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Washington Trust (NASDAQ: WASH) Q1 2026 profit slips as nonaccrual loans jump

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8-K

Rhea-AI Filing Summary

Washington Trust Bancorp, Inc. reported first quarter 2026 net income of $12.6 million, or $0.66 per diluted share, down from $15.97 million, or $0.83, in the prior quarter, but modestly higher than $12.18 million, or $0.63, a year earlier. Net interest margin improved to 2.63%, up 7 basis points sequentially and 34 basis points year over year, as funding costs declined faster than asset yields. Total loans fell to $5.0 billion and deposits to $5.16 billion, both down 2% from year-end. Asset quality weakened, with nonaccrual loans rising to $40.4 million, or 0.81% of total loans, and the provision for credit losses increasing to $4.0 million. Capital remained solid, with a total risk-based capital ratio of 13.38% and book value per share of $28.72; the quarterly dividend was maintained at $0.56 per share.

Positive

  • None.

Negative

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Insights

Results show better margin but noticeably weaker credit quality.

Washington Trust delivered mixed first quarter 2026 results. Net income of $12.6 million fell 21.1% from Q4, mainly as noninterest income declined and the provision for credit losses jumped, though earnings were slightly above Q1 2025 on an adjusted basis.

Core profitability metrics were stable to modestly better: net interest margin improved to 2.63% and the efficiency ratio was 65.3%, improved versus Q1 2025. Capital ratios strengthened, with total risk-based capital at 13.38% and tangible equity to tangible assets at 7.49%, providing a cushion against credit volatility.

The key concern is credit. Nonaccrual loans rose to $40.4 million, more than tripling from $12.9 million at year-end, largely from two commercial real estate office credits. The ACL-to-loans ratio increased to 0.82% and the quarterly provision reached $4.0 million. Subsequent disclosures will clarify whether this spike is contained or the start of a broader trend, especially within office and other commercial real estate segments.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income $12.6 million Q1 2026; up from $12.18M in Q1 2025, down from $15.97M in Q4 2025
Diluted EPS $0.66 Q1 2026; versus $0.83 in Q4 2025 and $0.63 in Q1 2025
Net interest margin 2.63% Q1 2026; up 7 bps QoQ and 34 bps YoY
Total loans $5.01 billion Period-end March 31, 2026; down 2.3% from December 31, 2025
Total deposits $5.16 billion Period-end March 31, 2026; down 2.0% QoQ, up 2.5% YoY
Nonaccrual loans $40.4 million March 31, 2026; up from $12.9M at December 31, 2025
Provision for credit losses $4.0 million Q1 2026; versus $0.6M in Q4 2025 and $1.2M in Q1 2025
Total risk-based capital ratio 13.38% March 31, 2026; up from 12.95% at December 31, 2025
net interest margin financial
"Net interest margin ("NIM") was 2.63%, up by 7 basis points and up by 34 basis points from the first quarter of 2025."
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
nonperforming assets financial
"Nonperforming assets to total assets were 0.63% at March 31, 2026, up from 0.20% at December 31, 2025."
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
allowance for credit losses financial
"The allowance for credit losses ("ACL") on loans amounted to $41.1 million, or 0.82% of total loans."
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
tangible book value per share financial
"Tangible book value per share (non-GAAP) was $25.14 at March 31, 2026."
Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.
efficiency ratio financial
"The efficiency ratio was 65.3% in Q1 2026, compared to 71.4% in Q1 2025."
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
nonaccrual loans financial
"Nonaccrual loans were $40.4 million, or 0.81% of total loans, up from $12.9 million, or 0.25%."
Nonaccrual loans are loans a lender has stopped counting toward interest income because the borrower is overdue or unlikely to pay; the lender only records cash payments received and may set aside extra funds to cover potential losses. For investors, a rising number or amount of nonaccrual loans signals weaker credit quality, lower future interest revenue and larger potential write-downs — similar to pausing expected subscription income when many customers stop paying.
Net income $12.6 million +3.5% YoY
Diluted EPS $0.66 +$0.03 YoY
Net interest margin 2.63% +34 bps YoY
Return on average assets 0.78% +5 bps YoY
Return on average equity 9.23% -40 bps YoY
Efficiency ratio 65.3% -610 bps YoY
Understanding 8-K Material Events →
0000737468FALSE00007374682026-04-202026-04-20

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 20, 2026
WASHINGTON TRUST BANCORP, INC.
(Exact Name of Registrant as Specified in Charter)
Rhode Island001-3299105-0404671
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
23 Broad Street
Westerly,Rhode Island02891
(Address of principal executive offices)(Zip Code)
(401)348-1200
(Registrant's telephone number, including area code)
N/A
(Former name or address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
COMMON STOCK, $.0625 PAR VALUE PER SHARE
WASH
Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition.

On April 20, 2026, Washington Trust Bancorp, Inc. issued a press release in which it disclosed unaudited financial information related to first quarter 2026 consolidated earnings. A copy of the press release relating to such announcement, dated April 20, 2026, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Pursuant to General Instructions B.2 of Form 8-K, this information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No.Exhibit
99.1
Press release dated April 20, 2026*
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
*Furnished herewith


SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


WASHINGTON TRUST BANCORP, INC.
Date:April 20, 2026By:/s/ Ronald S. Ohsberg
Ronald S. Ohsberg
Senior Executive Vice President, Chief Financial Officer and Treasurer


Exhibit 99.1
bancorpflatbluehorizontalaa.jpg
    NASDAQ: WASH
Media Contact: Kathleen Hart
VP, Public Relations Manager
Telephone: (401) 348-1495
E-mail: kahart@washtrust.com
Date: April 20, 2026
FOR IMMEDIATE RELEASE

Washington Trust Reports First Quarter 2026 Results

WESTERLY, R.I., April 20, 2026 (PR NEWSWIRE)…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.

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Washington Trust
April 20, 2026
RESULTS OF OPERATIONS (Q1 2026 vs. Q4 2025, unless otherwise noted):
Net Interest Income
Net 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 Income
Noninterest 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 Expense
Noninterest 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 Tax
Income 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 Securities
The securities portfolio totaled $912 million, down by $28 million, or 3%, and remained at 14% of total assets.

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Washington Trust
April 20, 2026
Loans
Total 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 Borrowings
Total 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 Dividends
Total 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%.
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Washington Trust
April 20, 2026

Conference Call
Washington 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.

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Washington Trust
April 20, 2026
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut, and Massachusetts. The Corporation’s common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation’s website at https://ir.washtrust.com.

Forward-Looking Statements
This press release contains statements that are “forward-looking statements.” We may also make forward-looking statements in other documents we file with the U.S. Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors, or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control. These risks, uncertainties, and other factors may cause our actual results, performance, or achievements to be materially different from the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following:
•changes in general business and economic conditions (including the impact of 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; and
•changes in the assumptions used in making such forward-looking statements.

In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 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 Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted net income, adjusted 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.
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Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; Dollars in thousands)
Mar 31, 2026 vs. Dec 31, 2025Mar 31, 2026 vs. Mar 31, 2025
Mar 31,
2026		Dec 31,
2025		Mar 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 banks60,090 61,375 82,804 (1,285)(2.1)(22,714)(27.4)
Short-term investments12,313 12,878 4,041 (565)(4.4)8,272 204.7
Mortgage loans held for sale, at fair value
32,127 35,833 21,953 (3,706)(10.3)10,174 46.3
Available for sale debt securities, at fair value911,958 940,342 917,545 (28,384)(3.0)(5,587)(0.6)
Federal Home Loan Bank stock, at cost28,273 29,473 38,899 (1,200)(4.1)(10,626)(27.3)
Loans:
Total loans
5,014,885 5,134,388 5,096,210 (119,503)(2.3)(81,325)(1.6)
Less: allowance for credit losses on loans
41,126 37,236 41,056 3,890 10.470 0.2
Net loans
4,973,759 5,097,152 5,055,154 (123,393)(2.4)(81,395)(1.6)
Premises and equipment, net25,900 25,402 26,068 498 2.0(168)(0.6)
Operating lease right-of-use assets35,855 35,904 36,048 (49)(0.1)(193)(0.5)
Investment in bank-owned life insurance116,010 115,126 107,546 884 0.88,464 7.9
Goodwill63,909 63,909 63,909 — —— —
Identifiable intangible assets, net4,148 4,303 2,682 (155)(3.6)1,466 54.7
Other assets167,073 170,516 195,972 (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 deposits
4,579,218 4,674,898 4,414,991 (95,680)(2.0)164,227 3.7
Total deposits
5,164,633 5,269,990 5,040,581 (105,357)(2.0)124,052 2.5
Federal Home Loan Bank advances576,000 626,000 850,000 (50,000)(8.0)(274,000)(32.2)
Junior subordinated debentures22,681 22,681 22,681 — —— —
Operating lease liabilities38,724 38,726 38,716 (2)—8 —
Other liabilities110,385 120,713 112,357 (10,328)(8.6)(1,972)(1.8)
Total liabilities
5,912,423 6,078,110 6,064,335 (165,687)(2.7)(151,912)(2.5)
Shareholders’ Equity:
Common stock
1,223 1,223 1,223 — —— —
Paid-in capital198,654 198,323 197,570 331 0.21,084 0.5
Retained earnings444,508 442,741 435,233 1,767 0.49,275 2.1
Accumulated other comprehensive loss(78,435)(79,309)(99,179)874 (1.1)20,744 20.9
Treasury stock, at cost(19,177)(19,394)(13,167)217 (1.1)(6,010)(45.6)
Total shareholders’ equity
546,773 543,584 521,680 3,189 0.625,093 4.8
Total liabilities and shareholders’ equity
$6,459,196 $6,621,694 $6,586,015 ($162,498)(2.5%)($126,819)(1.9%)


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Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars and shares in thousands, except per share amounts)
Q1 2026 vs. Q4 2025Q1 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 sale
375 606 958 (231)(38.1)(583)(60.9)
Taxable interest on debt securities
8,768 9,100 8,827 (332)(3.6)(59)(0.7)
Nontaxable interest on debt securities
7 8 7 (1)(12.5)— —
Dividends on Federal Home Loan Bank stock
585 792 1,022 (207)(26.1)(437)(42.8)
Other interest income
909 1,291 1,993 (382)(29.6)(1,084)(54.4)
Total interest and dividend income
74,982 78,837 79,463 (3,855)(4.9)(4,481)(5.6)
Interest expense:
Deposits
27,370 30,060 31,748 (2,690)(8.9)(4,378)(13.8)
Federal Home Loan Bank advances
6,777 7,696 10,946 (919)(11.9)(4,169)(38.1)
Junior subordinated debentures
310 333 347 (23)(6.9)(37)(10.7)
Total interest expense34,457 38,089 43,041 (3,632)(9.5)(8,584)(19.9)
Net interest income40,525 40,748 36,422 (223)(0.5)4,103 11.3
Provision for credit losses4,000 600 1,200 3,400 566.72,800 233.3
Net interest income after provision for credit losses36,525 40,148 35,222 (3,623)(9.0)1,303 3.7
Noninterest income:
Wealth management revenues
10,647 10,852 9,891 (205)(1.9)756 7.6
Mortgage banking revenues
3,045 3,250 2,304 (205)(6.3)741 32.2
Card interchange fees
1,385 1,217 1,509 168 13.8(124)(8.2)
Service charges on deposit accounts
785 843 744 (58)(6.9)41 5.5
Loan related derivative income227 1,081 101 (854)(79.0)126 124.8
Income from bank-owned life insurance
885 886 769 (1)(0.1)116 15.1
Gain on sale of bank-owned properties, net — — 6,994 — —(6,994)(100.0)
Other income
329 374 331 (45)(12.0)(2)(0.6)
Total noninterest income17,303 18,503 22,643 (1,200)(6.5)(5,340)(23.6)
Noninterest expense:
Salaries and employee benefits
24,340 23,647 22,422 693 2.91,918 8.6
Outsourced services
4,383 4,067 4,346 316 7.837 0.9
Net occupancy
2,890 2,642 2,741 248 9.4149 5.4
Equipment
903 852 891 51 6.012 1.3
Legal, audit, and professional fees936 667 750 269 40.3186 24.8
FDIC deposit insurance costs
935 1,028 1,262 (93)(9.0)(327)(25.9)
Advertising and promotion
547 1,029 410 (482)(46.8)137 33.4
Amortization of intangibles
155 155 204 — —(49)(24.0)
Pension plan settlement charge— — 6,436 — —(6,436)(100.0)
Other expenses
2,676 3,896 2,734 (1,220)(31.3)(58)(2.1)
Total noninterest expense
37,765 37,983 42,196 (218)(0.6)(4,431)(10.5)
Income before income taxes16,063 20,668 15,669 (4,605)(22.3)394 2.5
Income tax expense3,463 4,694 3,490 (1,231)(26.2)(27)(0.8)
Net income$12,600 $15,974 $12,179 ($3,374)(21.1%)$421 3.5%
Weighted avg common shares outstanding - basic19,039 19,034 19,276 
Weighted avg common shares outstanding - diluted19,173 19,159 19,370 
Per share information:
Basic earnings per common share$0.66 $0.84 $0.63 ($0.18)(21.4%)$0.03 4.8%
Diluted earnings per common share$0.66 $0.83 $0.63 ($0.17)(20.5%)$0.03 4.8%
Cash dividends declared$0.56 $0.56 $0.56 $— —%$— —%
-7-

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)
Mar 31,
2026		Dec 31,
2025		Mar 31,
2025		Mar 31, 2026 vs. Dec 31, 2025Mar 31, 2026 vs. Mar 31, 2025
Share and Equity Related Data:
Book value per share$28.72 $28.56 $27.06 $0.16 0.6%$1.66 6.1%
Tangible book value per share (non-GAAP) (1)
$25.14 $24.97 $23.61 $0.17 0.7%$1.53 6.5%
Market value per share$33.46 $29.55 $30.86 $3.91 13.2%$2.60 8.4%
Shares issued at end of period19,562 19,562 19,562 — shs—%— shs—%
Shares outstanding at end of period19,041 19,035 19,276 6 shs—%(235) shs(1.2%)
Capital Ratios (2):
Tier 1 risk-based capital 12.46%12.14%12.23%32 bps23 bps
Total risk-based capital 13.38%12.95%13.13%43 bps25 bps
Tier 1 leverage ratio8.80%8.65%8.45%15 bps35 bps
Common equity tier 111.99%11.68%11.76%31 bps23 bps
Balance Sheet Ratios:
Equity to assets8.47%8.21%7.92%26 bps55 bps
Tangible equity to tangible assets (non-GAAP) (1)
7.49%7.25%6.98%24 bps51 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)5
Adjusted return on average assets (non-GAAP) (1)
0.78%0.95%0.71%(17)7
Return 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).

-8-

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars in thousands)
Q1 2026 vs. Q4 2025Q1 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%)$811 8.3%
Transaction-based revenues67 103 122 (36)(35.0)(55)(45.1)
Total wealth management revenues$10,647 $10,852 $9,891 ($205)(1.9%)$756 7.6%
Assets Under Administration (AUA):
Spot balance at end of period (1)
$7,495,602 $7,777,250 $6,818,390 ($281,648)(3.6%)$677,212 9.9%
Percentage of AUA that are managed assets
91%91%91%
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (2)
$2,370 $3,424 $1,575 ($1,054)(30.8%)$795 50.5%
Changes in fair value, net (3)
164 (610)133 774 126.931 23.3
Loan servicing fee income, net (4)
511 436 596 75 17.2(85)(14.3)
Total mortgage banking revenues$3,045 $3,250 $2,304 ($205)(6.3%)$741 32.2%
Residential Mortgage Loan Originations:
Originations for retention in portfolio (5)
$36,813 $46,912 $27,662 ($10,099)(21.5%)$9,151 33.1%
Originations for sale to secondary market (6)
118,351 162,410 75,519 (44,059)(27.1)42,832 56.7
Total mortgage loan originations$155,164 $209,322 $103,181 ($54,158)(25.9%)$51,983 50.4%
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)
116,853 150,507 58,680 (33,654)(22.4)58,173 99.1
Total mortgage loans sold$121,523 $157,968 $75,499 ($36,445)(23.1%)$46,024 61.0%
(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).
-9-

Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN COMPOSITION
(Unaudited; Dollars in thousands)
Mar 31, 2026 vs. Dec 31, 2025Mar 31, 2026 vs. Mar 31, 2025
Mar 31,
2026		Dec 31,
2025		Mar 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 & industrial568,177 564,082 535,030 4,095 0.733,147 6.2
Total commercial2,652,981 2,748,067 2,669,137 (95,086)(3.5)(16,156)(0.6)
Residential real estate (2)
2,029,092 2,050,399 2,113,307 (21,307)(1.0)(84,215)(4.0)
Home equity316,353 318,862 296,563 (2,509)(0.8)19,790 6.7
Other16,459 17,060 17,203 (601)(3.5)(744)(4.3)
Total consumer332,812 335,922 313,766 (3,110)(0.9)19,046 6.1
Total 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.

-10-

Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN COMPOSITION
(Unaudited; Dollars in thousands)
Mar 31, 2026Dec 31, 2025Balance Change
Balance% of TotalBalance% of Total$%
Commercial Real Estate Portfolio Segmentation:
Multi-family$639,976 31%$667,388 31%($27,412)(4.1%)
Retail407,029 20 436,961 20 (29,932)(6.9)
Industrial and warehouse 339,839 16 380,403 17 (40,564)(10.7)
Hospitality242,229 12 230,549 11 11,680 5.1 
Office 231,007 11 237,706 11 (6,699)(2.8)
Healthcare Facility156,138 7 156,871 7 (733)(0.5)
Mixed-use 27,459 1 26,440 1 1,019 3.9 
Other41,127 2 47,667 2 (6,540)(13.7)
Total commercial real estate loans
$2,084,804 100%$2,183,985 100%($99,181)(4.5%)
Commercial & Industrial Portfolio Segmentation:
Healthcare and social assistance$149,292 26%$150,061 27%($769)(0.5%)
Retail trade62,866 11 48,289 9 14,577 30.2 
Transportation and warehousing
55,864 10 55,315 10 549 1.0 
Educational services53,831 9 54,245 10 (414)(0.8)
Accommodation and food services32,982 6 26,431 5 6,551 24.8 
Finance and insurance26,834 5 22,727 4 4,107 18.1 
Manufacturing25,540 4 23,714 4 1,826 7.7 
Arts, entertainment, and recreation
24,947 4 22,043 4 2,904 13.2 
Information
21,681 4 21,843 4 (162)(0.7)
Real estate rental and leasing20,009 4 57,113 10 (37,104)(65.0)
Professional, scientific, and technical services
19,625 3 12,490 2 7,135 57.1 
Public administration
6,163 1 1,448 — 4,715 325.6 
Other
68,543 13 68,363 11 180 0.3 
Total commercial & industrial loans
$568,177 100%$564,082 100%$4,095 0.7%

Weighted AverageAsset 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 $10,673 59%1.59x$56,580 $— $28,474 $22,349 
Class B70,776 3,539 54%1.48x67,003 3,773 — — 
Class C10,416 1,488 56%1.35x10,416 — — — 
Medical Office30,666 6,133 56%1.54x30,666 — — — 
Lab Space34,095 18,289 103%—x— 27,521 6,574 6,574 
Total office at Mar 31, 2026 (1)
$231,007 $5,567 64%1.29x$164,665 $31,294 $35,048 $28,923 
Total office at Dec 31, 2025
$237,706 $5,611 60%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.
-11-

Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY
(Unaudited; Dollars in thousands)
Mar 31, 2026 vs. Dec 31, 2025Mar 31, 2026 vs. Mar 31, 2025
Mar 31,
2026		Dec 31,
2025		Mar 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)758,524 756,794 654,599 1,730 0.2103,925 15.9
NOW accounts690,987 715,114 686,666 (24,127)(3.4)4,321 0.6
Money market accounts1,132,421 1,185,420 1,202,703 (52,999)(4.5)(70,282)(5.8)
Savings accounts830,855 796,887 630,413 33,968 4.3200,442 31.8
Time deposits (in-market)1,166,431 1,220,683 1,213,382 (54,252)(4.4)(46,951)(3.9)
In-market deposits5,164,633 5,269,990 5,013,353 (105,357)(2.0)151,280 3.0
Wholesale brokered time deposits— — 27,228 — —(27,228)(100.0)
Total deposits
$5,164,633 $5,269,990 $5,040,581 ($105,357)(2.0%)$124,052 2.5%


Mar 31,
2026		Dec 31,
2025		Mar 31, 2026 vs. Dec 31, 2025
Contingent Liquidity:
Federal Home Loan Bank of Boston$1,392,049 $1,356,005 $36,044 2.7%
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 $18,555 0.9%
(1)    Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs.
-12-

Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
Mar 31, 2026 vs.
Mar 31,
2026		Dec 31,
2025		Mar 31,
2025		Dec 31,
2025 (bps)		Mar 31,
2025 (bps)
Asset Quality Ratios:
Nonperforming assets to total assets0.63%0.20%0.33%43 30 
Nonaccrual loans to total loans0.81%0.25%0.42%56 39 
Total past due loans to total loans0.33%0.22%0.20%11 13 
ACL on loans to nonaccrual loans101.70%288.14%189.85%(18,644)(8,815)
ACL on loans to total loans0.82%0.73%0.81%9 1 
Mar 31, 2026 vs. Dec 31, 2025Mar 31, 2026 vs. Mar 31, 2025
Mar 31,
2026		Dec 31,
2025		Mar 31,
2025		$%$%
Nonperforming Assets:
Commercial real estate$28,923 $— $7,605 $28,923 —%$21,318 280.3%
Commercial & industrial126 — 1,140 126 —(1,014)(88.9)
Total commercial29,049 — 8,745 29,049 —20,304 232.2
Residential real estate9,631 11,099 11,102 (1,468)(13.2)(1,471)(13.2)
Home equity 1,757 1,824 1,779 (67)(3.7)(22)(1.2)
Other consumer3 — — 3 —3 —
Total consumer1,760 1,824 1,779 (64)(3.5)(19)(1.1)
Total nonaccrual loans40,440 12,923 21,626 27,517 212.918,814 87.0
Other real estate owned— — — — —— —
Total nonperforming assets$40,440 $12,923 $21,626 $27,517 212.9%$18,814 87.0%
Past Due Loans (30 days or more past due):
Commercial real estate$6,574 $648 $— $5,926 914.5%$6,574 100.0%
Commercial & industrial470 7 1,146 463 6,614.3(676)(59.0)
Total commercial7,044 655 1,146 6,389 975.45,898 514.7
Residential real estate6,627 9,095 6,439 (2,468)(27.1)188 2.9
Home equity2,746 1,607 2,578 1,139 70.9168 6.5
Other consumer31 26 32 5 19.2(1)(3.1)
Total consumer2,777 1,633 2,610 1,144 70.1167 6.4
Total past due loans$16,448 $11,383 $10,195 $5,065 44.5%$6,253 61.3%
Accruing loans 90 days or more past due$— $— $— $— —%$— —%
Nonaccrual loans included in past due loans$12,297 $8,348 $7,354 $3,949 47.3%$4,943 67.2%

-13-

Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
For the Three Months Ended
Mar 31,
2026		Dec 31,
2025		Mar 31,
2025
Nonaccrual Loan Activity:
Balance at beginning of period$12,923 $14,016 $23,307 
Additions to nonaccrual status29,064 1,851 2,142 
Loans 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 $41,960 
Provision for credit losses on loans (1)
3,900 500 1,400 
Charge-offs(84)(87)(2,522)
Recoveries74 247 218 
Balance 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 $1,440 
Provision for credit losses on unfunded commitments (1)
100 100 (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.




-14-

Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
Q1 2026 vs. Q4 2025Q1 2026 vs. Q1 2025
Q1 2026Q4 2025Q1 2025$%$%
Provision for Credit Losses:
Provision for credit losses on loans$3,900 $500 $1,400 $3,400 680.0%$2,500 178.6%
Provision for credit losses on unfunded commitments100 100 (200)— —300 150.0
Provision for credit losses$4,000 $600 $1,200 $3,400 566.7%$2,800 233.3%
Net Loan Charge-Offs (Recoveries):
Commercial real estate$— ($118)$2,250 $118 100.0%($2,250)(100.0%)
Commercial & industrial(42)(111)3 69 62.2(45)(1500.0)
Total commercial(42)(229)2,253 187 81.7(2,295)(101.9)
Residential real estate(1)— — (1)—(1)—
Home equity(1)(1)(1)— —— —
Other consumer54 70 52 (16)(22.9)2 3.8
Total consumer53 69 51 (16)(23.2)2 3.9
Total$10 ($160)$2,304 $170 106.3%($2,294)(99.6%)

-15-

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED 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, 2026Dec 31, 2025Change
Average BalanceInterestYield/
Rate		Average BalanceInterestYield/
Rate		Average BalanceInterestYield/
Rate
Assets:
Cash, federal funds sold, and short-term investments$101,091 $909 3.65%$131,215 $1,291 3.90%($30,124)($382)(0.25%)
Mortgage loans held for sale24,760 375 6.14 38,696 606 6.21 (13,936)(231)(0.07)
Taxable debt securities1,022,612 8,768 3.48 1,051,549 9,100 3.43 (28,937)(332)0.05 
Nontaxable debt securities650 8 4.99 650 8 4.88 — — 0.11 
Total securities
1,023,262 8,776 3.48 1,052,199 9,108 3.43 (28,937)(332)0.05 
FHLB stock30,566 585 7.76 32,918 792 9.55 (2,352)(207)(1.79)
Commercial real estate2,148,792 28,718 5.42 2,148,052 30,724 5.67 740 (2,006)(0.25)
Commercial & industrial571,498 7,921 5.62 561,035 8,292 5.86 10,463 (371)(0.24)
Total commercial
2,720,290 36,639 5.46 2,709,087 39,016 5.71 11,203 (2,377)(0.25)
Residential real estate
2,035,597 22,723 4.53 2,062,589 22,829 4.39 (26,992)(106)0.14 
Home equity316,660 4,931 6.32 313,759 5,194 6.57 2,901 (263)(0.25)
Other16,589 215 5.26 16,764 216 5.11 (175)(1)0.15 
Total consumer333,249 5,146 6.26 330,523 5,410 6.49 2,726 (264)(0.23)
Total loans
5,089,136 64,508 5.14 5,102,199 67,255 5.23 (13,063)(2,747)(0.09)
Total interest-earning assets
6,268,815 75,153 4.86 6,357,227 79,052 4.93 (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 $5,889 3.19%$734,617 $6,375 3.44%$13,616 ($486)(0.25%)
NOW accounts676,240 259 0.16 671,840 348 0.21 4,400 (89)(0.05)
Money market accounts1,162,609 7,788 2.72 1,198,818 8,846 2.93 (36,209)(1,058)(0.21)
Savings accounts810,040 3,418 1.71 757,843 3,456 1.81 52,197 (38)(0.10)
Time deposits (in-market)1,190,414 10,016 3.41 1,225,779 11,035 3.57 (35,365)(1,019)(0.16)
Interest-bearing in-market deposits4,587,536 27,370 2.42 4,588,897 30,060 2.60 (1,361)(2,690)(0.18)
Wholesale brokered time deposits— — — — — — — — — 
Total interest-bearing deposits4,587,536 27,370 2.42 4,588,897 30,060 2.60 (1,361)(2,690)(0.18)
FHLB advances660,667 6,777 4.16 708,174 7,696 4.31 (47,507)(919)(0.15)
Junior subordinated debentures22,681 310 5.54 22,681 333 5.82 — (23)(0.28)
Total interest-bearing liabilities5,270,884 34,457 2.65 5,319,752 38,089 2.84 (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 spread2.21%2.09%0.12%
Net interest margin2.63%2.56%0.07%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Three Months EndedMar 31, 2026Dec 31, 2025Change
Commercial loans$168 $214 ($46)
Nontaxable debt securities1 — 1 
Total$169 $214 ($45)
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Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures
(Unaudited; Dollars in thousands, except per share amounts)
The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, and adjusted net income:
Q1 2026 vs. Q4 2025Q1 2026 vs. Q1 2025
Q1 2026Q4 2025Q1 2025$%$%
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%)$1,654 10.6%
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%)$2,005 5.6%
Adjusted Income Before Income Taxes:
Income before income taxes$16,063 $20,668 $15,669 ($4,605)(22.3%)$394 2.5%
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%)$952 6.3%
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%)$114 3.4%
Adjusted Net Income:
Net income, as reported$12,600 $15,974 $12,179 ($3,374)(21.1%)$421 3.5%
Less: total adjustments, after-tax— — 417 — —(417)(100.0)
Adjusted net income (non-GAAP)$12,600 $15,974 $11,762 ($3,374)(21.1%)$838 7.1%

-17-

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)
(Unaudited; Dollars in thousands, except per share amounts)
The following table presents adjusted diluted earnings per common share and adjusted efficiency ratio:
​
Q1 2026Q4 2025Q1 2025Q1 2026 vs. Q4 2025Q1 2026 vs. Q1 2025
Adjusted Diluted Earnings per Common Share:
Diluted earnings per common share, as reported (1)
$0.66 $0.83 $0.63 ($0.17)(20.5%)$0.03 4.8%
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%)$0.05 8.2%
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 2025Q1 2026 vs. Q4 2025Q1 2026 vs. Q1 2025
Adjusted Return on Average Assets:
Net income, as reported$12,600 $15,974 $12,179 ($3,374)(21.1%)$421 3.5%
Less: total adjustments, after-tax— — 417 — —(417)(100.0)
Adjusted net income (non-GAAP)$12,600 $15,974 $11,762 ($3,374)(21.1%)$838 7.1%
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) bps5 bps
Adjusted return on average assets (non-GAAP) (2)
0.78%0.95%0.71%(17) bps7 bps
Return on Average Tangible Assets:
Adjusted net income (non-GAAP)$12,600 $15,974 $11,762 ($3,374)(21.1%)$838 7.1%
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:
Goodwill63,909 63,909 63,909 — —— —
Identifiable intangible assets, net4,224 4,378 2,781 (154)(3.5)1,443 51.9
Total 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) bps5 bps
Return on average tangible assets (non-GAAP) (3)
0.79%0.96%0.71%(17) bps8 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.
-18-

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)
(Unaudited; Dollars in thousands, except per share amounts)
The following table presents adjusted return on average equity and return on average tangible equity:
​
Q1 2026Q4 2025Q1 2025Q1 2026 vs. Q4 2025Q1 2026 vs. Q1 2025
Adjusted Return on Average Equity:
Net income, as reported$12,600$15,974$12,179($3,374)(21.1%)$421 3.5%
Less: total adjustments, after-tax——417— —(417)(100.0)
Adjusted net income (non-GAAP)$12,600$15,974$11,762($3,374)(21.1%)$838 7.1%
Total average equity, as reported$553,374$541,465$513,048$11,909 2.2%$40,326 7.9%
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%)$838 7.1%
Total average equity, as reported$553,374$541,465$513,048$11,909 2.2%$40,326 7.9%
Less average balances of:
Goodwill63,90963,90963,909— —— —
Identifiable intangible assets, net4,2244,3782,781(154)(3.5)1,443 51.9
Total average tangible equity (non-GAAP)$485,241$473,178$446,358$12,063 2.5%$38,883 8.7%
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.


-19-

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued)
(Unaudited; Dollars in thousands, except per share amounts)
The following table presents tangible book value per share and the ratio of tangible equity to tangible assets:
Mar 31,
2026		Dec 31,
2025		Mar 31,
2025		Mar 31, 2026 vs. Dec 31, 2025Mar 31, 2026 vs. Mar 31, 2025
Tangible Book Value per Share:
Total shareholders' equity, as reported$546,773 $543,584 $521,680 $3,189 0.6%$25,093 4.8%
Less end of period balances of:
Goodwill63,909 63,909 63,909 — — %— — %
Identifiable intangible assets, net4,148 4,303 2,682 (155)(3.6)%1,466 54.7 %
Total tangible shareholders' equity (non-GAAP)$478,716 $475,372 $455,089 $3,344 0.7%$23,627 5.2%
Shares outstanding, as reported19,041 19,035 19,276 6 —%(235)(1.2%)
Book value per share$28.72 $28.56 $27.06 $0.16 0.6%$1.66 6.1%
Tangible book value per share (non-GAAP)$25.14 $24.97 $23.61 $0.17 0.7%$1.53 6.5%
Tangible Equity to Tangible Assets:
Total tangible shareholders' equity$478,716 $475,372 $455,089 $3,344 0.7%$23,627 5.2%
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:
Goodwill63,909 63,909 63,909 — —%— —%
Identifiable intangible assets, net4,148 4,303 2,682 (155)(3.6%)1,466 54.7%
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 bps55 bps
Tangible equity to tangible assets (non-GAAP)7.49%7.25%6.98%24 bps51 bps
-20-

Source: View Original Filing on SEC EDGAR

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