50 loans as of June 30, 2025. (3) Does not include $18.5 million of unfunded commitments as of June 30, 2025. (4) Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans. Washington Trust Bancorp, Inc. and Subsidiaries END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY (Unaudited; Dollars in thousands) Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Deposits: Noninterest-bearing demand deposits $646,584 $625,590 $661,776 $665,706 $645,661 Interest-bearing demand deposits (in-market) 668,483 654,599 592,904 596,319 532,316 NOW accounts 680,246 686,666 692,812 685,531 722,797 Money market accounts 1,147,792 1,202,703 1,154,745 1,146,426 1,086,088 Savings accounts 693,055 630,413 523,915 490,285 485,208 Time deposits (in-market) (1) 1,207,255 1,213,382 1,192,110 1,207,626 1,164,839 In-market deposits 5,043,415 5,013,353 4,818,262 4,791,893 4,636,909 Wholesale brokered time deposits 1,833 27,228 297,538 379,997 339,217 Total deposits $5,045,248 $5,040,581 $5,115,800 $5,171,890 $4,976,126 (1) As of June 30, 2025, in-market deposits were approximately 60% retail and 40% commercial and the average size was approximately $37 thousand. June 30, 2025 December 31, 2024 Balance % of TotalDeposits Balance % of TotalDeposits Uninsured Deposits: Uninsured deposits (1) $1,365,590 27 % $1,363,689 27 % Less: affiliate deposits (2) 76,352 1 94,740 2 Uninsured deposits, excluding affiliate deposits 1,289,238 26 1,268,949 25 Less: fully-collateralized preferred deposits (3) 207,695 5 197,638 4 Uninsured deposits, after exclusions $1,081,543 21 % $1,071,311 21 % (1) Determined in accordance with regulatory reporting requirements, which includes affiliate deposits and fully-collateralized preferred deposits. (2) Uninsured deposit balances of Washington Trust Bancorp, Inc. and its subsidiaries that are eliminated in consolidation. (3) Uninsured deposits of states and political subdivisions, which are secured or collateralized as required by state law. Jun 30,2025 Dec 31,2024 Contingent Liquidity: Federal Home Loan Bank of Boston $987,119 $752,951 Federal Reserve Bank of Boston 111,454 70,286 Available cash liquidity (1) 87,662 36,647 Unencumbered securities 596,906 597,771 Total $1,783,141 $1,457,655 Percentage of total contingent liquidity to uninsured deposits 130.6 % 106.9 % Percentage of total contingent liquidity to uninsured deposits, after exclusions 164.9 % 136.1 % (1) Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs. Washington Trust Bancorp, Inc. and Subsidiaries CREDIT & ASSET QUALITY DATA (Unaudited; Dollars in thousands) Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Asset Quality Ratios: Nonperforming assets to total assets 0.39 % 0.33 % 0.34 % 0.44 % 0.43 % Nonaccrual loans to total loans 0.51 % 0.42 % 0.45 % 0.56 % 0.54 % Total past due loans to total loans 0.27 % 0.20 % 0.23 % 0.37 % 0.21 % Allowance for credit losses on loans to nonaccrual loans 157.27 % 189.85 % 180.03 % 136.89 % 139.04 % Allowance for credit losses on loans to total loans 0.80 % 0.81 % 0.82 % 0.77 % 0.75 % Nonperforming Assets: Commercial real estate $4,276 $7,605 $10,053 $18,259 $18,390 Commercial & industrial 9,711 1,140 515 616 642 Total commercial 13,987 8,745 10,568 18,875 19,032 Residential real estate 10,614 11,102 10,767 10,517 9,744 Home equity 1,507 1,779 1,972 1,750 1,703 Other consumer — — — — — Total consumer 1,507 1,779 1,972 1,750 1,703 Total nonaccrual loans 26,108 21,626 23,307 31,142 30,479 Other real estate owned — — — — 683 Total nonperforming assets $26,108 $21,626 $23,307 $31,142 $31,162 Past Due Loans (30 days or more past due): Commercial real estate $— $— $— $10,476 $— Commercial & industrial 1,799 1,146 900 3 2 Total commercial 1,799 1,146 900 10,479 2 Residential real estate 9,772 6,439 7,741 6,947 8,534 Home equity 2,430 2,578 2,947 2,800 3,324 Other consumer 34 32 394 75 20 Total consumer 2,464 2,610 3,341 2,875 3,344 Total past due loans $14,035 $10,195 $11,982 $20,301 $11,880 Accruing loans 90 days or more past due $— $— $— $— $— Nonaccrual loans included in past due loans $8,186 $7,354 $6,447 $18,119 $8,409 Washington Trust Bancorp, Inc. and Subsidiaries CREDIT & ASSET QUALITY DATA (Unaudited; Dollars in thousands) For the Three Months Ended For the Six Months Ended Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Nonaccrual Loan Activity: Balance at beginning of period $21,626 $23,307 $31,142 $30,479 $30,710 $23,307 $44,618 Additions to nonaccrual status 10,454 2,142 5,417 1,880 556 12,596 988 Loans returned to accruing status (1,493) (4) (9) (268) (369) (1,497) (14,133) Loans charged-off (667) (2,522) (2,231) (59) (53) (3,189) (123) Loans transferred to other real estate owned — — — — — — — Payments, payoffs, and other changes (3,812) (1,297) (11,012) (890) (365) (5,109) (871) Balance at end of period $26,108 $21,626 $23,307 $31,142 $30,479 $26,108 $30,479 Allowance for Credit Losses on Loans: Balance at beginning of period $41,056 $41,960 $42,630 $42,378 $41,905 $41,960 $41,057 Provision for credit losses on loans (1) 650 1,400 1,200 300 500 2,050 1,400 Charge-offs (667) (2,522) (2,231) (59) (53) (3,189) (123) Recoveries 20 218 361 11 26 238 44 Balance at end of period $41,059 $41,056 $41,960 $42,630 $42,378 $41,059 $42,378 Allowance for Credit Losses on Unfunded Commitments: Balance at beginning of period $1,240 $1,440 $1,640 $1,740 $1,740 $1,440 $1,940 Provision for credit losses on unfunded commitments (1) (50) (200) (200) (100) — (250) (200) Balance at end of period (2) $1,190 $1,240 $1,440 $1,640 $1,740 $1,190 $1,740 (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 Six Months Ended Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Net Loan Charge-Offs (Recoveries): Commercial real estate $274 $2,250 $1,961 $— $— $2,524 $— Commercial & industrial 307 3 181 2 4 310 3 Total commercial 581 2,253 2,142 2 4 2,834 3 Residential real estate — — (160) — — — — Home equity (1) (1) (189) (1) (6) (2) (7) Other consumer 67 52 77 47 29 119 83 Total consumer 66 51 (112) 46 23 117 76 Total $647 $2,304 $1,870 $48 $27 $2,951 $79 Net charge-offs to average loans - annualized 0.05 % 0.18 % 0.14 % — % — % 0.12 % — % 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 June 30, 2025 March 31, 2025 Change Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Average Balance Interest Yield/ Rate Assets: Cash, federal funds sold, and short-term      investments $92,692 $1,029 4.45 % $185,724 $1,993 4.35 % ($93,032) ($964) 0.10 % Mortgage loans held for sale 27,466 442 6.45 105,253 958 3.69 (77,787) (516) 2.76 Taxable debt securities 1,067,394 9,230 3.47 1,042,687 8,827 3.43 24,707 403 0.04 Nontaxable debt securities 650 8 4.94 650 8 4.99 — — (0.05) Total securities 1,068,044 9,238 3.47 1,043,337 8,835 3.43 24,707 403 0.04 FHLB stock 41,484 792 7.66 43,491 1,022 9.53 (2,007) (230) (1.87) Commercial real estate 2,161,987 31,225 5.79 2,138,301 30,354 5.76 23,686 871 0.03 Commercial & industrial 550,550 7,967 5.80 538,083 7,874 5.93 12,467 93 (0.13) Total commercial 2,712,537 39,192 5.80 2,676,384 38,228 5.79 36,153 964 0.01 Residential real estate 2,096,538 22,996 4.40 2,120,452 23,354 4.47 (23,914) (358) (0.07) Home equity 298,645 5,167 6.94 296,735 5,061 6.92 1,910 106 0.02 Other 17,001 207 4.88 17,349 217 5.07 (348) (10) (0.19) Total consumer 315,646 5,374 6.83 314,084 5,278 6.82 1,562 96 0.01 Total loans 5,124,721 67,562 5.29 5,110,920 66,860 5.31 13,801 702 (0.02) Total interest-earning assets 6,354,407 79,063 4.99 6,488,725 79,668 4.98 (134,318) (605) 0.01 Noninterest-earning assets 288,963 276,332 12,631 Total assets $6,643,370 $6,765,057 ($121,687) Liabilities and Shareholders' Equity: Interest-bearing demand deposits (in-     market) $664,290 $6,251 3.77 % $628,490 $5,876 3.79 % $35,800 $375 (0.02 %) NOW accounts 670,878 341 0.20 679,138 343 0.20 (8,260) (2) — Money market accounts 1,182,377 9,779 3.32 1,232,042 10,028 3.30 (49,665) (249) 0.02 Savings accounts 664,590 3,080 1.86 564,002 1,851 1.33 100,588 1,229 0.53 Time deposits (in-market) 1,215,018 11,308 3.73 1,204,779 11,304 3.81 10,239 4 (0.08) Interest-bearing in-market deposits 4,397,153 30,759 2.81 4,308,451 29,402 2.77 88,702 1,357 0.04 Wholesale brokered time deposits 8,485 105 4.96 188,386 2,346 5.05 (179,901) (2,241) (0.09) Total interest-bearing deposits 4,405,638 30,864 2.81 4,496,837 31,748 2.86 (91,199) (884) (0.05) FHLB advances 934,066 10,451 4.49 959,889 10,946 4.62 (25,823) (495) (0.13) Junior subordinated debentures 22,681 346 6.12 22,681 347 6.20 — (1) (0.08) Total interest-bearing liabilities 5,362,385 41,661 3.12 5,479,407 43,041 3.19 (117,022) (1,380) (0.07) Noninterest-bearing demand deposits 615,926 620,849 (4,923) Other liabilities 141,350 151,753 (10,403) Shareholders' equity 523,709 513,048 10,661 Total liabilities and shareholders' equity $6,643,370 $6,765,057 ($121,687) Net interest income (FTE) $37,402 $36,627 $775 Interest rate spread 1.87 % 1.79 % 0.08 % Net interest margin 2.36 % 2.29 % 0.07 % Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: For the Three Months Ended Jun 30, 2025 Mar 31, 2025 Change Commercial loans $219 $206 $13 Nontaxable debt securities — 1 (1) Total $219 $207 $12 Washington Trust Bancorp, Inc. and Subsidiaries CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) (Unaudited; Dollars in thousands) For the Six Months Ended June 30, 2025 June 30, 2024 Change AverageBalance Interest Yield/ Rate AverageBalance Interest Yield/  Rate Averagealance Interest Yield/  Rate Assets: Cash, federal funds sold and short-term investments $138,950 $3,022 4.39 % $87,964 $2,493 5.70 % $50,986 $529 (1.31 %) Mortgage loans for sale 66,145 1,400 4.27 19,103 647 6.81 47,042 753 (2.54) Taxable debt securities 1,055,109 18,057 3.45 1,138,013 14,040 2.48 (82,904) 4,017 0.97 Nontaxable debt securities 650 16 4.96 — — — 650 16 4.96 Total securities 1,055,759 18,073 3.45 1,138,013 14,040 2.48 (82,254) 4,033 0.97 FHLB stock 42,482 1,814 8.61 57,106 2,197 7.74 (14,624) (383) 0.87 Commercial real estate 2,150,209 61,579 5.78 2,154,336 68,927 6.43 (4,127) (7,348) (0.65) Commercial & industrial 544,352 15,841 5.87 606,766 19,728 6.54 (62,414) (3,887) (0.67) Total commercial 2,694,561 77,420 5.79 2,761,102 88,655 6.46 (66,541) (11,235) (0.67) Residential real estate 2,108,429 46,350 4.43 2,581,357 53,004 4.13 (472,928) (6,654) 0.30 Home equity 297,695 10,229 6.93 308,467 10,215 6.66 (10,772) 14 0.27 Other 17,174 423 4.97 18,744 451 4.84 (1,570) (28) 0.13 Total consumer 314,869 10,652 6.82 327,211 10,666 6.56 (12,342) (14) 0.26 Total loans 5,117,859 134,422 5.30 5,669,670 152,325 5.40 (551,811) (17,903) (0.10) Total interest-earning assets 6,421,195 158,731 4.98 6,971,856 171,702 4.95 (550,661) (12,971) 0.03 Noninterest-earning assets 282,682 257,800 24,882 Total assets $6,703,877 $7,229,656 ($525,779) Liabilities and Shareholders' Equity: Interest-bearing demand deposits (in-market) $646,489 $12,126 3.78 % $521,495 $11,770 4.54 % $124,994 $356 (0.76 %) NOW accounts 674,985 685 0.20 716,896 764 0.21 (41,911) (79) (0.01) Money market accounts 1,207,072 19,806 3.31 1,113,962 21,351 3.85 93,110 (1,545) (0.54) Savings accounts 614,573 4,932 1.62 486,472 1,554 0.64 128,101 3,378 0.98 Time deposits (in-market) 1,209,927 22,611 3.77 1,153,702 23,522 4.10 56,225 (911) (0.33) Interest-bearing in-market deposits 4,353,046 60,160 2.79 3,992,527 58,961 2.97 360,519 1,199 (0.18) Wholesale brokered time deposits 97,939 2,452 5.05 608,514 15,799 5.22 (510,575) (13,347) (0.17) Total interest-bearing deposits 4,450,985 62,612 2.84 4,601,041 74,760 3.27 (150,056) (12,148) (0.43) FHLB advances 946,906 21,397 4.56 1,318,544 32,434 4.95 (371,638) (11,037) (0.39) Junior subordinated debentures 22,681 693 6.16 22,681 809 7.17 — (116) (1.01) Total interest-bearing liabilities 5,420,572 84,702 3.15 5,942,266 108,003 3.66 (521,694) (23,301) (0.51) Noninterest-bearing demand deposits 618,373 658,423 (40,050) Other liabilities 146,524 162,939 (16,415) Shareholders' equity 518,408 466,028 52,380 Total liabilities and shareholders' equity $6,703,877 $7,229,656 ($525,779) Net interest income (FTE) $74,029 $63,699 $10,330 Interest rate spread 1.83 % 1.29 % 0.54 % Net interest margin 2.32 % 1.84 % 0.48 % Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: For the Six Months Ended Jun 30, 2025 Jun 30, 2024 Change Commercial loans $425 $449 ($24) Nontaxable debt securities 1 — 1 Total $426 $449 ($23) Washington Trust Bancorp, Inc. and Subsidiaries SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (Unaudited; Dollars in thousands, except per share amounts) The following table presents 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: For the Three Months Ended For the Six Months Ended Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Adjusted Noninterest Income: Noninterest income (loss), as reported $17,078 $22,643 ($77,892) $16,272 $16,660 $39,721 $33,823 Less adjustments: Realized losses on securities, net — — (31,047) — — — — Losses on sale of portfolio loans, net — — (62,888) — — — — Gain on sale of bank-owned properties, net — 6,994 — — 988 6,994 988 Litigation settlement income — — — — — — 2,100 Total adjustments, pre-tax — 6,994 (93,935) — 988 6,994 3,088 Adjusted noninterest income (non-GAAP) $17,078 $15,649 $16,043 $16,272 $15,672 $32,727 $30,735 Adjusted Noninterest Expense: Noninterest expense, as reported $36,530 $42,196 $34,292 $34,504 $33,910 $78,726 $68,273 Less adjustments: Pension plan settlement charge — 6,436 — — — 6,436 — Total adjustments, pre-tax — 6,436 — — — 6,436 — Adjusted noninterest expense (non-GAAP) $36,530 $35,760 $34,292 $34,504 $33,910 $72,290 $68,273 Adjusted Income Before Income Taxes: Income (loss) before income taxes $17,133 $15,669 ($80,248) $13,830 $13,835 $32,802 $27,600 Less: total adjustments, pre-tax — 558 (93,935) — 988 558 3,088 Adjusted income before income taxes (non-GAAP) $17,133 $15,111 $13,687 $13,830 $12,847 $32,244 $24,512 Adjusted Income Tax Expense: Income tax expense (benefit), as reported $3,888 $3,490 ($19,457) $2,849 $3,020 $7,378 $5,849 Less: tax on total adjustments — 141 (22,699) — 249 141 779 Adjusted income tax expense (non-GAAP) $3,888 $3,349 $3,242 $2,849 $2,771 $7,237 $5,070 Adjusted Effective Tax Rate: Effective tax rate (1) 22.7 % 22.3 % 24.2 % 20.6 % 21.8 % 22.5 % 21.2 % Less: impact of total adjustments — 0.1 0.5 — 0.2 0.1 0.5 Adjusted effective tax rate (non-GAAP) (2) 22.7 % 22.2 % 23.7 % 20.6 % 21.6 % 22.4 % 20.7 % Adjusted Net Income: Net income (loss), as reported $13,245 $12,179 ($60,791) $10,981 $10,815 $25,424 $21,751 Less: total adjustments, after-tax — 417 (71,236) — 739 417 2,309 Adjusted net income (non-GAAP) $13,245 $11,762 $10,445 $10,981 $10,076 $25,007 $19,442 Adjusted Net Income Available to Common Shareholders: Net income (loss) available to common shareholders, as      reported $13,245 $12,179 ($60,776) $10,973 $10,807 $25,424 $21,731 Less: total adjustments available to common shareholders, after-tax — 417 (71,221) — 738 417 2,306 Adjusted net income available to common shareholders      (non-GAAP) $13,245 $11,762 $10,445 $10,973 $10,069 $25,007 $19,425 (1) Calculated as income tax expense (benefit) divided by income (loss) before income taxes. (2) Calculated as income tax expense (benefit), adjusted for the tax impact of the adjustments as outlined in the table above, divided by income (loss) before income taxes, adjusted for the pre-tax impact of the 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 table presents adjusted diluted earnings per common share and adjusted efficiency ratio: For the Three Months Ended For the Six Months Ended  Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Adjusted Diluted Earnings per Common Share: Diluted earnings (loss) per common share, as reported (1) $0.68 $0.63 ($3.46) $0.64 $0.63 $1.31 $1.27 Less: impact of total adjustments — 0.02 (4.05) — 0.04 0.02 0.13 Adjusted diluted earnings per common share (non-GAAP)      (2) $0.68 $0.61 $0.59 $0.64 $0.59 $1.29 $1.14 Adjusted Efficiency Ratio: Efficiency ratio, as reported (3) 67.3 % 71.4 % (76.3 %) 71.1 % 70.3 % 69.5 % 70.3 % Less: impact of total adjustments — 2.7 (146.3) — (1.5) 1.5 (2.3) Adjusted efficiency ratio (non-GAAP) (4) 67.3 % 68.7 % 70.0 % 71.1 % 71.8 % 68.0 % 72.6 % (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. The following table presents adjusted return on average assets and return on average tangible assets: For the Three Months Ended For the Six MonthsEnded Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Adjusted Return on Average Assets: Net income (loss), as reported $13,245 $12,179 ($60,791) $10,981 $10,815 $25,424 $21,751 Less: total adjustments, after-tax — 417 (71,236) — 739 417 2,309 Adjusted net income (non-GAAP) 13,245 11,762 10,445 10,981 10,076 25,007 19,442 Total average assets, as reported 6,643,370 6,765,057 7,011,839 7,254,566 7,227,478 6,703,877 7,229,656 Return on average assets (1) 0.80 % 0.73 % (3.45 %) 0.60 % 0.60 % 0.76 % 0.61 % Adjusted return on average assets (non-GAAP) (2) 0.80 % 0.71 % 0.59 % 0.60 % 0.56 % 0.75 % 0.54 % Return on Average Tangible Assets: Adjusted net income (non-GAAP) $13,245 $11,762 $10,445 $10,981 $10,076 $25,007 $19,442 Total average assets, as reported 6,643,370 6,765,057 7,011,839 7,254,566 7,227,478 6,703,877 7,229,656 Less average balances of: Goodwill 63,909 63,909 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,577 2,781 2,984 3,189 3,397 2,679 3,500 Total average tangible assets 6,576,884 6,698,367 6,944,946 7,187,468 7,160,172 6,637,289 7,162,247 Return on average assets (1) 0.80 % 0.73 % (3.45 %) 0.60 % 0.60 % 0.76 % 0.61 % Return on average tangible assets (non-GAAP) (3) 0.81 % 0.71 % 0.60 % 0.61 % 0.57 % 0.76 % 0.55 % (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 table presents adjusted return on average equity and return on average tangible equity: For the Three Months Ended For the Six Months Ended Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Jun 30,2025 Jun 30,2024 Adjusted Return on Average Equity: Net income (loss) available to common      shareholders, as reported $13,245 $12,179 ($60,776) $10,973 $10,807 $25,424 $21,731 Less: total adjustments, after-tax — 417 (71,221) — 738 417 2,306 Adjusted net income available to common      shareholders (non-GAAP) 13,245 11,762 10,445 10,973 10,069 25,007 19,425 Total average equity, as reported 523,709 513,048 501,099 485,654 460,959 518,408 466,028 Return on average equity (1) 10.14 % 9.63 % (48.25 %) 8.99 % 9.43 % 9.89 % 9.38 % Adjusted return on average equity (non-GAAP) (2) 10.14 % 9.30 % 8.29 % 8.99 % 8.79 % 9.73 % 8.38 % Return on Average Tangible Equity: Adjusted net income available to common      shareholders (non-GAAP) $13,245 $11,762 $10,445 $10,973 $10,069 $25,007 $19,425 Total average equity, as reported 523,709 513,048 501,099 485,654 460,959 518,408 466,028 Less average balances of: Goodwill 63,909 63,909 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,577 2,781 2,984 3,189 3,397 2,679 3,500 Total average tangible equity (non-GAAP) 457,223 446,358 434,206 418,556 393,653 451,820 398,619 Return on average equity (1) 10.14 % 9.63 % (48.25 %) 8.99 % 9.43 % 9.89 % 9.38 % Return on average tangible equity (non-GAAP) (3) 11.62 % 10.69 % 9.57 % 10.43 % 10.29 % 11.16 % 9.80 % (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: Jun 30,2025 Mar 31,2025 Dec 31,2024 Sep 30,2024 Jun 30,2024 Tangible Book Value per Share: Total shareholders' equity, as reported $527,519 $521,680 $499,728 $502,229 $470,957 Less end of period balances of: Goodwill 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,478 2,682 2,885 3,089 3,295 Total tangible shareholders' equity (non-GAAP) 461,132 455,089 432,934 435,231 403,753 Shares outstanding, as reported 19,283 19,276 19,274 17,058 17,058 Book value per share $27.36 $27.06 $25.93 $29.44 $27.61 Tangible book value per share (non-GAAP) $23.91 $23.61 $22.46 $25.51 $23.67 Tangible Equity to Tangible Assets: Total tangible shareholders' equity $461,132 $455,089 $432,934 $435,231 $403,753 Total assets, as reported 6,745,167 6,586,015 6,930,647 7,141,571 7,184,360 Less end of period balances of: Goodwill 63,909 63,909 63,909 63,909 63,909 Identifiable intangible assets, net 2,478 2,682 2,885 3,089 3,295 Total tangible assets (non-GAAP) 6,678,780 6,519,424 6,863,853 7,074,573 7,117,156 Equity to assets 7.82 % 7.92 % 7.21 % 7.03 % 6.56 % Tangible equity to tangible assets (non-GAAP) 6.90 % 6.98 % 6.31 % 6.15 % 5.67 % Category: Earnings SOURCE Washington Trust Bancorp, Inc. 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