US Market News
3月前
Washington Trust Reports First Quarter 2026 ResultsApril 20, 2026 4:05 PM
PR Newswire (US)
WESTERLY, R.I., April 20, 2026 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH; "Washington Trust" or the "Corporation"), today reported first quarter 2026 net income of $12.6 million, or $0.66 per diluted share, compared to $16.0 million, or $0.83 per diluted share, for the preceding quarter. Compared to the first quarter of 2025, net income was up by $421 thousand, or $0.03 per diluted share, on a GAAP basis, and was up by $838 thousand, or $0.05 per diluted share, on an adjusted (non-GAAP) basis.
"Washington Trust delivered solid first quarter 2026 results, led by an increase in net interest margin, which reflects the strength of our core banking business and continued benefits from the December 2024 balance sheet repositioning transactions," said Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III. "Our balance sheet remains strong, and as we move through 2026, Washington Trust is focused on delivering long-term shareholder value while providing customers with personalized service, local decision-making, and a comprehensive suite of financial products and services."FIRST QUARTER HIGHLIGHTS (Q1 2026 vs. Q4 2025, unless otherwise noted):Returns on average equity and average assets were 9.23% and 0.78% for the first quarter.Net interest margin ("NIM") was 2.63%, up by 7 basis points and up by 34 basis points from the first quarter of 2025.The provision for credit losses was $4.0 million for the first quarter.Wealth management revenues decreased by 2% and were up by 8% from the first quarter of 2025.Mortgage banking revenues were seasonally down by 6%, and were up by 32% from the first quarter of 2025.Loan balances were down by 2% from both December 31, 2025 and March 31, 2025.In-market deposits (total deposits less wholesale brokered deposits) were down by 2% from December 31, 2025 and up by 3% from March 31, 2025.Capital ratios remained strong, with a total risk-based capital ratio of 13.38% at March 31, 2026.RESULTS OF OPERATIONS (Q1 2026 vs. Q4 2025, unless otherwise noted):Net Interest IncomeNet interest income was down by $223 thousand, or 1%, and as noted above NIM was up by 7 basis points. Compared to the first quarter of 2025, net interest income was up by $4.1 million, or 11%, and NIM was up by 34 basis points.Commercial loan prepayment fee income was $116 thousand (a 1 basis point benefit to NIM), compared to $516 thousand (a 3 basis point benefit to NIM) in the prior quarter.Average interest-earning assets decreased by $88 million, and the yield was down by 7 basis points.Average interest-bearing liabilities decreased by $49 million, and the rate was down by 19 basis points.Noninterest IncomeNoninterest income was down by $1.2 million, or 6%. Adjusted noninterest income (non-GAAP) was up by $1.7 million, or 11%, from the first quarter of 2025.Wealth management revenues decreased by $205 thousand, or 2%, and average assets under administration ("AUA") decreased by 1%. Compared to the first quarter of 2025, wealth management revenues increased by $756 thousand, or 8%, and average AUA increased by 10%.Mortgage banking revenues were down by $205 thousand, or 6%, largely driven by a seasonal decline in loan sales volume. Mortgage banking revenues increased by 32% compared to the first quarter of 2025.Loan related derivative income totaled $227 thousand, down by $854 thousand, reflecting lower transaction volume.Noninterest ExpenseNoninterest expense was down by $218 thousand, or 1%. Adjusted noninterest expense (non-GAAP) was up by $2.0 million, or 6%, from the first quarter of 2025.Salaries and employee benefits expense increased by $693 thousand, or 3%, largely reflecting higher payroll taxes associated with the start of a new calendar year. Compared to the first quarter of 2025, salaries and employee benefits expense increased by $1.9 million, or 9%, reflecting staffing increases, including the addition of resources in our commercial banking and wealth management business lines.Other noninterest expenses were down by $1.2 million, or 31%, largely due to a $1.0 million contribution made by Washington Trust to its charitable foundation in the prior quarter.Income TaxIncome tax expense was down by $1.2 million. The effective tax rate was 21.6%, compared to 22.7%. The Corporation expects its full-year 2026 effective tax rate to be approximately 21.5%.FINANCIAL CONDITION (Mar 31, 2026 vs. Dec 31, 2025, unless otherwise noted):Investment SecuritiesThe securities portfolio totaled $912 million, down by $28 million, or 3%, and remained at 14% of total assets.LoansTotal loans amounted to $5.0 billion, down by $120 million, or 2%.Commercial loans decreased by $95 million, or 3%.Residential real estate loans decreased by $21 million, or 1%.Consumer loans decreased by $3 million, or 1%.Deposits and BorrowingsTotal deposits amounted to $5.2 billion, and were down by $105 million, or 2%. Compared to March 31, 2025, deposits were up by $124 million, or 2%. In-market deposits, which exclude wholesale brokered deposits, decreased by $105 million, or 2%. Compared to March 31, 2025, in-market deposits were up by $151 million, or 3%.FHLB advances totaled $576 million, and were down by $50 million, or 8%. Compared to March 31, 2025, FHLB advances were down by $274 million, or 32%.Contingent liquidity amounted to $2.0 billion at March 31, 2026 and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.Capital and DividendsTotal shareholders' equity was $546.8 million, up by $3.2 million, or 1%.The Board of Directors declared a quarterly dividend of 56 cents per share for the first quarter. The dividend was paid on April 10, 2026 to shareholders of record on April 1, 2026.Capital levels exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.38%, compared to 12.95%.Book value per share was $28.72, compared to $28.56.ASSET QUALITY (Mar 31, 2026 vs. Dec 31, 2025, unless otherwise noted):Nonaccrual loans were $40.4 million, or 0.81% of total loans, up from $12.9 million, or 0.25%. The increase was largely due to two commercial real estate office loans that were placed on nonaccrual status.Past due loans were $16.4 million, or 0.33% of total loans, up from $11.4 million, or 0.22%, and included $7.0 million of commercial loans and $9.4 million of residential and consumer loans.The provision for credit losses totaled $4.0 million in the first quarter, compared to $600 thousand in the prior quarter. The first quarter provision largely reflected an increase in specific reserves, partially offset by a decline in loan portfolio balances. The Corporation recorded $10 thousand of net charge-offs in the first quarter, compared to net recoveries of $160 thousand in the preceding quarter.The allowance for credit losses ("ACL") on loans amounted to $41.1 million, or 0.82% of total loans, compared to $37.2 million, or 0.73%.Conference CallWashington Trust will host a conference call to discuss its first quarter results, business highlights, and outlook on April 21, 2026, at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 948138. 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 238648. The audio replay will be available through May 5, 2026. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, https://ir.washtrust.com, and will be available through June 30, 2026.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 ongoing armed conflicts, tariffs, inflation, current or future U.S government shutdowns, and concerns about liquidity) on a national basis and in the local markets in which we operate;interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;changes in customer behavior due to political, business and economic conditions;changes in loan demand and collectability;the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments;ongoing volatility in national and international financial markets;reductions in the market value or outflows of wealth management AUA;decreases in the value of securities and other assets;increases in defaults and charge-off rates;changes in the size and nature of our competition;changes in, and evolving interpretations of, existing and future laws, rules and regulations;changes in accounting principles, policies and guidelines;operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest and future pandemics;regulatory, litigation and reputational risks; andchanges 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, 2025, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. The forward-looking statements in this report were based on information, plans, and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.Supplemental Information - Explanation of Non-GAAP Financial 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 net income, 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 SubsidiariesCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited; Dollars in thousands)
Mar 31, 2026 vs.
Dec 31, 2025
Mar 31, 2026 vs.
Mar 31, 2025
Mar 31,
2026Dec 31,
2025Mar 31,
2025
$%
$%Assets:
Cash and due from banks$27,781$29,481$33,394
(1,700)(5.8 %)
($5,613)(16.8 %)Interest-earning deposits with correspondent banks 60,09061,37582,804
(1,285)(2.1)
(22,714)(27.4)Short-term investments12,31312,8784,041
(565)(4.4)
8,272204.7Mortgage loans held for sale, at fair value32,12735,83321,953
(3,706)(10.3)
10,17446.3Available for sale debt securities, at fair value911,958940,342917,545
(28,384)(3.0)
(5,587)(0.6)Federal Home Loan Bank stock, at cost28,27329,47338,899
(1,200)(4.1)
(10,626)(27.3)Loans:
Total loans5,014,8855,134,3885,096,210
(119,503)(2.3)
(81,325)(1.6)Less: allowance for credit losses on loans41,12637,23641,056
3,89010.4
700.2Net loans4,973,7595,097,1525,055,154
(123,393)(2.4)
(81,395)(1.6)Premises and equipment, net25,90025,40226,068
4982.0
(168)(0.6)Operating lease right-of-use assets35,85535,90436,048
(49)(0.1)
(193)(0.5)Investment in bank-owned life insurance116,010115,126107,546
8840.8
8,4647.9Goodwill63,90963,90963,909
——
——Identifiable intangible assets, net4,1484,3032,682
(155)(3.6)
1,46654.7Other assets167,073170,516195,972
(3,443)(2.0)
(28,899)(14.7)Total assets$6,459,196$6,621,694$6,586,015
($162,498)(2.5 %)
($126,819)(1.9 %)Liabilities:
Deposits:
Noninterest-bearing deposits$585,415$595,092$625,590
($9,677)(1.6 %)
($40,175)(6.4 %)Interest-bearing deposits4,579,2184,674,8984,414,991
(95,680)(2.0)
164,2273.7Total deposits5,164,6335,269,9905,040,581
(105,357)(2.0)
124,0522.5Federal Home Loan Bank advances576,000626,000850,000
(50,000)(8.0)
(274,000)(32.2)Junior subordinated debentures22,68122,68122,681
——
——Operating lease liabilities38,72438,72638,716
(2)—
8—Other liabilities110,385120,713112,357
(10,328)(8.6)
(1,972)(1.8)Total liabilities5,912,4236,078,1106,064,335
(165,687)(2.7)
(151,912)(2.5)Shareholders' Equity:
Common stock1,2231,2231,223
——
——Paid-in capital198,654198,323197,570
3310.2
1,0840.5Retained earnings444,508442,741435,233
1,7670.4
9,2752.1Accumulated other comprehensive loss(78,435)(79,309)(99,179)
874(1.1)
20,74420.9Treasury stock, at cost(19,177)(19,394)(13,167)
217(1.1)
(6,010)(45.6)Total shareholders' equity546,773543,584521,680
3,1890.6
25,0934.8Total liabilities and shareholders' equity$6,459,196$6,621,694$6,586,015
($162,498)(2.5 %)
($126,819)(1.9 %) Washington Trust Bancorp, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited; Dollars and shares in thousands, except per share amounts)
Q1 2026 vs. Q4 2025
Q1 2026 vs. Q1 2025
Q1 2026Q4 2025Q1 2025
$%
$%Interest income:
Interest and fees on loans$64,338$67,040$66,656
($2,702)(4.0 %)
($2,318)(3.5 %)Interest on mortgage loans held for sale375606958
(231)(38.1)
(583)(60.9)Taxable interest on debt securities8,7689,1008,827
(332)(3.6)
(59)(0.7)Nontaxable interest on debt securities787
(1)(12.5)
——Dividends on Federal Home Loan Bank stock5857921,022
(207)(26.1)
(437)(42.8)Other interest income9091,2911,993
(382)(29.6)
(1,084)(54.4)Total interest and dividend income74,98278,83779,463
(3,855)(4.9)
(4,481)(5.6)Interest expense:
Deposits27,37030,06031,748
(2,690)(8.9)
(4,378)(13.8)Federal Home Loan Bank advances6,7777,69610,946
(919)(11.9)
(4,169)(38.1)Junior subordinated debentures310333347
(23)(6.9)
(37)(10.7)Total interest expense34,45738,08943,041
(3,632)(9.5)
(8,584)(19.9)Net interest income40,52540,74836,422
(223)(0.5)
4,10311.3Provision for credit losses4,0006001,200
3,400566.7
2,800233.3Net interest income after provision for credit losses 36,52540,14835,222
(3,623)(9.0)
1,3033.7Noninterest income:
Wealth management revenues10,64710,8529,891
(205)(1.9)
7567.6Mortgage banking revenues3,0453,2502,304
(205)(6.3)
74132.2Card interchange fees1,3851,2171,509
16813.8
(124)(8.2)Service charges on deposit accounts785843744
(58)(6.9)
415.5Loan related derivative income2271,081101
(854)(79.0)
126124.8Income from bank-owned life insurance885886769
(1)(0.1)
11615.1Gain on sale of bank-owned properties, net ——6,994
——
(6,994)(100.0)Other income 329374331
(45)(12.0)
(2)(0.6)Total noninterest income17,30318,50322,643
(1,200)(6.5)
(5,340)(23.6)Noninterest expense:
Salaries and employee benefits24,34023,64722,422
6932.9
1,9188.6Outsourced services4,3834,0674,346
3167.8
370.9Net occupancy2,8902,6422,741
2489.4
1495.4Equipment903852891
516.0
121.3Legal, audit, and professional fees936667750
26940.3
18624.8FDIC deposit insurance costs9351,0281,262
(93)(9.0)
(327)(25.9)Advertising and promotion5471,029410
(482)(46.8)
13733.4Amortization of intangibles155155204
——
(49)(24.0)Pension plan settlement charge——6,436
——
(6,436)(100.0)Other expenses2,6763,8962,734
(1,220)(31.3)
(58)(2.1)Total noninterest expense37,76537,98342,196
(218)(0.6)
(4,431)(10.5)Income before income taxes16,06320,66815,669
(4,605)(22.3)
3942.5Income tax expense3,4634,6943,490
(1,231)(26.2)
(27)(0.8)Net income$12,600$15,974$12,179
($3,374)(21.1 %)
$4213.5 %
Weighted avg common shares outstanding - basic19,03919,03419,276
Weighted avg common shares outstanding - diluted19,17319,15919,370
Per share information:
Basic earnings per common share$0.66$0.84$0.63
($0.18)(21.4 %)
$0.034.8 %Diluted earnings per common share$0.66$0.83$0.63
($0.17)(20.5 %)
$0.034.8 %Cash dividends declared$0.56$0.56$0.56
$—— %
$—— % Washington Trust Bancorp, Inc. and SubsidiariesSELECTED FINANCIAL HIGHLIGHTS(Unaudited; Dollars and shares in thousands, except per share amounts)
Mar 31,
2026Dec 31,
2025Mar 31,
2025
Mar 31, 2026 vs.
Dec 31, 2025
Mar 31, 2026 vs.
Mar 31, 2025Share and Equity Related Data:
Book value per share$28.72$28.56$27.06
$0.160.6 %
$1.666.1 %Tangible book value per share (non-GAAP) (1)$25.14$24.97$23.61
$0.170.7 %
$1.536.5 %Market value per share$33.46$29.55$30.86
$3.9113.2 %
$2.608.4 %Shares issued at end of period19,56219,56219,562
— shs— %
— shs— %Shares outstanding at end of period19,04119,03519,276
6 shs— %
(235) shs(1.2 %)
Capital Ratios (2):
Tier 1 risk-based capital 12.46 %12.14 %12.23 %
32 bps
23 bps
Total risk-based capital 13.38 %12.95 %13.13 %
43 bps
25 bps
Tier 1 leverage ratio8.80 %8.65 %8.45 %
15 bps
35 bps
Common equity tier 111.99 %11.68 %11.76 %
31 bps
23 bps
Balance Sheet Ratios:
Equity to assets8.47 %8.21 %7.92 %
26 bps
55 bps
Tangible equity to tangible assets (non-GAAP) (1) 7.49 %7.25 %6.98 %
24 bps
51 bps
Loans to deposits (3)96.9 %97.4 %100.7 %
(50) bps
(380) bps
Q1 2026
Q1 2026Q4 2025Q1 2025
vs.
Q4 2025
(bps) vs.
Q1 2025
(bps)Performance Ratios (4):
Net interest margin (5)2.63 %2.56 %2.29 %
734
Return on average assets (6)0.78 %0.95 %0.73 %
(17)5Adjusted return on average assets (non-GAAP) (1) 0.78 %0.95 %0.71 %
(17)7Return on average tangible assets (non-GAAP) (1)0.79 %0.96 %0.71 %
(17)8
Return on average equity (7)9.23 %11.70 %9.63 %
(247)(40)Adjusted return on average equity (non-GAAP) (1)9.23 %11.70 %9.30 %
(247)(7)Return on average tangible equity (non-GAAP) (1)10.53 %13.39 %10.69 %
(286)(16)
Efficiency ratio (8)65.3 %64.1 %71.4 %
120(610)Adjusted efficiency ratio (non-GAAP) (1)65.3 %64.1 %68.7 %
120(340)
(1)See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.(2)Estimated for Mar 31, 2026 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 divided by average equity.(8)Total noninterest expense as percentage of total revenues (net interest income and noninterest income). Washington Trust Bancorp, Inc. and SubsidiariesSELECTED FINANCIAL HIGHLIGHTS(Unaudited; Dollars in thousands)
Q1 2026 vs. Q4 2025
Q1 2026 vs. Q1 2025
Q1 2026Q4 2025Q1 2025
$%
$%Wealth Management Results
Wealth Management Revenues:
Asset-based revenues$10,580$10,749$9,769
($169)(1.6 %)
$8118.3 %Transaction-based revenues67103122
(36)(35.0)
(55)(45.1)Total wealth management revenues$10,647$10,852$9,891
($205)(1.9 %)
$7567.6 %
Assets Under Administration (AUA):
Spot balance at end of period (1)$7,495,602$7,777,250$6,818,390
($281,648)(3.6 %)
$677,2129.9 %
Percentage of AUA that are managed assets91 %91 %91 %
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (2)$2,370$3,424$1,575
($1,054)(30.8 %)
$79550.5 %Changes in fair value, net (3)164(610)133
774126.9
3123.3Loan servicing fee income, net (4)511436596
7517.2
(85)(14.3)Total mortgage banking revenues$3,045$3,250$2,304
($205)(6.3 %)
$74132.2 %
Residential Mortgage Loan Originations:
Originations for retention in portfolio (5)$36,813$46,912$27,662
($10,099)(21.5 %)
$9,15133.1 %Originations for sale to secondary market (6) 118,351162,41075,519
(44,059)(27.1)
42,83256.7Total mortgage loan originations$155,164$209,322$103,181
($54,158)(25.9 %)
$51,98350.4 %
Percentage of originations for sale to total
mortgage loan originations76 %78 %73 %
Residential Mortgage Loans Sold:
Sold with servicing rights retained$4,670$7,461$16,819
($2,791)(37.4 %)
($12,149)(72.2 %)Sold with servicing rights released (6)116,853150,50758,680
(33,654)(22.4)
58,17399.1Total mortgage loans sold$121,523$157,968$75,499
($36,445)(23.1 %)
$46,02461.0 %
(1)Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025.(2)Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.(3)Represents fair value changes on mortgage loans held for sale and forward loan commitments.(4)Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.(5)Includes the full commitment amount of homeowner construction loans.(6)Includes brokered loans (loans originated for others). Washington Trust Bancorp, Inc. and SubsidiariesEND OF PERIOD LOAN COMPOSITION(Unaudited; Dollars in thousands)
Mar 31, 2026 vs.
Dec 31, 2025
Mar 31, 2026 vs.
Mar 31, 2025
Mar 31,
2026Dec 31,
2025Mar 31,
2025
$%
$%Loans:
Commercial real estate (1) $2,084,804$2,183,985$2,134,107
($99,181)(4.5 %)
($49,303)(2.3 %)Commercial & industrial568,177564,082535,030
4,0950.7
33,1476.2Total commercial2,652,9812,748,0672,669,137
(95,086)(3.5)
(16,156)(0.6)
Residential real estate (2)2,029,0922,050,3992,113,307
(21,307)(1.0)
(84,215)(4.0)
Home equity316,353318,862296,563
(2,509)(0.8)
19,7906.7Other16,45917,06017,203
(601)(3.5)
(744)(4.3)Total consumer332,812335,922313,766
(3,110)(0.9)
19,0466.1Total loans$5,014,885$5,134,388$5,096,210
($119,503)(2.3 %)
($81,325)(1.6 %)
(1)Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.(2)Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties. Washington Trust Bancorp, Inc. and SubsidiariesEND OF PERIOD LOAN COMPOSITION(Unaudited; Dollars in thousands)
Mar 31, 2026
Dec 31, 2025
Balance Change
Balance% of Total
Balance% of Total
$%Commercial Real Estate Portfolio Segmentation:
Multi-family$639,97631 %
$667,38831 %
($27,412)(4.1 %)Retail407,02920
436,96120
(29,932)(6.9)Industrial and warehouse 339,83916
380,40317
(40,564)(10.7)Hospitality242,22912
230,54911
11,6805.1Office 231,00711
237,70611
(6,699)(2.8)Healthcare Facility156,1387
156,8717
(733)(0.5)Mixed-use 27,4591
26,4401
1,0193.9Other41,1272
47,6672
(6,540)(13.7)Total commercial real estate loans$2,084,804100 %
$2,183,985100 %
($99,181)(4.5 %)
Commercial & Industrial Portfolio Segmentation:
Healthcare and social assistance$149,29226 %
$150,06127 %
($769)(0.5 %)Retail trade62,86611
48,2899
14,57730.2Transportation and warehousing55,86410
55,31510
5491.0Educational services53,8319
54,24510
(414)(0.8)Accommodation and food services32,9826
26,4315
6,55124.8Finance and insurance26,8345
22,7274
4,10718.1Manufacturing25,5404
23,7144
1,8267.7Arts, entertainment, and recreation24,9474
22,0434
2,90413.2Information 21,6814
21,8434
(162)(0.7)Real estate rental and leasing20,0094
57,11310
(37,104)(65.0)Professional, scientific, and technical services19,6253
12,4902
7,13557.1Public administration 6,1631
1,448—
4,715325.6Other68,54313
68,36311
1800.3Total commercial & industrial loans$568,177100 %
$564,082100 %
$4,0950.7 %
Weighted Average
Asset Quality
Supplemental
- Nonaccrual
(included in
Classified)
Balance
(2) (3)Average
Loan
Size (4)Loan to
ValueDebt
Service
Coverage
PassSpecial
MentionClassified
Non-Owner Occupied Commercial Real
Estate Office (inclusive of Construction):
Class A$85,054$10,67359 %1.59x
$56,580$—$28,474
$22,349Class B70,7763,53954 %1.48x
67,0033,773—
—Class C10,4161,48856 %1.35x
10,416——
—Medical Office30,6666,13356 %1.54x
30,666——
—Lab Space34,09518,289103 %—x
—27,5216,574
6,574Total office at Mar 31, 2026 (1)$231,007$5,56764 %1.29x
$164,665$31,294$35,048
$28,923Total office at Dec 31, 2025$237,706$5,61160 %1.27x
$173,837$57,712$6,157
$—Mar 31, 2026 vs. Dec 31, 2025($6,699)($44)4 %0.02x
($9,172)($26,418)$28,891
$28,923
(1)Approximately 65% of the total commercial real estate office balance of $231 million is secured by income producing properties located in suburban areas. Additionally, approximately 59% of the total commercial real estate office balance is scheduled to mature before Mar 31, 2028.(2)Balance of commercial real estate office consists of 42 loans as of Mar 31, 2026.(3)Does not include $2.8 million of unfunded commitments as of Mar 31, 2026.(4)Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans. Washington Trust Bancorp, Inc. and SubsidiariesEND OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY(Unaudited; Dollars in thousands)
Mar 31, 2026 vs.
Dec 31, 2025
Mar 31, 2026 vs.
Mar 31, 2025
Mar 31,
2026Dec 31,
2025Mar 31,
2025
$%
$%Deposits:
Noninterest-bearing demand deposits$585,415$595,092$625,590
($9,677)(1.6 %)
($40,175)(6.4 %)Interest-bearing demand deposits (in-market) 758,524756,794654,599
1,7300.2
103,92515.9NOW accounts690,987715,114686,666
(24,127)(3.4)
4,3210.6Money market accounts1,132,4211,185,4201,202,703
(52,999)(4.5)
(70,282)(5.8)Savings accounts830,855796,887630,413
33,9684.3
200,44231.8Time deposits (in-market)1,166,4311,220,6831,213,382
(54,252)(4.4)
(46,951)(3.9)In-market deposits5,164,6335,269,9905,013,353
(105,357)(2.0)
151,2803.0Wholesale brokered time deposits——27,228
——
(27,228)(100.0)Total deposits$5,164,633$5,269,990$5,040,581
($105,357)(2.0 %)
$124,0522.5 %
Mar 31,
2026
Dec 31,
2025
Mar 31, 2026 vs.
Dec 31, 2025Contingent Liquidity:
Federal Home Loan Bank of Boston $1,392,049
$1,356,005
$36,0442.7 %Federal Reserve Bank of Boston99,775
104,379
(4,604)(4.4)Available cash liquidity (1)16,088
17,460
(1,372)(7.9)Unencumbered securities528,317
539,830
(11,513)(2.1)Total$2,036,229
$2,017,674
$18,5550.9 %
(1)Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs. Washington Trust Bancorp, Inc. and SubsidiariesCREDIT & ASSET QUALITY DATA(Unaudited; Dollars in thousands)
Mar 31, 2026 vs.
Mar 31,
2026Dec 31,
2025Mar 31,
2025
Dec 31,
2025
(bps)Mar 31,
2025
(bps)Asset Quality Ratios:
Nonperforming assets to total assets
0.63 %0.20 %0.33 %
4330Nonaccrual loans to total loans
0.81 %0.25 %0.42 %
5639Total past due loans to total loans
0.33 %0.22 %0.20 %
1113ACL on loans to nonaccrual loans
101.70 %288.14 %189.85 %
(18,644)(8,815)ACL on loans to total loans
0.82 %0.73 %0.81 %
91
Mar 31, 2026 vs.
Dec 31, 2025
Mar 31, 2026 vs.
Mar 31, 2025
Mar 31,
2026Dec 31,
2025Mar 31,
2025
$%
$%Nonperforming Assets:
Commercial real estate$28,923$—$7,605
$28,923— %
$21,318280.3 %Commercial & industrial126—1,140
126—
(1,014)(88.9)Total commercial29,049—8,745
29,049—
20,304232.2Residential real estate9,63111,09911,102
(1,468)(13.2)
(1,471)(13.2)Home equity 1,7571,8241,779
(67)(3.7)
(22)(1.2)Other consumer3——
3—
3—Total consumer1,7601,8241,779
(64)(3.5)
(19)(1.1)Total nonaccrual loans40,44012,92321,626
27,517212.9
18,81487.0Other real estate owned———
——
——Total nonperforming assets$40,440$12,923$21,626
$27,517212.9 %
$18,81487.0 %
Past Due Loans (30 days or more past due):
Commercial real estate$6,574$648$—
$5,926914.5 %
$6,574100.0 %Commercial & industrial47071,146
4636,614.3
(676)(59.0)Total commercial7,0446551,146
6,389975.4
5,898514.7Residential real estate6,6279,0956,439
(2,468)(27.1)
1882.9Home equity2,7461,6072,578
1,13970.9
1686.5Other consumer312632
519.2
(1)(3.1)Total consumer2,7771,6332,610
1,14470.1
1676.4Total past due loans$16,448$11,383$10,195
$5,06544.5 %
$6,25361.3 %
Accruing loans 90 days or more past due$—$—$—
$—— %
$—— %Nonaccrual loans included in past due loans$12,297$8,348$7,354
$3,94947.3 %
$4,94367.2 % Washington Trust Bancorp, Inc. and SubsidiariesCREDIT & ASSET QUALITY DATA(Unaudited; Dollars in thousands)
For the Three Months Ended
Mar 31,
2026Dec 31,
2025Mar 31,
2025Nonaccrual Loan Activity:
Balance at beginning of period$12,923$14,016$23,307Additions to nonaccrual status29,0641,8512,142Loans returned to accruing status(69)(1,229)(4)Loans charged-off(84)(87)(2,522)Loans transferred to other real estate owned———Payments, payoffs, and other changes(1,394)(1,628)(1,297)Balance at end of period$40,440$12,923$21,626
Allowance for Credit Losses on Loans:
Balance at beginning of period$37,236$36,576$41,960Provision for credit losses on loans (1)3,9005001,400Charge-offs(84)(87)(2,522)Recoveries74247218Balance at end of period$41,126$37,236$41,056
Allowance for Credit Losses on Unfunded Commitments:
Balance at beginning of period$1,140$1,040$1,440Provision for credit losses on unfunded commitments (1) 100100(200)Balance at end of period (2)$1,240$1,140$1,240
(1)Included in provision for credit losses in the Consolidated Statements of Income.(2)Included in other liabilities in the Consolidated Balance Sheets. Washington Trust Bancorp, Inc. and SubsidiariesCREDIT & ASSET QUALITY DATA(Unaudited; Dollars in thousands)
Q1 2026 vs. Q4 2025
Q1 2026 vs. Q1 2025
Q1 2026Q4 2025Q1 2025
$%
$%Provision for Credit Losses:
Provision for credit losses on loans$3,900$500$1,400
$3,400680.0 %
$2,500178.6 %Provision for credit losses on unfunded commitments 100100(200)
——
300150.0Provision for credit losses$4,000$600$1,200
$3,400566.7 %
$2,800233.3 %
Net Loan Charge-Offs (Recoveries):
Commercial real estate$—($118)$2,250
$118100.0 %
($2,250)(100.0 %)Commercial & industrial(42)(111)3
6962.2
(45)(1500.0)Total commercial(42)(229)2,253
18781.7
(2,295)(101.9)Residential real estate(1)——
(1)—
(1)—Home equity(1)(1)(1)
——
——Other consumer547052
(16)(22.9)
23.8Total consumer536951
(16)(23.2)
23.9Total$10($160)$2,304
$170106.3 %
($2,294)(99.6 %) Washington Trust Bancorp, Inc. and SubsidiariesCONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)(Unaudited; Dollars in thousands)
The following table presents 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. 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 are included in amounts presented for loans. Interest income attributable to nonaccrual loans is included in
accordance with accounting policy as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
For the Three Months EndedMar 31, 2026
Dec 31, 2025
Change
Average
BalanceInterestYield/Rate
Average
BalanceInterestYield/Rate
Average
BalanceInterestYield/Rate
Assets:
Cash, federal funds sold, and short-term
investments$101,091$9093.65 %
$131,215$1,2913.90 %
($30,124)($382)(0.25 %)Mortgage loans held for sale24,7603756.14
38,6966066.21
(13,936)(231)(0.07)Taxable debt securities1,022,6128,7683.48
1,051,5499,1003.43
(28,937)(332)0.05Nontaxable debt securities65084.99
65084.88
——0.11Total securities1,023,2628,7763.48
1,052,1999,1083.43
(28,937)(332)0.05FHLB stock30,5665857.76
32,9187929.55
(2,352)(207)(1.79)Commercial real estate2,148,79228,7185.42
2,148,05230,7245.67
740(2,006)(0.25)Commercial & industrial571,4987,9215.62
561,0358,2925.86
10,463(371)(0.24)Total commercial2,720,29036,6395.46
2,709,08739,0165.71
11,203(2,377)(0.25)Residential real estate2,035,59722,7234.53
2,062,58922,8294.39
(26,992)(106)0.14Home equity316,6604,9316.32
313,7595,1946.57
2,901(263)(0.25)Other16,5892155.26
16,7642165.11
(175)(1)0.15Total consumer333,2495,1466.26
330,5235,4106.49
2,726(264)(0.23)Total loans5,089,13664,5085.14
5,102,19967,2555.23
(13,063)(2,747)(0.09)Total interest-earning assets6,268,81575,1534.86
6,357,22779,0524.93
(88,412)(3,899)(0.07)Noninterest-earning assets297,871
290,006
7,865
Total assets$6,566,686
$6,647,233
($80,547)
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits (in-market)$748,233$5,8893.19 %
$734,617$6,3753.44 %
$13,616($486)(0.25 %)NOW accounts676,2402590.16
671,8403480.21
4,400(89)(0.05)Money market accounts1,162,6097,7882.72
1,198,8188,8462.93
(36,209)(1,058)(0.21)Savings accounts810,0403,4181.71
757,8433,4561.81
52,197(38)(0.10)Time deposits (in-market)1,190,41410,0163.41
1,225,77911,0353.57
(35,365)(1,019)(0.16)Interest-bearing in-market deposits4,587,53627,3702.42
4,588,89730,0602.60
(1,361)(2,690)(0.18)Wholesale brokered time deposits———
———
———Total interest-bearing deposits4,587,53627,3702.42
4,588,89730,0602.60
(1,361)(2,690)(0.18)FHLB advances660,6676,7774.16
708,1747,6964.31
(47,507)(919)(0.15)Junior subordinated debentures22,6813105.54
22,6813335.82
—(23)(0.28)Total interest-bearing liabilities5,270,88434,4572.65
5,319,75238,0892.84
(48,868)(3,632)(0.19)Noninterest-bearing demand deposits604,302
647,274
(42,972)
Other liabilities138,126
138,742
(616)
Shareholders' equity553,374
541,465
11,909
Total liabilities and shareholders' equity$6,566,686
$6,647,233
($80,547)
Net interest income (FTE)
$40,696
$40,963
($267)
Interest rate spread
2.21 %
2.09 %
0.12 %Net interest margin
2.63 %
2.56 %
0.07 % Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Three Months Ended Mar 31, 2026Dec 31, 2025
ChangeCommercial loans$168$214
($46)Nontaxable debt securities1—
1Total$169$214
($45) Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL 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, and adjusted net income:
Q1 2026 vs. Q4 2025
Q1 2026 vs. Q1 2025
Q1 2026Q4 2025Q1 2025
$%
$%Adjusted Noninterest Income:
Noninterest income, as reported$17,303$18,503$22,643
($1,200)(6.5 %)
($5,340)(23.6 %)Less adjustments:
Gain on sale of bank-owned properties, net——6,994
——
(6,994)(100.0)Adjusted noninterest income (non-GAAP)$17,303$18,503$15,649
($1,200)(6.5 %)
$1,65410.6 %
Adjusted Noninterest Expense:
Noninterest expense, as reported$37,765$37,983$42,196
($218)(0.6 %)
($4,431)(10.5 %)Less adjustments:
Pension plan settlement charge——6,436
——
(6,436)(100.0)Adjusted noninterest expense (non-GAAP)$37,765$37,983$35,760
($218)(0.6 %)
$2,0055.6 %
Adjusted Income Before Income Taxes:
Income before income taxes$16,063$20,668$15,669
($4,605)(22.3 %)
$3942.5 %Less: total adjustments, pre-tax——558
——
(558)(100.0)Adjusted income before income taxes (non-GAAP)$16,063$20,668$15,111
($4,605)(22.3 %)
$9526.3 %
Adjusted Income Tax Expense:
Income tax expense, as reported$3,463$4,694$3,490
($1,231)(26.2 %)
($27)(0.8 %)Less: tax on total adjustments——141
——
(141)(100.0)Adjusted income tax expense (non-GAAP)$3,463$4,694$3,349
($1,231)(26.2 %)
$1143.4 %
Adjusted Net Income:
Net income, as reported$12,600$15,974$12,179
($3,374)(21.1 %)
$4213.5 %Less: total adjustments, after-tax——417
——
(417)(100.0)Adjusted net income (non-GAAP)$12,600$15,974$11,762
($3,374)(21.1 %)
$8387.1 % Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL 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:
Q1 2026Q4 2025Q1 2025
Q1 2026 vs. Q4 2025
Q1 2026 vs. Q1 2025Adjusted Diluted Earnings per Common Share:
Diluted earnings per common share, as reported (1) $0.66$0.83$0.63
($0.17)(20.5 %)
$0.034.8 %Less: impact of total adjustments——0.02
——
(0.02)(100.0)Adjusted diluted earnings per common share (non-GAAP) (2)$0.66$0.83$0.61
($0.17)(20.5 %)
$0.058.2 %
Adjusted Efficiency Ratio:
Efficiency ratio, as reported (3)65.3 %64.1 %71.4 %
120 bps
(610) bps
Less: impact of total adjustments——2.7
— bps
(270) bps
Adjusted efficiency ratio (non-GAAP) (4)65.3 %64.1 %68.7 %
120 bps
(340) bps
(1)Net income divided by weighted average diluted common and potential shares outstanding.(2)Net income, 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:
Q1 2026Q4 2025Q1 2025
Q1 2026 vs. Q4 2025
Q1 2026 vs. Q1 2025Adjusted Return on Average Assets:
Net income, as reported$12,600$15,974$12,179
($3,374)(21.1 %)
$4213.5 %Less: total adjustments, after-tax——417
——
(417)(100.0)Adjusted net income (non-GAAP)$12,600$15,974$11,762
($3,374)(21.1 %)
$8387.1 %
Total average assets, as reported$6,566,686$6,647,233$6,765,057
($80,547)(1.2 %)
($198,371)(2.9 %)
Return on average assets (1)0.78 %0.95 %0.73 %
(17) bps
5 bps
Adjusted return on average assets (non-GAAP) (2)0.78 %0.95 %0.71 %
(17) bps
7 bps
Return on Average Tangible Assets:
Adjusted net income (non-GAAP)$12,600$15,974$11,762
($3,374)(21.1 %)
$8387.1 %
Total average assets, as reported$6,566,686$6,647,233$6,765,057
($80,547)(1.2 %)
($198,371)(2.9 %)Less average balances of:
Goodwill63,90963,90963,909
——
——Identifiable intangible assets, net4,2244,3782,781
(154)(3.5)
1,44351.9Total average tangible assets$6,498,553$6,578,946$6,698,367
($80,393)(1.2 %)
($199,814)(3.0 %)
Return on average assets (1)0.78 %0.95 %0.73 %
(17) bps
5 bps
Return on average tangible assets (non-GAAP) (3) 0.79 %0.96 %0.71 %
(17) bps
8 bps
(1)Net income divided by total average assets.(2)Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets.(3)Net income, 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 SubsidiariesSUPPLEMENTAL 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:
Q1 2026Q4 2025Q1 2025
Q1 2026 vs. Q4 2025
Q1 2026 vs. Q1 2025Adjusted Return on Average Equity:
Net income, as reported$12,600$15,974$12,179
($3,374)(21.1 %)
$4213.5 %Less: total adjustments, after-tax——417
——
(417)(100.0)Adjusted net income (non-GAAP)$12,600$15,974$11,762
($3,374)(21.1 %)
$8387.1 %
Total average equity, as reported$553,374$541,465$513,048
$11,9092.2 %
$40,3267.9 %
Return on average equity (1)9.23 %11.70 %9.63 %
(247) bps
(40) bps
Adjusted return on average equity (non-GAAP) (2)9.23 %11.70 %9.30 %
(247) bps
(7) bps
Return on Average Tangible Equity:
Adjusted net income (non-GAAP)$12,600$15,974$11,762
($3,374)(21.1 %)
$8387.1 %
Total average equity, as reported$553,374$541,465$513,048
$11,9092.2 %
$40,3267.9 %Less average balances of:
Goodwill63,90963,90963,909
——
——Identifiable intangible assets, net4,2244,3782,781
(154)(3.5)
1,44351.9Total average tangible equity (non-GAAP)$485,241$473,178$446,358
$12,0632.5 %
$38,8838.7 %
Return on average equity (1)9.23 %11.70 %9.63 %
(247) bps
(40) bps
Return on average tangible equity (non-GAAP) (3)10.53 %13.39 %10.69 %
(286) bps
(16) bps
(1)Net income divided by total average equity.(2)Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.(3)Net income, 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 SubsidiariesSUPPLEMENTAL 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:
Mar 31,
2026Dec 31,
2025Mar 31,
2025
Mar 31, 2026 vs.
Dec 31, 2025
Mar 31, 2026 vs.
Mar 31, 2025Tangible Book Value per Share:
Total shareholders' equity, as reported$546,773$543,584$521,680
$3,1890.6 %
$25,0934.8 %Less end of period balances of:
Goodwill63,90963,90963,909
—— %
—— %Identifiable intangible assets, net4,1484,3032,682
(155)(3.6) %
1,46654.7 %Total tangible shareholders' equity (non-GAAP)$478,716$475,372$455,089
$3,3440.7 %
$23,6275.2 %
Shares outstanding, as reported19,04119,03519,276
6— %
(235)(1.2 %)
Book value per share$28.72$28.56$27.06
$0.160.6 %
$1.666.1 %Tangible book value per share (non-GAAP)$25.14$24.97$23.61
$0.170.7 %
$1.536.5 %
Tangible Equity to Tangible Assets:
Total tangible shareholders' equity$478,716$475,372$455,089
$3,3440.7 %
$23,6275.2 %
Total assets, as reported$6,459,196$6,621,694$6,586,015
($162,498)(2.5 %)
($126,819)(1.9 %)Less end of period balances of:
Goodwill63,90963,90963,909
—— %
—— %Identifiable intangible assets, net4,1484,3032,682
(155)(3.6 %)
1,46654.7 %Total tangible assets (non-GAAP)$6,391,139$6,553,482$6,519,424
($162,343)(2.5 %)
($128,285)(2.0 %)
Equity to assets8.47 %8.21 %7.92 %
26 bps
55 bps
Tangible equity to tangible assets (non-GAAP)7.49 %7.25 %6.98 %
24 bps
51 bps
Category: Earnings
View original content to download multimedia:https://www.prnewswire.com/news-releases/washington-trust-reports-first-quarter-2026-results-302747543.htmlSOURCE Washington Trust Bancorp, Inc.
Original: Washington Trust Reports First Quarter 2026 Results
US Market News
5月前
Washington Trust Reports Strong Fourth Quarter and Full-Year 2025 ResultsJanuary 28, 2026 4:05 PM
PR Newswire (US)
WESTERLY, R.I., Jan. 28, 2026 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH) ("Washington Trust" or the "Corporation"), today reported fourth quarter 2025 net income of $16.0 million, or $0.83 per diluted share, up from $10.8 million, or $0.56 per diluted share, for the preceding quarter. Full-year 2025 net income totaled $52.2 million, or $2.71 per diluted share, compared to a net loss of $28.1 million, or a $1.63 loss per diluted share, for 2024. Excluding the impact of previously disclosed infrequent transactions from both periods, full-year 2025 adjusted net income (non-GAAP) totaled $51.8 million, or $2.69 per diluted share, compared to adjusted net income (non-GAAP) of $40.9 million, or $2.37 per diluted share, for 2024.
"Our fourth quarter results reflect continued earnings momentum and improving profitability, with year-over-year performance supported by margin expansion, strong in-market deposit growth, and increases in wealth management and mortgage banking revenues," said Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III. "As we enter 2026, the addition of resources in our commercial and wealth management business lines, including the recently announced dedicated institutional banking team, positions us well for sustainable growth."FOURTH QUARTER HIGHLIGHTS (Q4 2025 vs. Q3 2025, unless otherwise noted):The net interest margin was 2.56%, up by 16 basis points. Full-year 2025 net interest margin was 2.40%, up by 53 basis points from 2024.The provision for credit losses normalized to $600 thousand, and asset quality metrics improved.Wealth management revenues increased by 5%.Mortgage loan originations and sales increased 21% and 25%, respectively.Loan balances were stable at $5.1 billion.In-market deposits (total deposits less wholesale brokered deposits) were up by 1% from September 30, 2025 and 9% from December 31, 2024.Capital ratios remained strong, with a total risk-based capital ratio of 12.95% at December 31, 2025.RESULTS OF OPERATIONS (Q4 2025 vs. Q3 2025, unless otherwise noted):Net Interest IncomeNet interest income was $40.7 million, up by $1.9 million, or 5%, and the net interest margin was 2.56%, up by 16 basis points. This was supported by lower funding costs and included an increase in loan prepayment income.Commercial loan prepayment fee income was $516 thousand (a 3 basis point benefit to net interest margin).Average interest-earning assets decreased by $93 million, due to decreases in loans and securities. The yield was 4.93%, down by 6 basis points.Average interest-bearing liabilities decreased by $104 million, due to decreases in wholesale funding balances, partially offset by growth in in-market deposits. The rate was 2.84%, down by 24 basis points.Noninterest IncomeNoninterest income was $18.5 million, up by $867 thousand, or 5%.Wealth management revenues amounted to $10.9 million, up by $479 thousand, or 5%. Average assets under administration ("AUA") increased by 4%.Mortgage banking revenues totaled $3.3 million, down by $251 thousand, or 7%, as increases in gains on sales were offset by changes in fair value on mortgage loans held for sale and forward loan commitments. The change in fair value reflects seasonality in the loan pipeline. Mortgage banking revenues increased by 14% compared to the fourth quarter of 2024.Loan related derivative income totaled $1.1 million, up by $810 thousand.Noninterest ExpenseNoninterest expense totaled $38.0 million, up by $2.3 million, or 6%.Salaries and employee benefits expense amounted to $23.6 million, up by $973 thousand, or 4%, reflecting higher levels of performance- and volume-based compensation, as well as increased staffing.Other noninterest expenses totaled $3.9 million, up by $1.3 million, or 51%, largely due to a $1.0 million contribution made by Washington Trust to its charitable foundation.Income TaxIncome tax expense totaled $4.7 million, up by $1.6 million. The effective tax rate was 22.7%, compared to 22.2%. The Corporation expects its full-year 2026 effective tax rate to be approximately 22.0%.FINANCIAL CONDITION (Dec 31, 2025 vs. Sep 30, 2025, unless otherwise noted):Investment SecuritiesThe securities portfolio totaled $940 million, down by $22 million, or 2%, and remained at 14% of total assets.LoansTotal loans amounted to $5.1 billion, up by $12 million.Commercial loans increased by $23 million, or 1%.Residential real estate loans decreased by $23 million, or 1%.Consumer loans increased by $12 million, or 4%.Deposits and BorrowingsTotal deposits amounted to $5.3 billion, up by $47 million, or 1%. There were no wholesale brokered deposits at the end of either period. FHLB advances totaled $626 million, down by $165 million, or 21%.Contingent liquidity amounted to $2.0 billion at the end of 2025 and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.Capital and DividendsTotal shareholders' equity was $543.6 million, up by $10.6 million, or 2%, reflecting net income and improvement in accumulated other comprehensive loss, which were offset, in part, by quarterly dividend declarations and a net increase in treasury stock.In the fourth quarter, the Corporation repurchased 20,855 shares of its common stock, at an average price of $27.03 and a total cost of $564 thousand, under its stock repurchase program.The Board of Directors declared a quarterly dividend of 56 cents per share for fourth quarter. The dividend was paid on January 14, 2026 to shareholders of record on January 2, 2026.Capital levels exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.95%, compared to 12.90%.Book value per share was $28.56, compared to $27.98.ASSET QUALITY (Dec 31, 2025 vs. Sep 30, 2025, unless otherwise noted):Credit quality metrics improved in the fourth quarter, with reductions in nonaccrual loans and net charge-offs.Nonaccrual loans were $12.9 million, or 0.25% of total loans, down from $14.0 million, or 0.27%, and consisted entirely of residential and consumer loans.Past due loans were $11.4 million, or 0.22% of total loans, up from $8.1 million, or 0.16%, and included $655 thousand of commercial loans and $10.7 million of residential and consumer loans.The Corporation recorded $160 thousand of net recoveries in the fourth quarter, compared to net charge-offs of $11.4 million in the preceding quarter. The provision for credit losses normalized and totaled $600 thousand in the fourth quarter, compared to $6.8 million in the third quarter.The allowance for credit losses ("ACL") on loans amounted to $37.2 million, or 0.73% of total loans, compared to $36.6 million, or 0.71%.Conference CallWashington Trust will host a conference call to discuss its fourth quarter results, business highlights, and outlook on Thursday, January 29, 2026 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 58400. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay Access Code 478781. The audio replay will be available through February 12, 2026. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, https://ir.washtrust.com, and will be available through March 31, 2026.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 tariffs, inflation, potential U.S government shutdowns, and concerns about liquidity) on a national basis and in the local markets in which we operate;interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;changes in customer behavior due to political, business and economic conditions;changes in loan demand and collectability;the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments;ongoing volatility in national and international financial markets;reductions in the market value or outflows of wealth management AUA;decreases in the value of securities and other assets;increases in defaults and charge-off rates;changes in the size and nature of our competition;changes in, and evolving interpretations of, existing and future laws, rules and regulations;changes in accounting principles, policies and guidelines;operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest and future pandemics;regulatory, litigation and reputational risks; andchanges in the assumptions used in making such forward-looking statements.In addition, the factors described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. The forward-looking statements in this report were based on information, plans, and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.Supplemental Information - Explanation of Non-GAAP Financial 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 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 SubsidiariesCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited; Dollars in thousands)
Dec 31, 2025 vs.
Sep 30, 2025
Dec 31, 2025 vs.
Dec 31, 2024
Dec 31,
2025Sep 30,
2025Dec 31,
2024
$%
$%Assets:
Cash and due from banks$29,481$35,604$21,534
(6,123)(17.2 %)
$7,94736.9 %Interest-earning deposits with correspondent banks61,375143,88688,368
(82,511)(57.3)
(26,993)(30.5)Short-term investments12,87812,8413,987
370.3
8,891223.0Mortgage loans held for sale, at fair value35,83331,31821,708
4,51514.4
14,12565.1Mortgage loans held for sale, at lower of cost or market——281,706
——
(281,706)(100.0)Premises and equipment held for sale, lower of cost or
market——4,788
——
(4,788)(100.0)Available for sale debt securities, at fair value940,342962,466916,305
(22,124)(2.3)
24,0372.6Federal Home Loan Bank stock, at cost29,47336,33149,817
(6,858)(18.9)
(20,344)(40.8)Loans:
Total loans5,134,3885,122,5825,137,838
11,8060.2
(3,450)(0.1)Less: allowance for credit losses on loans37,23636,57641,960
6601.8
(4,724)(11.3)Net loans5,097,1525,086,0065,095,878
11,1460.2
1,274—Premises and equipment, net25,40225,06526,873
3371.3
(1,471)(5.5)Operating lease right-of-use assets35,90435,96826,943
(64)(0.2)
8,96133.3Investment in bank-owned life insurance115,126114,240106,777
8860.8
8,3497.8Goodwill63,90963,90963,909
——
——Identifiable intangible assets, net4,3034,4582,885
(155)(3.5)
1,41849.2Other assets170,516165,829219,169
4,6872.8
(48,653)(22.2)Total assets$6,621,694$6,717,921$6,930,647
($96,227)(1.4 %)
($308,953)(4.5 %)Liabilities:
Deposits:
Noninterest-bearing deposits$595,092$671,309$661,776
($76,217)(11.4 %)
($66,684)(10.1 %)Interest-bearing deposits4,674,8984,551,5274,454,024
123,3712.7
220,8745.0Total deposits5,269,9905,222,8365,115,800
47,1540.9
154,1903.0Federal Home Loan Bank advances626,000791,0001,125,000
(165,000)(20.9)
(499,000)(44.4)Junior subordinated debentures22,68122,68122,681
——
——Operating lease liabilities38,72638,74129,578
(15)—
9,14830.9Other liabilities120,713109,642137,860
11,07110.1
(17,147)(12.4)Total liabilities6,078,1106,184,9006,430,919
(106,790)(1.7)
(352,809)(5.5)Shareholders' Equity:
Common stock1,2231,2231,223
——
——Paid-in capital198,323198,058196,947
2650.1
1,3760.7Retained earnings442,741437,545434,014
5,1961.2
8,7272.0Accumulated other comprehensive loss(79,309)(84,828)(119,171)
5,519(6.5)
39,86233.4Treasury stock, at cost(19,394)(18,977)(13,285)
(417)2.2
(6,109)(46.0)Total shareholders' equity543,584533,021499,728
10,5632.0
43,8568.8Total liabilities and shareholders' equity$6,621,694$6,717,921$6,930,647
($96,227)(1.4 %)
($308,953)(4.5 %) Washington Trust Bancorp, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited; Dollars and shares in thousands, except per share amounts)
Q4 2025 vs. Q3 2025
Q4 2025 vs. Q4 2024
Q4 2025Q3 2025Q4 2024
$%
$%Interest income:
Interest and fees on loans$67,040$68,785$71,432
($1,745)(2.5 %)
($4,392)(6.1 %)Interest on mortgage loans held for sale606542762
6411.8
(156)(20.5)Taxable interest on debt securities9,1009,3727,015
(272)(2.9)
2,08529.7Nontaxable interest on debt securities878
114.3
——Dividends on Federal Home Loan Bank stock7927641,312
283.7
(520)(39.6)Other interest income1,2911,4751,310
(184)(12.5)
(19)(1.5)Total interest and dividend income78,83780,94581,839
(2,108)(2.6)
(3,002)(3.7)Interest expense:
Deposits30,06031,22334,135
(1,163)(3.7)
(4,075)(11.9)Federal Home Loan Bank advances7,69610,54214,388
(2,846)(27.0)
(6,692)(46.5)Junior subordinated debentures333347380
(14)(4.0)
(47)(12.4)Total interest expense38,08942,11248,903
(4,023)(9.6)
(10,814)(22.1)Net interest income40,74838,83332,936
1,9154.9
7,81223.7Provision for credit losses6006,8001,000
(6,200)(91.2)
(400)(40.0)Net interest income after provision for credit losses40,14832,03331,936
8,11525.3
8,21225.7Noninterest income (loss):
Wealth management revenues10,85210,37310,049
4794.6
8038.0Mortgage banking revenues3,2503,5012,848
(251)(7.2)
40214.1Card interchange fees1,2171,1631,255
544.6
(38)(3.0)Service charges on deposit accounts843841794
20.2
496.2Loan related derivative income1,0812718
810298.9
1,07313,412.5Income from bank-owned life insurance886868779
182.1
10713.7Realized losses on securities, net——(31,047)
——
31,047100.0Losses on sale of portfolio loans, net——(62,888)
——
62,888100.0Other income 374619310
(245)(39.6)
6420.6Total noninterest income (loss)18,50317,636(77,892)
8674.9
96,395123.8Noninterest expense:
Salaries and employee benefits23,64722,67421,875
9734.3
1,7728.1Outsourced services4,0674,1204,197
(53)(1.3)
(130)(3.1)Net occupancy2,6422,6912,428
(49)(1.8)
2148.8Equipment852917936
(65)(7.1)
(84)(9.0)Legal, audit, and professional fees667719845
(52)(7.2)
(178)(21.1)FDIC deposit insurance costs1,0281,0551,266
(27)(2.6)
(238)(18.8)Advertising and promotion1,029763560
26634.9
46983.8Amortization of intangibles155200204
(45)(22.5)
(49)(24.0)Other expenses3,8962,5871,981
1,30950.6
1,91596.7Total noninterest expense37,98335,72634,292
2,2576.3
3,69110.8Income (loss) before income taxes20,66813,943(80,248)
6,72548.2
100,916125.8Income tax expense (benefit)4,6943,097(19,457)
1,59751.6
24,151124.1Net income (loss)$15,974$10,846($60,791)
$5,12847.3 %
$76,765126.3 %
Net income (loss) available to common shareholders$15,974$10,846($60,776)
Weighted avg common shares outstanding - basic19,03419,12817,452
Weighted avg common shares outstanding - diluted19,15919,24317,452
Per share information:
Basic earnings per common share$0.84$0.57($3.48)
$0.2747.4 %
$4.32(124.1 %)Diluted earnings per common share$0.83$0.56($3.48)
$0.2748.2 %
$4.31(123.9 %)Cash dividends declared$0.56$0.56$0.56
$—— %
$—— % Washington Trust Bancorp, Inc. and SubsidiariesCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited; Dollars and shares in thousands, except per share amounts)
ChangeFor the Year Ended Dec 31,
20252024
$%Interest income:
Interest and fees on loans$269,826$299,297
($29,471)(9.8 %)Interest on mortgage loans held for sale2,5481,775
77343.5Taxable interest on debt securities36,52927,850
8,67931.2Nontaxable interest on debt securities308
22275.0Dividends on Federal Home Loan Bank stock3,3704,771
(1,401)(29.4)Other interest income5,7886,977
(1,189)(17.0)Total interest and dividend income318,091340,678
(22,587)(6.6)Interest expense:
Deposits123,895146,098
(22,203)(15.2)Federal Home Loan Bank advances39,63564,539
(24,904)(38.6)Junior subordinated debentures1,3731,593
(220)(13.8)Total interest expense164,903212,230
(47,327)(22.3)Net interest income153,188128,448
24,74019.3Provision for credit losses9,2002,400
6,800283.3Net interest income after provision for credit losses143,988126,048
17,94014.2Noninterest income (loss):
Wealth management revenues41,23639,054
2,1825.6Mortgage banking revenues12,08910,981
1,10810.1Card interchange fees5,1364,996
1402.8Service charges on deposit accounts3,2363,032
2046.7Loan related derivative income2,129467
1,662355.9Income from bank-owned life insurance3,3493,041
30810.1Realized losses on securities, net—(31,047)
31,047100.0Losses on sale of portfolio loans, net—(62,888)
62,888100.0Gain on sale of bank-owned properties, net 6,994988
6,006607.9Other income 1,6913,579
(1,888)(52.8)Total noninterest income (loss)75,860(27,797)
103,657372.9Noninterest expense:
Salaries and employee benefits91,76886,260
5,5086.4Outsourced services16,93716,258
6794.2Net occupancy10,7369,785
9519.7Equipment3,5903,838
(248)(6.5)Legal, audit, and professional fees2,8623,128
(266)(8.5)FDIC deposit insurance costs4,5805,513
(933)(16.9)Advertising and promotion2,9192,626
29311.2Amortization of intangibles762826
(64)(7.7)Pension plan settlement charge6,436—
6,436100.0Other expenses11,8458,835
3,01034.1Total noninterest expense152,435137,069
15,36611.2Income (loss) before income taxes67,413(38,818)
106,231273.7Income tax expense (benefit)15,169(10,759)
25,928241.0Net income (loss)$52,244($28,059)
$80,303286.2 %
Net income (loss) available to common shareholders$52,244($28,038)
Weighted avg common shares outstanding - basic19,18017,149
Weighted avg common shares outstanding - diluted19,28117,149
Per share information:
Basic earnings per common share$2.72($1.63)
$4.35(266.9 %)Diluted earnings per common share$2.71($1.63)
$4.34(266.3 %)Cash dividends declared$2.24$2.24
$—— % Washington Trust Bancorp, Inc. and SubsidiariesSELECTED FINANCIAL HIGHLIGHTS(Unaudited; Dollars and shares in thousands, except per share amounts)
Dec 31,
2025Sep 30,
2025Dec 31,
2024
Dec 31, 2025 vs.
Sep 30, 2025
Dec 31, 2025 vs.
Dec 31, 2024Share and Equity Related Data:
Book value per share$28.56$27.98$25.93
$0.582.1 %
$2.6310.1 %Tangible book value per share (non-GAAP) (1)$24.97$24.39$22.46
$0.582.4 %
$2.5111.2 %Market value per share$29.55$28.90$31.35
$0.652.2 %
($1.80)(5.7 %)Shares issued at end of period19,56219,56219,562
— shs— %
— shs— %Shares outstanding at end of period19,03519,05019,274
(15) shs(0.1 %)
(239) shs(1.2 %)
Capital Ratios (2):
Tier 1 risk-based capital 12.14 %12.11 %11.64 %
3 bps
50 bps
Total risk-based capital 12.95 %12.90 %12.47 %
5 bps
48 bps
Tier 1 leverage ratio8.65 %8.43 %8.13 %
22 bps
52 bps
Common equity tier 111.68 %11.64 %11.20 %
4 bps
48 bps
Balance Sheet Ratios:
Equity to assets8.21 %7.93 %7.21 %
28 bps
100 bps
Tangible equity to tangible assets (non-GAAP) (1)7.25 %6.99 %6.31 %
26 bps
94 bps
Loans to deposits (3)97.4 %98.0 %105.5 %
(60) bps
(810) bps
Q4 2025
For the Year Ended
YTD 2025
Q4 2025Q3 2025Q4 2024
vs.
Q3 2025
(bps) vs.
Q4 2024
(bps)
Dec 31,
2025Dec 31,
2024
vs.
2024
(bps)Performance Ratios (4):
Net interest margin (5)2.56 %2.40 %1.95 %
1661
2.40 %1.87 %
53
Return on average assets (6)0.95 %0.64 %(3.45 %)
31440
0.78 %(0.39 %)
117Adjusted return on average assets (non-GAAP) (1)0.95 %0.64 %0.59 %
3136
0.77 %0.57 %
20Return on average tangible assets (non-GAAP) (1)0.96 %0.65 %0.60 %
3136
0.78 %0.57 %
21
Return on average equity (7)11.70 %8.14 %(48.25 %)
3565,995
9.92 %(5.84 %)
1,576Adjusted return on average equity (non-GAAP) (1)11.70 %8.14 %8.29 %
356341
9.84 %8.52 %
132Return on average tangible equity (non-GAAP) (1)13.39 %9.34 %9.57 %
405382
11.28 %9.91 %
137
Efficiency ratio (8)64.1 %63.3 %(76.3 %)
8014,040
66.6 %136.2 %
(6,960)Adjusted efficiency ratio (non-GAAP) (1)64.1 %63.3 %70.0 %
80(590)
65.7 %71.6 %
(590)
(1)See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.(2)Estimated for Dec 31, 2025 and actuals for prior periods.(3)Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits.(4)Annualized based on the actual number of days in the period.(5)Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets.(6)Net income divided by average assets.(7)Net income available for common shareholders divided by average equity.(8)Total noninterest expense as percentage of total revenues (net interest income and noninterest income). Washington Trust Bancorp, Inc. and SubsidiariesSELECTED FINANCIAL HIGHLIGHTS(Unaudited; Dollars in thousands)
Q4 2025 vs. Q3 2025
Q4 2025 vs. Q4 2024
Q4 2025Q3 2025Q4 2024
$%
$%Wealth Management Results
Wealth Management Revenues:
Asset-based revenues$10,749$10,307$9,910
$4424.3 %
$8398.5 %Transaction-based revenues10366139
3756.1
(36)(25.9)Total wealth management revenues$10,852$10,373$10,049
$4794.6 %
$8038.0 %
Assets Under Administration (AUA):
Balance at end of period (1)$7,777,250$7,682,440$7,077,802
$94,8101.2 %
$699,4489.9 %
Percentage of AUA that are managed assets91 %91 %91 %
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (2)$3,424$2,450$2,493
$97439.8 %
$93137.3 %Changes in fair value, net (3)(610)530(317)
(1,140)(215.1)
(293)92.4Loan servicing fee income, net (4)436521672
(85)(16.3)
(236)(35.1)Total mortgage banking revenues$3,250$3,501$2,848
($251)(7.2 %)
$40214.1 %
Residential Mortgage Loan Originations:
Originations for retention in portfolio (5)$46,912$50,852$15,155
($3,940)(7.7 %)
$31,757209.5 %Originations for sale to secondary market (6)162,410122,300114,137
40,11032.8
48,27342.3Total mortgage loan originations$209,322$173,152$129,292
$36,17020.9 %
$80,03061.9 %
Percentage of originations for sale to total
mortgage loan originations78 %71 %88 %
Residential Mortgage Loans Sold:
Sold with servicing rights retained$7,461$9,774$62,410
($2,313)(23.7 %)
($54,949)(88.0 %)Sold with servicing rights released (6)150,507116,71350,697
33,79429.0
99,810196.9Total mortgage loans sold$157,968$126,487$113,107
$31,48124.9 %
$44,86139.7 %(1)Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025.(2)Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.(3)Represents fair value changes on mortgage loans held for sale and forward loan commitments.(4)Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.(5)Includes the full commitment amount of homeowner construction loans.(6)Includes brokered loans (loans originated for others). Washington Trust Bancorp, Inc. and SubsidiariesSELECTED FINANCIAL HIGHLIGHTS(Unaudited; Dollars in thousands)
ChangeFor the Year Ended Dec 31,20252024
$%Wealth Management Results
Wealth Management Revenues:
Asset-based revenues$40,570$38,008
$2,5626.7 %Transaction-based revenues6661,046
(380)(36.3)Total wealth management revenues$41,236$39,054
$2,1825.6 %
Assets Under Administration (AUA):
Balance at end of period (1)$7,777,250$7,077,802
$699,4489.9 %
Percentage of AUA that are managed assets91 %91 %
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (2)$9,909$8,776
$1,13312.9 %Changes in fair value, net (3)72(1)
737,300.0Loan servicing fee income, net (4)2,1082,206
(98)(4.4)Total mortgage banking revenues$12,089$10,981
$1,10810.1 %
Residential Mortgage Loan Originations:
Originations for retention in portfolio (5)$176,757$92,466
$84,29191.2 %Originations for sale to secondary market (6)490,441418,080
72,36117.3Total mortgage loan originations$667,198$510,546
$156,65230.7 %
Percentage of originations for sale to total mortgage loan originations74 %82 %
Residential Mortgage Loans Sold:
Sold with servicing rights retained$41,816$128,918
($87,102)(67.6 %)Sold with servicing rights released (6)434,913287,223
147,69051.4Total mortgage loans sold$476,729$416,141
$60,58814.6 %(1)Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025.(2)Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.(3)Represents fair value changes on mortgage loans held for sale and forward loan commitments.(4)Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.(5)Includes the full commitment amount of homeowner construction loans.(6)Includes brokered loans (loans originated for others). Washington Trust Bancorp, Inc. and SubsidiariesEND OF PERIOD LOAN COMPOSITION(Unaudited; Dollars in thousands)
Dec 31, 2025 vs.
Sep 30, 2025
Dec 31, 2025 vs.
Dec 31, 2024
Dec 31,
2025Sep 30,
2025Dec 31,
2024
$%
$%Loans:
Commercial real estate (1)$2,183,985$2,156,750$2,154,504
$27,2351.3 %
$29,4811.4 %Commercial & industrial564,082568,317542,474
(4,235)(0.7)
21,6084.0Total commercial2,748,0672,725,0672,696,978
23,0000.8
51,0891.9
Residential real estate (2)2,050,3992,073,7402,126,171
(23,341)(1.1)
(75,772)(3.6)
Home equity318,862307,371297,119
11,4913.7
21,7437.3Other17,06016,40417,570
6564.0
(510)(2.9)Total consumer335,922323,775314,689
12,1473.8
21,2336.7Total loans$5,134,388$5,122,582$5,137,838
$11,8060.2 %
($3,450)(0.1 %)(1)Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.(2)Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties. Washington Trust Bancorp, Inc. and SubsidiariesEND OF PERIOD LOAN COMPOSITION(Unaudited; Dollars in thousands)
Dec 31, 2025
Dec 31, 2024
Balance Change
Balance% of Total
Balance% of Total
$%Commercial Real Estate Portfolio Segmentation:
Multi-family$667,38831 %
$567,24326 %
$100,14517.7 %Retail436,96120
433,14620
3,8150.9Industrial and warehouse 380,40317
358,42517
21,9786.1Office 237,70611
289,85313
(52,147)(18.0)Hospitality230,54911
213,58510
16,9647.9Healthcare Facility156,8717
205,85810
(48,987)(23.8)Mixed-use 26,4401
29,0231
(2,583)(8.9)Other47,6672
57,3713
(9,704)(16.9)Total commercial real estate loans$2,183,985100 %
$2,154,504100 %
$29,4811.4 %
Commercial & Industrial Portfolio Segmentation:
Healthcare and social assistance$150,06127 %
$126,54723 %
$23,51418.6 %Real estate rental and leasing57,11310
63,99212
(6,879)(10.7)Transportation and warehousing55,31510
55,78410
(469)(0.8)Educational services54,24510
47,0929
7,15315.2Retail trade48,2899
41,1328
7,15717.4Accommodation and food services26,4315
12,3682
14,063113.7Manufacturing23,7144
32,1406
(8,426)(26.2)Finance and insurance22,7274
26,5575
(3,830)(14.4)Arts, entertainment, and recreation22,0434
19,8614
2,18211.0Information 21,8434
22,2654
(422)(1.9)Professional, scientific, and technical services12,4902
10,8452
1,64515.2Public administration 1,448—
2,186—
(738)(33.8)Other68,36311
81,70515
(13,342)(16.3)Total commercial & industrial loans$564,082100 %
$542,474100 %
$21,6084.0 %
Weighted Average
Asset Quality
Balance
(2) (3)Average Loan Size (4)Loan to
ValueDebt Service
Coverage
PassSpecial
MentionClassified
Nonaccrual
(included in
Classified)Non-Owner Occupied Commercial Real
Estate Office (inclusive of Construction):
Class A$85,190$10,71657 %1.45x
$56,894$22,139$6,157
$—Class B71,2323,56253 %1.58x
71,232——
—Class C10,5001,50057 %1.30x
8,3432,157—
—Medical Office37,3686,22858 %1.49x
37,368——
—Lab Space33,41618,22684 %—x
—33,416—
—Total office at Dec 31, 2025 (1)$237,706$5,61160 %1.27x
$173,837$57,712$6,157
$—Total office at Sep 30, 2025$242,165$5,48760 %1.36x
$179,227$30,996$31,942
$—Dec 31, 2025 vs. Sep 30, 2025($4,459)$124— %(0.09x)
($5,390)$26,716($25,785)
$—(1)Approximately 66% of the total commercial real estate office balance of $238 million is secured by income producing properties located in suburban areas. Additionally, approximately 51% of the total commercial real estate office balance is scheduled to mature before Dec 31, 2027.(2)Balance of commercial real estate office consists of 43 loans as of Dec 31, 2025.(3)Does not include $3.6 million of unfunded commitments as of Dec 31, 2025.(4)Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans. Washington Trust Bancorp, Inc. and SubsidiariesEND OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY(Unaudited; Dollars in thousands)
Dec 31, 2025 vs.
Sep 30, 2025
Dec 31, 2025 vs.
Dec 31, 2024
Dec 31,
2025Sep 30,
2025Dec 31,
2024
$%
$%Deposits:
Noninterest-bearing demand deposits$595,092$671,309$661,776
($76,217)(11.4 %)
($66,684)(10.1 %)Interest-bearing demand deposits (in-market)756,794703,848592,904
52,9467.5
163,89027.6NOW accounts715,114684,689692,812
30,4254.4
22,3023.2Money market accounts1,185,4201,195,4631,154,745
(10,043)(0.8)
30,6752.7Savings accounts796,887733,529523,915
63,3588.6
272,97252.1Time deposits (in-market)1,220,6831,233,9981,192,110
(13,315)(1.1)
28,5732.4In-market deposits (1)5,269,9905,222,8364,818,262
47,1540.9
451,7289.4Wholesale brokered time deposits——297,538
——
(297,538)(100.0)Total deposits$5,269,990$5,222,836$5,115,800
$47,1540.9 %
$154,1903.0 %(1)As of Dec 31, 2025, in-market deposits were approximately 60% retail and 40% commercial and the average size was approximately $39 thousand.
Dec 31,
2025
Dec 31,
2024
Dec 31, 2025 vs.
Dec 31, 2024Contingent Liquidity:
Federal Home Loan Bank of Boston$1,356,005
$752,951
$603,05480.1 %Federal Reserve Bank of Boston104,379
70,286
34,09348.5Available cash liquidity (1)17,460
36,647
(19,187)(52.4)Unencumbered securities539,830
597,771
(57,941)(9.7)Total$2,017,674
$1,457,655
$560,01938.4 %(1)Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs. Washington Trust Bancorp, Inc. and SubsidiariesCREDIT & ASSET QUALITY DATA(Unaudited; Dollars in thousands)
Dec 31, 2025 vs.
Dec 31,
2025Sep 30,
2025Dec 31,
2024
Sep 30,
2025
(bps)Dec 31,
2024
(bps)Asset Quality Ratios:
Nonperforming assets to total assets
0.20 %0.21 %0.34 %
(1)(14)Nonaccrual loans to total loans
0.25 %0.27 %0.45 %
(2)(20)Total past due loans to total loans
0.22 %0.16 %0.23 %
6(1)ACL on loans to nonaccrual loans
288.14 %260.96 %180.03 %
2,71810,811ACL on loans to total loans
0.73 %0.71 %0.82 %
2(9)
Dec 31, 2025 vs.
Sep 30, 2025
Dec 31, 2025 vs.
Dec 31, 2024
Dec 31,
2025Sep 30,
2025Dec 31,
2024
$%
$%Nonperforming Assets:
Commercial real estate$—$—$10,053
$—— %
($10,053)(100.0 %)Commercial & industrial—1,010515
(1,010)(100.0)
(515)(100.0)Total commercial—1,01010,568
(1,010)(100.0)
(10,568)(100.0)Residential real estate11,09911,12910,767
(30)(0.3)
3323.1Home equity 1,8241,8771,972
(53)(2.8)
(148)(7.5)Other consumer———
——
——Total consumer1,8241,8771,972
(53)(2.8)
(148)(7.5)Total nonaccrual loans12,92314,01623,307
(1,093)(7.8)
(10,384)(44.6)Other real estate owned———
——
——Total nonperforming assets$12,923$14,016$23,307
($1,093)(7.8 %)
($10,384)(44.6 %)
Past Due Loans (30 days or more past due):
Commercial real estate$648$—$—
$648100.0 %
$648100.0 %Commercial & industrial78900
(1)(12.5)
(893)(99.2)Total commercial6558900
6478,087.5
(245)(27.2)Residential real estate9,0956,4707,741
2,62540.6
1,35417.5Home equity1,6071,5832,947
241.5
(1,340)(45.5)Other consumer2651394
(25)(49.0)
(368)(93.4)Total consumer1,6331,6343,341
(1)(0.1)
(1,708)(51.1)Total past due loans$11,383$8,112$11,982
$3,27140.3 %
($599)(5.0 %)
Accruing loans 90 days or more past due$—$—$—
$—— %
$—— %Nonaccrual loans included in past due loans$8,348$5,925$6,447
$2,42340.9 %
$1,90129.5 % Washington Trust Bancorp, Inc. and SubsidiariesCREDIT & ASSET QUALITY DATA(Unaudited; Dollars in thousands)
For the Three Months Ended
For the Year Ended Dec 31,
Dec 31,
2025Sep 30,
2025Dec 31,
2024
Dec 31,
2025Dec 31,
2024Nonaccrual Loan Activity:
Balance at beginning of period$14,016$26,108$31,142
$23,307$44,618Additions to nonaccrual status1,8511,0685,417
15,5158,284Loans returned to accruing status(1,229)—(9)
(2,726)(14,410)Loans charged-off(87)(11,459)(2,231)
(14,735)(2,413)Loans transferred to other real estate owned———
——Payments, payoffs, and other changes(1,628)(1,701)(11,012)
(8,438)(12,772)Balance at end of period$12,923$14,016$23,307
$12,923$23,307
Allowance for Credit Losses on Loans:
Balance at beginning of period$36,576$41,059$42,630
$41,960$41,057Provision for credit losses on loans (1)5006,9501,200
9,5002,900Charge-offs(87)(11,459)(2,231)
(14,735)(2,413)Recoveries24726361
511416Balance at end of period$37,236$36,576$41,960
$37,236$41,960
Allowance for Credit Losses on Unfunded Commitments:
Balance at beginning of period$1,040$1,190$1,640
$1,440$1,940Provision for credit losses on unfunded commitments (1)100(150)(200)
(300)(500)Balance at end of period (2)$1,140$1,040$1,440
$1,140$1,440(1)Included in provision for credit losses in the Consolidated Statements of Income.(2)Included in other liabilities in the Consolidated Balance Sheets. Washington Trust Bancorp, Inc. and SubsidiariesCREDIT & ASSET QUALITY DATA(Unaudited; Dollars in thousands)
Q4 2025 vs. Q3 2025
Q4 2025 vs. Q4 2024
Q4 2025Q3 2025Q4 2024
$%
$%Provision for Credit Losses:
Provision for credit losses on loans$500$6,950$1,200
($6,450)(92.8 %)
($700)(58.3 %)Provision for credit losses on unfunded commitments100(150)(200)
250166.7
300150.0Provision for credit losses$600$6,800$1,000
($6,200)(91.2 %)
($400)(40.0 %)
Net Loan Charge-Offs (Recoveries):
Commercial real estate($118)$2,991$1,961
($3,109)(103.9 %)
($2,079)(106.0 %)Commercial & industrial(111)8,355181
(8,466)(101.3)
(292)(161.3)Total commercial(229)11,3462,142
(11,575)(102.0)
(2,371)(110.7)Residential real estate——(160)
——
160100.0Home equity(1)(15)(189)
1493.3
18899.5Other consumer7010277
(32)(31.4)
(7)(9.1)Total consumer6987(112)
(18)(20.7)
181161.6Total($160)$11,433$1,870
($11,593)(101.4 %)
($2,030)(108.6 %)
ChangeFor the Year Ended Dec 31,20252024
$%Provision for Credit Losses:
Provision for credit losses on loans$9,500$2,900
$6,600227.6 %Provision for credit losses on unfunded commitments(300)(500)
20040.0Provision for credit losses$9,200$2,400
$6,800283.3 %
Net Loan Charge-Offs (Recoveries):
Commercial real estate$5,397$1,961
$3,436175.2 %Commercial & industrial8,554186
8,3684,498.9Total commercial13,9512,147
11,804549.8Residential real estate—(160)
160100.0Home equity(18)(197)
17990.9Other consumer291207
8440.6Total consumer27310
2632,630.0Total$14,224$1,997
$12,227612.3 % Washington Trust Bancorp, Inc. and SubsidiariesCONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)(Unaudited; Dollars in thousands)
The following tables present daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.
For the Three Months EndedDec 31, 2025
Sep 30, 2025
Change
Average
BalanceInterestYield/Rate
Average
BalanceInterestYield/Rate
Average
BalanceInterestYield/Rate
Assets:
Cash, federal funds sold, and short-term
investments$131,215$1,2913.90 %
$137,021$1,4754.27 %
($5,806)($184)(0.37 %)Mortgage loans held for sale38,6966066.21
31,9575426.73
6,73964(0.52)Taxable debt securities1,051,5499,1003.43
1,075,1199,3723.46
(23,570)(272)(0.03)Nontaxable debt securities65084.88
65084.88
———Total securities1,052,1999,1083.43
1,075,7699,3803.46
(23,570)(272)(0.03)FHLB stock32,9187929.55
42,5497647.12
(9,631)282.43Commercial real estate2,148,05230,7245.67
2,201,22032,2935.82
(53,168)(1,569)(0.15)Commercial & industrial561,0358,2925.86
553,8678,2035.88
7,16889(0.02)Total commercial2,709,08739,0165.71
2,755,08740,4965.83
(46,000)(1,480)(0.12)Residential real estate2,062,58922,8294.39
2,088,06623,0324.38
(25,477)(203)0.01Home equity313,7595,1946.57
303,4805,2706.89
10,279(76)(0.32)Other16,7642165.11
16,2922054.99
472110.12Total consumer330,5235,4106.49
319,7725,4756.79
10,751(65)(0.30)Total loans5,102,19967,2555.23
5,162,92569,0035.30
(60,726)(1,748)(0.07)Total interest-earning assets6,357,22779,0524.93
6,450,22181,1644.99
(92,994)(2,112)(0.06)Noninterest-earning assets290,006
288,575
1,431
Total assets$6,647,233
$6,738,796
($91,563)
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits (in-
market)$734,617$6,3753.44 %
$685,422$6,5033.76 %
$49,195($128)(0.32 %)NOW accounts671,8403480.21
669,4933900.23
2,347(42)(0.02)Money market accounts1,198,8188,8462.93
1,174,5849,6203.25
24,234(774)(0.32)Savings accounts757,8433,4561.81
719,2293,6242.00
38,614(168)(0.19)Time deposits (in-market)1,225,77911,0353.57
1,209,01111,0803.64
16,768(45)(0.07)Interest-bearing in-market deposits4,588,89730,0602.60
4,457,73931,2172.78
131,158(1,157)(0.18)Wholesale brokered time deposits———
53964.42
(539)(6)(4.42)Total interest-bearing deposits4,588,89730,0602.60
4,458,27831,2232.78
130,619(1,163)(0.18)FHLB advances708,1747,6964.31
942,68510,5424.44
(234,511)(2,846)(0.13)Junior subordinated debentures22,6813335.82
22,6813476.07
—(14)(0.25)Total interest-bearing liabilities5,319,75238,0892.84
5,423,64442,1123.08
(103,892)(4,023)(0.24)Noninterest-bearing demand deposits647,274
648,268
(994)
Other liabilities138,742
138,569
173
Shareholders' equity541,465
528,315
13,150
Total liabilities and shareholders' equity$6,647,233
$6,738,796
($91,563)
Net interest income (FTE)
$40,963
$39,052
$1,911
Interest rate spread
2.09 %
1.91 %
0.18 %Net interest margin
2.56 %
2.40 %
0.16 %Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:For the Three Months EndedDec 31, 2025Sep 30, 2025
ChangeCommercial loans$214$218
($4)Nontaxable debt securities—1
(1)Total$214$219
($5)
Washington Trust Bancorp, Inc. and SubsidiariesCONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)(Unaudited; Dollars in thousands)For the Year EndedDec 31, 2025
Dec 31, 2024
Change
Average
BalanceInterestYield/Rate
Average
BalanceInterestYield/ Rate
Average
BalanceInterestYield/ Rate
Assets:
Cash, federal funds sold and short-term
investments$136,515$5,7884.24 %
$129,119$6,9775.40 %
$7,396($1,189)(1.16 %)Mortgage loans for sale50,6092,5485.03
34,0401,7755.21
16,569773(0.18)Taxable debt securities1,059,25536,5293.45
1,118,09227,8502.49
(58,837)8,6790.96Nontaxable debt securities650324.92
18594.86
465230.06Total securities1,059,90536,5613.45
1,118,27727,8592.49
(58,372)8,7020.96FHLB stock40,0883,3708.41
57,2864,7718.33
(17,198)(1,401)0.08Commercial real estate2,162,523124,5975.76
2,145,496135,3236.31
17,027(10,726)(0.55)Commercial & industrial550,95532,3365.87
583,82737,6236.44
(32,872)(5,287)(0.57)Total commercial2,713,478156,9335.78
2,729,323172,9466.34
(15,845)(16,013)(0.56)Residential real estate2,091,74292,2114.41
2,537,903105,2534.15
(446,161)(13,042)0.26Home equity303,20220,6936.82
302,98021,1366.98
222(443)(0.16)Other16,8498445.01
18,2778824.83
(1,428)(38)0.18Total consumer320,05121,5376.73
321,25722,0186.85
(1,206)(481)(0.12)Total loans5,125,271270,6815.28
5,588,483300,2175.37
(463,212)(29,536)(0.09)Total interest-earning assets6,412,388318,9484.97
6,927,205341,5994.93
(514,817)(22,651)0.04Noninterest-earning assets286,013
253,957
32,056
Total assets$6,698,401
$7,181,162
($482,761)
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits (in-
market)$678,515$25,0053.69 %
$550,652$24,1564.39 %
$127,863$849(0.70 %)NOW accounts672,8081,4230.21
701,9891,5720.22
(29,181)(149)(0.01)Money market accounts1,196,80338,2733.20
1,127,96042,7103.79
68,843(4,437)(0.59)Savings accounts677,06412,0101.77
489,9983,7040.76
187,0668,3061.01Time deposits (in-market)1,213,69244,7273.69
1,172,50047,5954.06
41,192(2,868)(0.37)Interest-bearing in-market deposits4,438,882121,4382.74
4,043,099119,7372.96
395,7831,701(0.22)Wholesale brokered time deposits48,7032,4575.04
504,63826,3615.22
(455,935)(23,904)(0.18)Total interest-bearing deposits4,487,585123,8952.76
4,547,737146,0983.21
(60,152)(22,203)(0.45)FHLB advances885,66839,6354.48
1,312,39164,5394.92
(426,723)(24,904)(0.44)Junior subordinated debentures22,6811,3736.05
22,6811,5937.02
—(220)(0.97)Total interest-bearing liabilities5,395,934164,9033.06
5,882,809212,2303.61
(486,875)(47,327)(0.55)Noninterest-bearing demand deposits633,193
664,557
(31,364)
Other liabilities142,557
154,019
(11,462)
Shareholders' equity526,717
479,777
46,940
Total liabilities and shareholders' equity$6,698,401
$7,181,162
($482,761)
Net interest income (FTE)
$154,045
$129,369
$24,676
Interest rate spread
1.91 %
1.32 %
0.59 %Net interest margin
2.40 %
1.87 %
0.53 %Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Year EndedDec 31, 2025Dec 31, 2024
ChangeCommercial loans$858$916
($58)Nontaxable debt securities21
1Total$860$917
($57) Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures(Unaudited; Dollars in thousands, except per share amounts)
The following tables present adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, and adjusted net income available to common shareholders:
Q4 2025 vs. Q3 2025
Q4 2025 vs. Q4 2024
Q4 2025Q3 2025Q4 2024
$%
$%Adjusted Noninterest Income:
Noninterest income (loss), as reported$18,503$17,636($77,892)
$8674.9 %
$96,395123.8 %Less adjustments:
Realized losses on securities, net (1)——(31,047)
——
31,047100.0Losses on sale of portfolio loans, net (1)——(62,888)
——
62,888100.0Total adjustments, pre-tax——(93,935)
——
93,935100.0Adjusted noninterest income (non-GAAP)$18,503$17,636$16,043
$8674.9 %
$2,46015.3 %
Adjusted Income Before Income Taxes:
Income (loss) before income taxes$20,668$13,943($80,248)
$6,72548.2 %
$100,916125.8 %Less: total adjustments, pre-tax——(93,935)
——
93,935100.0Adjusted income before income taxes (non-GAAP)$20,668$13,943$13,687
$6,72548.2 %
$6,98151.0 %
Adjusted Income Tax Expense:
Income tax expense (benefit), as reported$4,694$3,097($19,457)
$1,59751.6 %
$24,151124.1 %Less: tax on total adjustments——(22,699)
——
22,699100.0Adjusted income tax expense (non-GAAP)$4,694$3,097$3,242
$1,59751.6 %
$1,45244.8 %
Adjusted Net Income:
Net income (loss), as reported$15,974$10,846($60,791)
$5,12847.3 %
$76,765126.3 %Less: total adjustments, after-tax——(71,236)
——
71,236100.0Adjusted net income (non-GAAP)$15,974$10,846$10,445
$5,12847.3 %
$5,52952.9 %
Adjusted Net Income Available to Common Shareholders:
Net income (loss) available to common shareholders,
as reported$15,974$10,846($60,776)
$5,12847.3 %
$76,750126.3 %Less: total adjustments available to common
shareholders, after-tax——(71,221)
——
71,221100.0Adjusted net income available to common
shareholders (non-GAAP)$15,974$10,846$10,445
$5,12847.3 %
$5,52952.9 %(1)Associated with the balance sheet repositioning transactions executed in December 2024. Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures(Unaudited; Dollars in thousands, except per share amounts)
ChangeFor the Year Ended Dec 31,
20252024
$%Adjusted Noninterest Income:
Noninterest income (loss), as reported
$75,860($27,797)
$103,657372.9 %Less adjustments:
Realized losses on securities, net (1)
—(31,047)
31,047100.0Losses on sale of portfolio loans, net (1)
—(62,888)
62,888100.0Gain on sale of bank-owned properties, net
6,994988
6,006607.9Litigation settlement income
—2,100
(2,100)(100.0)Total adjustments, pre-tax
6,994(90,847)
97,841107.7Adjusted noninterest income (non-GAAP)
$68,866$63,050
$5,8169.2 %
Adjusted Noninterest Expense:
Noninterest expense, as reported
$152,435$137,069
$15,36611.2 %Less adjustments:
Pension plan settlement charge
6,436—
6,436100.0Total adjustments, pre-tax
6,436—
6,436100.0Adjusted noninterest expense (non-GAAP)
$145,999$137,069
$8,9306.5 %
Adjusted Income Before Income Taxes:
Income (loss) before income taxes
$67,413($38,818)
$106,231273.7 %Less: total adjustments, pre-tax
558(90,847)
91,405100.6Adjusted income before income taxes (non-GAAP)
$66,855$52,029
$14,82628.5 %
Adjusted Income Tax Expense:
Income tax expense (benefit), as reported
$15,169($10,759)
$25,928241.0 %Less: tax on total adjustments
141(21,920)
22,061100.6Adjusted income tax expense (non-GAAP)
$15,028$11,161
$3,86734.6 %
Adjusted Net Income:
Net income (loss), as reported
$52,244($28,059)
$80,303286.2 %Less: total adjustments, after-tax
417(68,927)
69,344100.6Adjusted net income (non-GAAP)
$51,827$40,868
$10,95926.8 %
Adjusted Net Income Available to Common Shareholders:
Net income (loss) available to common shareholders, as reported
$52,244($28,038)
$80,282286.3 %Less: total adjustments available to common shareholders, after-tax
417(68,906)
69,323100.6Adjusted net income available to common shareholders (non-GAAP)
$51,827$40,868
$10,95926.8 %(1)Associated with the balance sheet repositioning transactions executed in December 2024. Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)(Unaudited; Dollars in thousands, except per share amounts)The following tables present adjusted diluted earnings per common share and adjusted efficiency ratio:
Q4 2025Q3 2025Q4 2024
Q4 2025 vs. Q3 2025
Q4 2025 vs. Q4 2024Adjusted Diluted Earnings per Common Share:
Diluted earnings (loss) per common share, as
reported (1)$0.83$0.56($3.48)
$0.2748.2 %
$4.31123.9 %Less: impact of total adjustments——(4.07)
——
4.07100.0Adjusted diluted earnings per common share (non-GAAP) (2)$0.83$0.56$0.59
$0.2748.2 %
$0.2440.7 %
Adjusted Efficiency Ratio:
Efficiency ratio, as reported (3)64.1 %63.3 %(76.3 %)
80 bps
14,040 bps
Less: impact of total adjustments——(146.3)
— bps
14,630 bps
Adjusted efficiency ratio (non-GAAP) (4)64.1 %63.3 %70.0 %
80 bps
(590) bps
For the Year Ended Dec 31,
20252024
ChangeAdjusted Diluted Earnings per Common Share:
Diluted earnings (loss) per common share, as reported (1)
$2.71($1.63)
$4.34266.3 %Less: impact of total adjustments
0.02(4.00)
4.02100.5Adjusted diluted earnings per common share (non-GAAP) (2)
$2.69$2.37
$0.3213.5 %
Adjusted Efficiency Ratio:
Efficiency ratio, as reported (3)
66.6 %136.2 %
(6,960) bps
Less: impact of total adjustments
0.964.6
(6,370) bps
Adjusted efficiency ratio (non-GAAP) (4)
65.7 %71.6 %
(590) bps
(1)Net income (loss) available to common shareholders divided by weighted average diluted common and potential shares outstanding.(2)Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding.(3)Total noninterest expense as percentage of total revenues (net interest income and noninterest income).(4)Total noninterest expense as percentage of total revenues (net interest income and noninterest income), each adjusted for the pre-tax impact of adjustments as outlined in the table above. Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)(Unaudited; Dollars in thousands, except per share amounts)
The following tables present adjusted return on average assets and return on average tangible assets:
Q4 2025Q3 2025Q4 2024
Q4 2025 vs. Q3 2025
Q4 2025 vs. Q4 2024Adjusted Return on Average Assets:
Net income (loss), as reported$15,974$10,846($60,791)
$5,12847.3 %
$76,765126.3 %Less: total adjustments, after-tax——(71,236)
——
71,236100.0Adjusted net income (non-GAAP)$15,974$10,846$10,445
$5,12847.3 %
$5,52952.9 %
Total average assets, as reported$6,647,233$6,738,796$7,011,839
($91,563)(1.4 %)
($364,606)(5.2 %)
Return on average assets (1)0.95 %0.64 %(3.45 %)
31 bps
440 bps
Adjusted return on average assets (non-GAAP) (2)0.95 %0.64 %0.59 %
31 bps
36 bps
Return on Average Tangible Assets:
Adjusted net income (non-GAAP)$15,974$10,846$10,445
$5,12847.3 %
$5,52952.9 %
Total average assets, as reported$6,647,233$6,738,796$7,011,839
($91,563)(1.4 %)
($364,606)(5.2 %)Less average balances of:
Goodwill63,90963,90963,909
——
——Identifiable intangible assets, net4,3783,8212,984
55714.6
1,39446.7Total average tangible assets$6,578,946$6,671,066$6,944,946
($92,120)(1.4 %)
($366,000)(5.3 %)
Return on average assets (1)0.95 %0.64 %(3.45 %)
31 bps
440 bps
Return on average tangible assets (non-GAAP) (3)0.96 %0.65 %0.60 %
31 bps
36 bps
For the Year Ended Dec 31,
20252024
ChangeAdjusted Return on Average Assets:
Net income (loss), as reported
$52,244($28,059)
$80,303286.2 %Less: total adjustments, after-tax
417(68,927)
69,344100.6Adjusted net income (non-GAAP)
$51,827$40,868
$10,95926.8 %
Total average assets, as reported
$6,698,401$7,181,162
($482,761)(6.7 %)
Return on average assets (1)
0.78 %(0.39 %)
117 bps
Adjusted return on average assets (non-GAAP) (2)
0.77 %0.57 %
20 bps
Return on Average Tangible Assets:
Adjusted net income (non-GAAP)
$51,827$40,868
$10,95926.8 %
Total average assets, as reported
$6,698,401$7,181,162
($482,761)(6.7 %)Less average balances of:
Goodwill
63,90963,909
——Identifiable intangible assets, net
3,3953,292
1033.1Total average tangible assets
$6,631,097$7,113,961
($482,864)(6.8 %)
Return on average assets (1)
0.78 %(0.39 %)
117 bps
Return on average tangible assets (non-GAAP) (3)
0.78 %0.57 %
21 bps
(1)Net income (income) loss divided by total average assets.(2)Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets.(3)Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible assets. Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)(Unaudited; Dollars in thousands, except per share amounts)
The following tables present adjusted return on average equity and return on average tangible equity:
Q4 2025Q3 2025Q4 2024
Q4 2025 vs. Q3 2025
Q4 2025 vs. Q4 2024Adjusted Return on Average Equity:
Net income (loss) available to common
shareholders, as reported$15,974$10,846($60,776)
$5,12847.3 %
$76,750126.3 %Less: total adjustments, after-tax——(71,221)
——
71,221100.0Adjusted net income available to common
shareholders (non-GAAP)$15,974$10,846$10,445
$5,12847.3 %
$5,52952.9 %
Total average equity, as reported$541,465$528,315$501,099
$13,1502.5 %
$40,3668.1 %
Return on average equity (1)11.70 %8.14 %(48.25 %)
356 bps
5,995 bps
Adjusted return on average equity (non-GAAP) (2)11.70 %8.14 %8.29 %
356 bps
341 bps
Return on Average Tangible Equity:
Adjusted net income available to common
shareholders (non-GAAP)$15,974$10,846$10,445
$5,12847.3 %
$5,52952.9 %
Total average equity, as reported$541,465$528,315$501,099
$13,1502.5 %
$40,3668.1 %Less average balances of:
Goodwill63,90963,90963,909
——
——Identifiable intangible assets, net4,3783,8212,984
55714.6
1,39446.7Total average tangible equity (non-GAAP)$473,178$460,585$434,206
$12,5932.7 %
$38,9729.0 %
Return on average equity (1)11.70 %8.14 %(48.25 %)
356 bps
5,995 bps
Return on average tangible equity (non-GAAP) (3)13.39 %9.34 %9.57 %
405 bps
382 bps
(1)Net income (loss) available to common shareholders divided by total average equity.(2)Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.(3)Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible equity. Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)(Unaudited; Dollars in thousands, except per share amounts)
For the Year Ended Dec 31,
20252024
ChangeAdjusted Return on Average Equity:
Net income (loss) available to common shareholders, as reported
$52,244($28,038)
$80,282286.3 %Less: total adjustments, after-tax
417(68,906)
69,323100.6Adjusted net income available to common shareholders (non-GAAP)
$51,827$40,868
$10,95926.8
Total average equity, as reported
$526,717$479,777
$46,9409.8
Return on average equity (1)
9.92 %(5.84 %)
1,576 bps
Adjusted return on average equity (non-GAAP) (2)
9.84 %8.52 %
132 bps
Return on Average Tangible Equity:
Adjusted net income available to common shareholders (non-GAAP)
$51,827$40,868
$10,95926.8 %
Total average equity, as reported
$526,717$479,777
$46,9409.8Less average balances of:
Goodwill
63,90963,909
——Identifiable intangible assets, net
3,3953,292
1033.1Total average tangible equity (non-GAAP)
$459,413$412,576
$46,83711.4
Return on average equity (1)
9.92 %(5.84 %)
1,576 bps
Return on average tangible equity (non-GAAP) (3)
11.28 %9.91 %
137 bps
(1)Net income (loss) available to common shareholders divided by total average equity.(2)Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.(3)Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible equity. Washington Trust Bancorp, Inc. and SubsidiariesSUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)(Unaudited; Dollars in thousands, except per share amounts)
The following table presents tangible book value per share and the ratio of tangible equity to tangible assets:
Dec 31,
2025Sep 30,
2025Dec 31,
2024
Dec 31, 2025 vs.
Sep 30, 2025
Dec 31, 2025 vs.
Dec 31, 2024Tangible Book Value per Share:
Total shareholders' equity, as reported$543,584$533,021$499,728
$10,5632.0 %
$43,8568.8 %Less end of period balances of:
Goodwill63,90963,90963,909
—— %
—— %Identifiable intangible assets, net4,3034,4582,885
(155)(3.5) %
1,41849.2 %Total tangible shareholders' equity (non-GAAP)$475,372$464,654$432,934
$10,7182.3 %
$42,4389.8 %
Shares outstanding, as reported19,03519,05019,274
(15)(0.1 %)
(239)(1.2 %)
Book value per share$28.56$27.98$25.93
$0.582.1 %
$2.6310.1 %Tangible book value per share (non-GAAP)$24.97$24.39$22.46
$0.582.4 %
$2.5111.2 %
Tangible Equity to Tangible Assets:
Total tangible shareholders' equity$475,372$464,654$432,934
$10,7182.3 %
$42,4389.8 %
Total assets, as reported$6,621,694$6,717,921$6,930,647
($96,227)(1.4 %)
($308,953)(4.5 %)Less end of period balances of:
Goodwill63,90963,90963,909
—— %
—— %Identifiable intangible assets, net4,3034,4582,885
(155)(3.5 %)
1,41849.2 %Total tangible assets (non-GAAP)$6,553,482$6,649,554$6,863,853
($96,072)(1.4 %)
($310,371)(4.5 %)
Equity to assets8.21 %7.93 %7.21 %
28 bps
100 bps
Tangible equity to tangible assets (non-GAAP)7.25 %6.99 %6.31 %
26 bps
94 bps
Category: Earnings
View original content to download multimedia:https://www.prnewswire.com/news-releases/washington-trust-reports-strong-fourth-quarter-and-full-year-2025-results-302672959.htmlSOURCE Washington Trust Bancorp, Inc.
Original: Washington Trust Reports Strong Fourth Quarter and Full-Year 2025 Results
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