Technology
Washington Trust Reports Third Quarter 2026 Results
Published
15 hours agoon
By
WESTERLY, R.I., Oct. 19, 2026 /PRNewswire/ — Washington Trust Bancorp, Inc. (Nasdaq: WASH; “Washington Trust” or the “Corporation”), today reported third quarter 2026 net income of $19.4 million, up by $3.4 million, or 21%, from the preceding quarter. Diluted earnings per share was $1.01 for the third quarter of 2026, up by $0.18 from the preceding quarter. Compared to the third quarter of 2025, net income was up by $8.5 million, or $0.45 per diluted share.
“We delivered another strong quarter marked by growth in earnings and net interest income, continued margin expansion and improved operating efficiency,” said Washington Trust Chairman and Chief Executive Officer Edward O. “Ned” Handy III. “By combining personalized service and trusted advice with the capabilities of a regional bank, we are able to provide customers with a level of service, expertise and convenience that stands apart from other community banks our size. We continue to focus on leveraging these strengths to support prudent growth and deliver long-term value for our shareholders.”
THIRD QUARTER HIGHLIGHTS (Q3 2026 vs. Q2 2026, unless otherwise noted):
Profitability metrics improved with returns on average equity and average assets of 13.89% and 1.17%, compared to 11.61% and 0.99%, respectively.Net interest margin (“NIM”) expanded to 2.84%, up by 11 basis points.Asset quality metrics improved, reflecting the resolution of a commercial real estate office loan.The provision for credit losses was $1.8 million for the third quarter.Total noninterest income was up by 9%.Total noninterest expenses increased modestly by 0.5%.Loan balances were up by $61.8 million from June 30, 2026.Deposits reached an all-time high of $5.4 billion and were up by $77.1 million from June 30, 2026.Capital ratios remained strong, with a common equity tier 1 ratio of 11.93% at September 30, 2026.
RESULTS OF OPERATIONS (Q3 2026 vs. Q2 2026, unless otherwise noted):
Net Interest Income
Net interest income was up by $2.9 million, or 7%, and NIM was up by 11 basis points. Compared to the third quarter of 2025, net interest income was up by $5.9 million, or 15%, and NIM was up by 44 basis points.
Net interest income for the third quarter of 2026 amounted to $44.7 million and included the receipt of previously unrecognized second quarter interest income of $283 thousand (equivalent to $0.01 per diluted share or a 2 basis points benefit to NIM) associated with the resolution of a commercial real estate office loan that returned to accruing status in the third quarter.Average interest-earning assets increased by $104 million, and the yield was up by 7 basis points.Average interest-bearing liabilities increased by $52 million, and the rate was down by 3 basis points.
Noninterest Income
Noninterest income was up by $1.6 million, or 9%. Compared to the third quarter of 2025, noninterest income was up by $2.6 million, or 15%.
Wealth management revenues decreased by $112 thousand, or 1%, as increased asset-based revenues were offset by a seasonal decline in tax servicing fee income. Compared to the third quarter of 2025, wealth management revenues increased by $716 thousand, or 7%.Mortgage banking revenues were down by $318 thousand, or 9%, reflecting a decrease in the mortgage pipeline and rising market interest rates. Compared to the third quarter of 2025, mortgage banking revenues were down by 10%.Loan related derivative income totaled $1.5 million, up by $924 thousand, driven by increased commercial borrower demand for interest rate swap transactions.Income from bank-owned life insurance totaled $1.9 million, up by $959 thousand, due to the recognition of a non-taxable gain of $954 thousand (equivalent to $0.05 per diluted share).
Noninterest Expense
Noninterest expense was up by $200 thousand, or 0.5%. Compared to the third quarter of 2025, noninterest expense was up by $3.1 million, or 9%.
Salaries and employee benefits expense decreased by $188 thousand, or 0.7%. Compared to the third quarter of 2025, salaries and employee benefits expense increased by $2.5 million, or 11%, reflecting annual merit and staffing increases.All other noninterest expenses increased by $388 thousand, or 3%, largely reflecting volume-related increases in outsourced services expense. Compared to the third quarter of 2025, all other noninterest expenses increased by $621 thousand, or 5%.
Income Tax
Income tax expense was up by $692 thousand. The effective tax rate was 20.4%, compared to 21.2%. The Corporation expects its full-year 2026 effective tax rate to be approximately 21.5%.
FINANCIAL CONDITION (Sep 30, 2026 vs. Jun 30, 2026, unless otherwise noted):
Investment Securities
The securities portfolio totaled $818 million, down by $68 million, or 8%, reflecting a decrease of $44 million in the fair value of available for sale securities, as well as routine pay-downs. The securities portfolio represented 13% of total assets, compared to 14%.
Loans
Total loans amounted to $5.2 billion, up by $62 million, or 1%.
Commercial loans increased by $62 million, or 2%, driven by growth in the commercial real estate portfolio.Residential real estate loans decreased by $12 million, or 1%.Consumer loans increased by $12 million, or 3%.
Deposits and Borrowings
Total deposits amounted to $5.4 billion, and were up by $77 million, or 1%. Compared to September 30, 2025, deposits were up by $213 million, or 4%.
There were no wholesale brokered deposits at September 30, 2026, June 30, 2026, or September 30, 2025.
FHLB advances totaled $376 million, and were down by $80 million, or 18%. Compared to September 30, 2025, FHLB advances were down by $415 million, or 52%. This decline reflected increases in deposits and timing of liquidity management activities.
Contingent liquidity amounted to $2.1 billion at September 30, 2026 and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.
Capital and Dividends
Total shareholders’ equity was $530.8 million, down by $22.8 million, or 4%, as net income was offset by a decline in the accumulated other comprehensive income (“AOCI”) component of shareholders’ equity, as well as quarterly dividend declarations. The decrease in AOCI was driven by the reduction in fair value of available for sale debt securities due to changes in market interest rates.
The Board of Directors declared a quarterly dividend of 56 cents per share for the third quarter. The dividend was paid on October 9, 2026 to shareholders of record on October 1, 2026.Capital levels exceeded the regulatory minimum levels to be considered well capitalized, with a common equity tier 1 ratio of 11.93%, compared to 11.89%.Book value per share was $27.82, compared to $29.02.
ASSET QUALITY (Sep 30, 2026 vs. Jun 30, 2026, unless otherwise noted):
Nonaccrual loans were $24.5 million, or 0.48% of total loans, down from $39.8 million, or 0.78%. Past due loans were $27.9 million, or 0.54% of total loans, down from $41.4 million, or 0.81%.
The improvement in asset quality was driven by the resolution of one commercial real estate office loan for $22.3 million that was previously placed on nonaccrual status in the first quarter of 2026. In the third quarter, this loan was restructured and bifurcated, resulting in $18.5 million being returned to accruing status and $3.8 million being charged off.
The provision for credit losses totaled $1.8 million in the third quarter, compared to $1.6 million in the prior quarter.
The allowance for credit losses (“ACL”) on loans amounted to $40.5 million, or 0.78% of total loans, compared to $42.6 million, or 0.83%. The ACL on loans to total loans (coverage ratio) is affected by the timing and extent of charge-offs. Net charge-offs totaled $3.9 million in the third quarter, compared to $55 thousand in the preceding quarter.
Conference Call
Washington Trust will host a conference call to discuss its third quarter results, business highlights, and outlook on October 20, 2026, at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-461-5787 and enter Meeting ID 797102163. A replay of the call will be available on Washington Trust’s investor relations website, https://ir.washtrust.com, in the events section under “Q3 – 2026 Washington Trust Bancorp, Inc. Earnings Conference Call Webcast”.
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, 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 assets under administration;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 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.
Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; Dollars in thousands)
Sep 30, 2026 vs.
Jun 30, 2026
Sep 30, 2026 vs.
Sep 30, 2025
Sep 30,
2026
Jun 30,
2026
Sep 30,
2025
$
%
$
%
Assets:
Cash and due from banks
$21,675
$26,443
$35,604
(4,768)
(18.0 %)
($13,929)
(39.1 %)
Interest-earning deposits with correspondent banks
63,892
89,069
143,886
(25,177)
(28.3)
(79,994)
(55.6)
Short-term investments
9,924
11,883
12,841
(1,959)
(16.5)
(2,917)
(22.7)
Mortgage loans held for sale, at fair value
31,530
33,608
31,318
(2,078)
(6.2)
212
0.7
Available for sale debt securities, at fair value
817,801
885,321
962,466
(67,520)
(7.6)
(144,665)
(15.0)
Federal Home Loan Bank stock, at cost
19,715
23,809
36,331
(4,094)
(17.2)
(16,616)
(45.7)
Loans:
Total loans
5,164,852
5,103,069
5,122,582
61,783
1.2
42,270
0.8
Less: allowance for credit losses on loans
40,488
42,571
36,576
(2,083)
(4.9)
3,912
10.7
Net loans
5,124,364
5,060,498
5,086,006
63,866
1.3
38,358
0.8
Premises and equipment, net
27,992
26,171
25,065
1,821
7.0
2,927
11.7
Operating lease right-of-use assets
34,130
35,029
35,968
(899)
(2.6)
(1,838)
(5.1)
Investment in bank-owned life insurance
115,172
116,914
114,240
(1,742)
(1.5)
932
0.8
Goodwill
63,909
63,909
63,909
—
—
—
—
Identifiable intangible assets, net
3,837
3,992
4,458
(155)
(3.9)
(621)
(13.9)
Other assets
204,550
171,258
165,829
33,292
19.4
38,721
23.3
Total assets
$6,538,491
$6,547,904
$6,717,921
($9,413)
(0.1 %)
($179,430)
(2.7 %)
Liabilities:
Deposits:
Noninterest-bearing deposits
$690,665
$644,011
$671,309
$46,654
7.2 %
$19,356
2.9 %
Interest-bearing deposits
4,745,351
4,714,862
4,551,527
30,489
0.6
193,824
4.3
Total deposits
5,436,016
5,358,873
5,222,836
77,143
1.4
213,180
4.1
Federal Home Loan Bank advances
376,000
456,000
791,000
(80,000)
(17.5)
(415,000)
(52.5)
Junior subordinated debentures
22,681
22,681
22,681
—
—
—
—
Operating lease liabilities
37,083
37,935
38,741
(852)
(2.2)
(1,658)
(4.3)
Other liabilities
135,944
118,892
109,642
17,052
14.3
26,302
24.0
Total liabilities
6,007,724
5,994,381
6,184,900
13,343
0.2
(177,176)
(2.9)
Shareholders’ Equity:
Common stock
1,223
1,223
1,223
—
—
—
—
Paid-in capital
198,854
198,088
198,058
766
0.4
796
0.4
Retained earnings
458,174
449,650
437,545
8,524
1.9
20,629
4.7
Accumulated other comprehensive loss
(109,797)
(77,360)
(84,828)
(32,437)
(41.9)
(24,969)
(29.4)
Treasury stock, at cost
(17,687)
(18,078)
(18,977)
391
2.2
1,290
6.8
Total shareholders’ equity
530,767
553,523
533,021
(22,756)
(4.1)
(2,254)
(0.4)
Total liabilities and shareholders’ equity
$6,538,491
$6,547,904
$6,717,921
($9,413)
(0.1 %)
($179,430)
(2.7 %)
Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars and shares in thousands, except per share amounts)
Q3 2026 vs. Q2 2026
Q3 2026 vs. Q3 2025
Q3 2026
Q2 2026
Q3 2025
$
%
$
%
Interest income:
Interest and fees on loans
$68,066
$64,711
$68,785
$3,355
5.2 %
($719)
(1.0 %)
Interest on mortgage loans held for sale
557
478
542
79
16.5
15
2.8
Taxable interest on debt securities
8,250
8,468
9,372
(218)
(2.6)
(1,122)
(12.0)
Nontaxable interest on debt securities
7
8
7
(1)
(12.5)
—
—
Dividends on Federal Home Loan Bank stock
425
506
764
(81)
(16.0)
(339)
(44.4)
Other interest income
1,100
998
1,475
102
10.2
(375)
(25.4)
Total interest and dividend income
78,405
75,169
80,945
3,236
4.3
(2,540)
(3.1)
Interest expense:
Deposits
29,009
27,567
31,223
1,442
5.2
(2,214)
(7.1)
Federal Home Loan Bank advances
4,392
5,491
10,542
(1,099)
(20.0)
(6,150)
(58.3)
Junior subordinated debentures
312
308
347
4
1.3
(35)
(10.1)
Total interest expense
33,713
33,366
42,112
347
1.0
(8,399)
(19.9)
Net interest income
44,692
41,803
38,833
2,889
6.9
5,859
15.1
Provision for credit losses
1,800
1,600
6,800
200
12.5
(5,000)
(73.5)
Net interest income after provision for credit losses
42,892
40,203
32,033
2,689
6.7
10,859
33.9
Noninterest income:
Wealth management revenues
11,089
11,201
10,373
(112)
(1.0)
716
6.9
Mortgage banking revenues
3,155
3,473
3,501
(318)
(9.2)
(346)
(9.9)
Card interchange fees
1,317
1,305
1,163
12
0.9
154
13.2
Service charges on deposit accounts
952
842
841
110
13.1
111
13.2
Loan related derivative income
1,507
583
271
924
158.5
1,236
456.1
Income from bank-owned life insurance
1,863
904
868
959
106.1
995
114.6
Other income
382
354
619
28
7.9
(237)
(38.3)
Total noninterest income
20,265
18,662
17,636
1,603
8.6
2,629
14.9
Noninterest expense:
Salaries and employee benefits
25,124
25,312
22,674
(188)
(0.7)
2,450
10.8
Outsourced services
4,605
4,266
4,120
339
7.9
485
11.8
Net occupancy
2,733
2,735
2,691
(2)
(0.1)
42
1.6
Equipment
930
887
917
43
4.8
13
1.4
Legal, audit, and professional fees
802
824
719
(22)
(2.7)
83
11.5
FDIC deposit insurance costs
794
952
1,055
(158)
(16.6)
(261)
(24.7)
Advertising and promotion
703
771
763
(68)
(8.8)
(60)
(7.9)
Amortization of intangibles
155
156
200
(1)
(0.6)
(45)
(22.5)
Other expenses
2,951
2,694
2,587
257
9.5
364
14.1
Total noninterest expense
38,797
38,597
35,726
200
0.5
3,071
8.6
Income before income taxes
24,360
20,268
13,943
4,092
20.2
10,417
74.7
Income tax expense
4,979
4,287
3,097
692
16.1
1,882
60.8
Net income
$19,381
$15,981
$10,846
$3,400
21.3 %
$8,535
78.7 %
Weighted avg common shares outstanding – basic
19,076
19,064
19,128
Weighted avg common shares outstanding – diluted
19,264
19,204
19,243
Per share information:
Basic earnings per common share
$1.02
$0.84
$0.57
$0.18
21.4 %
$0.45
78.9 %
Diluted earnings per common share
$1.01
$0.83
$0.56
$0.18
21.7 %
$0.45
80.4 %
Cash dividends declared
$0.56
$0.56
$0.56
$—
— %
$—
— %
Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars and shares in thousands, except per share amounts)
Change
For the Nine Months Ended Sep 30,
2026
2025
$
%
Interest income:
Interest and fees on loans
$197,115
$202,786
($5,671)
(2.8 %)
Interest on mortgage loans held for sale
1,410
1,942
(532)
(27.4)
Taxable interest on debt securities
25,486
27,429
(1,943)
(7.1)
Nontaxable interest on debt securities
22
22
—
—
Dividends on Federal Home Loan Bank stock
1,516
2,578
(1,062)
(41.2)
Other interest income
3,007
4,497
(1,490)
(33.1)
Total interest and dividend income
228,556
239,254
(10,698)
(4.5)
Interest expense:
Deposits
83,946
93,835
(9,889)
(10.5)
Federal Home Loan Bank advances
16,660
31,939
(15,279)
(47.8)
Junior subordinated debentures
930
1,040
(110)
(10.6)
Total interest expense
101,536
126,814
(25,278)
(19.9)
Net interest income
127,020
112,440
14,580
13.0
Provision for credit losses
7,400
8,600
(1,200)
(14.0)
Net interest income after provision for credit losses
119,620
103,840
15,780
15.2
Noninterest income:
Wealth management revenues
32,937
30,384
2,553
8.4
Mortgage banking revenues
9,673
8,839
834
9.4
Card interchange fees
4,007
3,919
88
2.2
Service charges on deposit accounts
2,579
2,393
186
7.8
Loan related derivative income
2,317
1,048
1,269
121.1
Income from bank-owned life insurance
3,652
2,463
1,189
48.3
Gain on sale of bank-owned properties, net
—
6,994
(6,994)
(100.0)
Other income
1,065
1,317
(252)
(19.1)
Total noninterest income
56,230
57,357
(1,127)
(2.0)
Noninterest expense:
Salaries and employee benefits
74,776
68,121
6,655
9.8
Outsourced services
13,254
12,870
384
3.0
Net occupancy
8,358
8,094
264
3.3
Equipment
2,720
2,738
(18)
(0.7)
Legal, audit, and professional fees
2,562
2,195
367
16.7
FDIC deposit insurance costs
2,681
3,552
(871)
(24.5)
Advertising and promotion
2,021
1,890
131
6.9
Amortization of intangibles
466
607
(141)
(23.2)
Pension plan settlement charge
—
6,436
(6,436)
(100.0)
Other expenses
8,321
7,949
372
4.7
Total noninterest expense
115,159
114,452
707
0.6
Income before income taxes
60,691
46,745
13,946
29.8
Income tax expense
12,729
10,475
2,254
21.5
Net income
$47,962
$36,270
$11,692
32.2 %
Weighted avg common shares outstanding – basic
19,060
19,229
Weighted avg common shares outstanding – diluted
19,213
19,329
Per share information:
Basic earnings per common share
$2.52
$1.89
$0.63
33.3 %
Diluted earnings per common share
$2.50
$1.88
$0.62
33.0 %
Cash dividends declared
$1.68
$1.68
$—
— %
Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)
Sep 30,
2026
Jun 30,
2026
Sep 30,
2025
Sep 30, 2026 vs.
Jun 30, 2026
Sep 30, 2026 vs.
Sep 30, 2025
Share and Equity Related Data:
Book value per share
$27.82
$29.02
$27.98
($1.20)
(4.1 %)
($0.16)
(0.6 %)
Tangible book value per share (non-GAAP) (1)
$24.27
$25.46
$24.39
($1.19)
(4.7 %)
($0.12)
(0.5 %)
Market value per share
$37.99
$36.48
$28.90
$1.51
4.1 %
$9.09
31.5 %
Shares issued at end of period
19,562
19,562
19,562
— shs
— %
— shs
— %
Shares outstanding at end of period
19,081
19,071
19,050
10 shs
0.1 %
31 shs
0.2 %
Capital Ratios (2):
Tier 1 risk-based capital
12.38 %
12.36 %
12.11 %
2 bps
27 bps
Total risk-based capital
13.25 %
13.28 %
12.90 %
(3) bps
35 bps
Tier 1 leverage ratio
9.01 %
9.02 %
8.43 %
(1) bps
58 bps
Common equity tier 1
11.93 %
11.89 %
11.64 %
4 bps
29 bps
Balance Sheet Ratios:
Equity to assets
8.12 %
8.45 %
7.93 %
(33) bps
19 bps
Tangible equity to tangible assets (non-GAAP) (1)
7.16 %
7.49 %
6.99 %
(33) bps
17 bps
Loans to deposits (3)
94.8 %
95.1 %
98.0 %
(30) bps
(320) bps
Q3 2026
For the Nine Months Ended
YTD 2026
Q3 2026
Q2 2026
Q3 2025
vs.
Q2 2026
(bps)
vs.
Q3 2025
(bps)
Sep 30,
2026
Sep 30,
2025
vs.
2025
(bps)
Performance Ratios (4):
Net interest margin (5)
2.84 %
2.73 %
2.40 %
11
44
2.73 %
2.35 %
38
Return on average assets (6)
1.17 %
0.99 %
0.64 %
18
53
0.98 %
0.72 %
26
Adjusted return on average assets (non-GAAP) (1)
1.17 %
0.99 %
0.64 %
18
53
0.98 %
0.71 %
27
Return on average tangible assets (non-GAAP) (1)
1.18 %
1.00 %
0.65 %
18
53
0.99 %
0.72 %
27
Return on average equity (7)
13.89 %
11.61 %
8.14 %
228
575
11.60 %
9.29 %
231
Adjusted return on average equity (non-GAAP) (1)
13.89 %
11.61 %
8.14 %
228
575
11.60 %
9.19 %
241
Return on average tangible equity (non-GAAP) (1)
15.84 %
13.24 %
9.34 %
260
650
13.22 %
10.54 %
268
Efficiency ratio (8)
59.7 %
63.8 %
63.3 %
(410)
(360)
62.8 %
67.4 %
(460)
Adjusted efficiency ratio (non-GAAP) (1)
59.7 %
63.8 %
63.3 %
(410)
(360)
62.8 %
66.3 %
(350)
(1)
See the section labeled “Supplemental Information – Calculation of Non-GAAP Financial Measures” at the end of this document.
(2)
Estimated for Sep 30, 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 Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars in thousands)
Q3 2026 vs. Q2 2026
Q3 2026 vs. Q3 2025
Q3 2026
Q2 2026
Q3 2025
$
%
$
%
Wealth Management Results
Wealth Management Revenues:
Asset-based revenues
$11,030
$10,869
$10,307
$161
1.5 %
$723
7.0 %
Transaction-based revenues
59
332
66
(273)
(82.2)
(7)
(10.6)
Total wealth management revenues
$11,089
$11,201
$10,373
($112)
(1.0 %)
$716
6.9 %
Assets Under Administration (AUA):
Market value at the end of the period (1)
$7,917,811
$7,916,933
$7,682,440
$878
— %
$235,371
3.1 %
Percentage of AUA that are managed assets
91 %
91 %
91 %
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (2)
$2,788
$2,733
$2,450
$55
2.0 %
$338
13.8 %
Changes in fair value, net (3)
(188)
226
530
(414)
(183.2)
(718)
(135.5)
Loan servicing fee income, net (4)
555
514
521
41
8.0
34
6.5
Total mortgage banking revenues
$3,155
$3,473
$3,501
($318)
(9.2 %)
($346)
(9.9 %)
Residential Mortgage Loan Originations:
Originations for retention in portfolio (5)
$49,169
$78,934
$50,852
($29,765)
(37.7 %)
($1,683)
(3.3 %)
Originations for sale to secondary market (6)
143,712
137,134
122,300
6,578
4.8
21,412
17.5
Total mortgage loan originations
$192,881
$216,068
$173,152
($23,187)
(10.7 %)
$19,729
11.4 %
Percentage of originations for sale to total mortgage loan originations
75 %
63 %
71 %
Residential Mortgage Loans Sold:
Sold with servicing rights retained
$8,832
$7,586
$9,774
$1,246
16.4 %
($942)
(9.6 %)
Sold with servicing rights released (6)
136,051
128,535
116,713
7,516
5.8
19,338
16.6
Total mortgage loans sold
$144,883
$136,121
$126,487
$8,762
6.4 %
$18,396
14.5 %
(1)
Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025.
(2)
Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.
(3)
Represents fair value changes on mortgage loans held for sale and forward loan commitments.
(4)
Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.
(5)
Includes the full commitment amount of homeowner construction loans.
(6)
Includes brokered loans (loans originated for others).
Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars in thousands)
Change
For the Nine Months Ended Sep 30,
2026
2025
$
%
Wealth Management Results
Wealth Management Revenues:
Asset-based revenues
$32,479
$29,821
$2,658
8.9 %
Transaction-based revenues
458
563
(105)
(18.7)
Total wealth management revenues
$32,937
$30,384
$2,553
8.4 %
Assets Under Administration (AUA):
Market value at the end of the period (1)
$7,917,811
$7,682,440
$235,371
3.1 %
Percentage of AUA that are managed assets
91 %
91 %
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (2)
$7,891
$6,485
$1,406
21.7 %
Changes in fair value, net (3)
202
682
(480)
(70.4)
Loan servicing fee income, net (4)
1,580
1,672
(92)
(5.5)
Total mortgage banking revenues
$9,673
$8,839
$834
9.4 %
Residential Mortgage Loan Originations:
Originations for retention in portfolio (5)
$164,916
$129,845
$35,071
27.0 %
Originations for sale to secondary market (6)
399,197
328,031
71,166
21.7
Total mortgage loan originations
$564,113
$457,876
$106,237
23.2 %
Percentage of originations for sale to total mortgage loan originations
71 %
72 %
Residential Mortgage Loans Sold:
Sold with servicing rights retained
$21,088
$34,355
($13,267)
(38.6 %)
Sold with servicing rights released (6)
381,439
284,406
97,033
34.1
Total mortgage loans sold
$402,527
$318,761
$83,766
26.3 %
(1)
Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025.
(2)
Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.
(3)
Represents fair value changes on mortgage loans held for sale and forward loan commitments.
(4)
Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.
(5)
Includes the full commitment amount of homeowner construction loans.
(6)
Includes brokered loans (loans originated for others).
Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN COMPOSITION
(Unaudited; Dollars in thousands)
Sep 30, 2026 vs.
Jun 30, 2026
Sep 30, 2026 vs.
Sep 30, 2025
Sep 30,
2026
Jun 30,
2026
Sep 30,
2025
$
%
$
%
Loans:
Commercial real estate (1)
$2,116,435
$2,050,249
$2,156,750
$66,186
3.2 %
($40,315)
(1.9 %)
Commercial & industrial
661,617
665,855
568,317
(4,238)
(0.6)
93,300
16.4
Total commercial
2,778,052
2,716,104
2,725,067
61,948
2.3
52,985
1.9
Residential real estate (2)
2,030,656
2,042,406
2,073,740
(11,750)
(0.6)
(43,084)
(2.1)
Home equity
340,253
328,802
307,371
11,451
3.5
32,882
10.7
Other
15,891
15,757
16,404
134
0.9
(513)
(3.1)
Total consumer
356,144
344,559
323,775
11,585
3.4
32,369
10.0
Total loans
$5,164,852
$5,103,069
$5,122,582
$61,783
1.2 %
$42,270
0.8 %
(1)
Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.
(2)
Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties.
Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN COMPOSITION
(Unaudited; Dollars in thousands)
Sep 30, 2026
Dec 31, 2025
Balance Change
Balance
% of Total
Balance
% of Total
$
%
Commercial Real Estate Portfolio Segmentation:
Multi-family
$687,386
32 %
$667,388
31 %
$19,998
3.0 %
Retail
409,346
19
436,961
20
(27,615)
(6.3)
Industrial and warehouse
373,870
18
380,403
17
(6,533)
(1.7)
Hospitality
240,264
11
230,549
11
9,715
4.2
Office
208,059
10
237,706
11
(29,647)
(12.5)
Healthcare facility
115,342
5
156,871
7
(41,529)
(26.5)
Mixed-use
28,453
1
26,440
1
2,013
7.6
Other
53,715
4
47,667
2
6,048
12.7
Total commercial real estate loans
$2,116,435
100 %
$2,183,985
100 %
($67,550)
(3.1 %)
Commercial & Industrial Portfolio Segmentation:
Healthcare and social assistance
$148,495
22 %
$150,061
27 %
($1,566)
(1.0 %)
Educational services
144,744
22
54,245
10
90,499
166.8
Retail trade
66,816
10
48,289
9
18,527
38.4
Transportation and warehousing
54,137
8
55,315
10
(1,178)
(2.1)
Accommodation and food services
31,812
5
26,431
5
5,381
20.4
Finance and insurance
27,697
4
22,727
4
4,970
21.9
Manufacturing
26,379
4
23,714
4
2,665
11.2
Arts, entertainment, and recreation
23,705
4
22,043
4
1,662
7.5
Professional, scientific, and technical services
21,100
3
12,490
2
8,610
68.9
Information
21,090
3
21,843
4
(753)
(3.4)
Real estate rental and leasing
20,363
3
57,113
10
(36,750)
(64.3)
Public administration
5,929
1
1,448
—
4,481
309.5
Other
69,350
11
68,363
11
987
1.4
Total commercial & industrial loans
$661,617
100 %
$564,082
100 %
$97,535
17.3 %
Weighted Average
Asset Quality
Supplemental
– Nonaccrual
(included in
Classified)
Balance
(2) (3)
Average
Loan
Size (4)
Loan to
Value
Debt
Service
Coverage
Pass
Special
Mention
Classified
Non-Owner Occupied Commercial Real
Estate Office (inclusive of Construction):
Class A
$67,350
$9,811
54 %
1.71x
$61,319
$—
$6,031
$6,031
Class B
69,893
3,679
54 %
1.35x
66,166
3,727
—
—
Class C
10,250
1,464
56 %
1.35x
10,250
—
—
—
Medical Office
25,556
6,389
54 %
1.68x
25,556
—
—
—
Lab Space
35,010
18,288
103 %
—x
—
28,436
6,574
6,574
Total office at Sep 30, 2026 (1)
$208,059
$5,409
63 %
1.27x
$163,291
$32,163
$12,605
$12,605
Total office at Jun 30, 2026
$212,074
$5,500
64 %
1.30x
$145,402
$31,654
$35,018
$28,923
Sep 30, 2026 vs. Jun 30, 2026
($4,015)
($91)
(1 %)
(0.03x)
$17,889
$509
($22,413)
($16,318)
(1)
Approximately 61% of the total commercial real estate office balance of $208 million is secured by income producing properties located in suburban areas. Additionally, approximately 61% of the total commercial real estate office balance is scheduled to mature before Sep 30, 2028.
(2)
Balance of commercial real estate office consists of 39 loans as of Sep 30, 2026.
(3)
Does not include $2.9 million of unfunded commitments as of Sep 30, 2026.
(4)
Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans.
Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY
(Unaudited; Dollars in thousands)
Sep 30, 2026 vs.
Jun 30, 2026
Sep 30, 2026 vs.
Sep 30, 2025
Sep 30,
2026
Jun 30,
2026
Sep 30,
2025
$
%
$
%
Deposits:
Noninterest-bearing demand deposits
$690,665
$644,011
$671,309
$46,654
7.2 %
$19,356
2.9 %
Interest-bearing demand deposits (in-market)
720,603
745,273
703,848
(24,670)
(3.3)
16,755
2.4
NOW accounts
703,672
701,615
684,689
2,057
0.3
18,983
2.8
Money market accounts
1,300,322
1,270,616
1,195,463
29,706
2.3
104,859
8.8
Savings accounts
877,455
863,856
733,529
13,599
1.6
143,926
19.6
Time deposits (in-market)
1,143,299
1,133,502
1,233,998
9,797
0.9
(90,699)
(7.4)
In-market deposits
5,436,016
5,358,873
5,222,836
77,143
1.4
213,180
4.1
Wholesale brokered time deposits
—
—
—
—
—
—
—
Total deposits
$5,436,016
$5,358,873
$5,222,836
$77,143
1.4 %
$213,180
4.1 %
Sep 30,
2026
Dec 31,
2025
Sep 30, 2026 vs.
Dec 31, 2025
Contingent Liquidity:
Federal Home Loan Bank of Boston
$1,498,918
$1,356,005
$142,913
10.5 %
Federal Reserve Bank of Boston
111,760
104,379
7,381
7.1
Available cash liquidity (1)
21,716
17,460
4,256
24.4
Unencumbered securities
453,811
539,830
(86,019)
(15.9)
Total
$2,086,205
$2,017,674
$68,531
3.4 %
(1)
Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs.
Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
Sep 30, 2026 vs.
Sep 30,
2026
Jun 30,
2026
Sep 30,
2025
Jun 30,
2026
(bps)
Sep 30,
2025
(bps)
Asset Quality Ratios:
Nonperforming assets to total assets
0.38 %
0.61 %
0.21 %
(23)
17
Nonaccrual loans to total loans
0.48 %
0.78 %
0.27 %
(30)
21
Total past due loans to total loans
0.54 %
0.81 %
0.16 %
(27)
38
ACL on loans to nonaccrual loans
165.01 %
106.92 %
260.96 %
5,809
(9,595)
ACL on loans to total loans
0.78 %
0.83 %
0.71 %
(5)
7
Sep 30, 2026 vs.
Jun 30, 2026
Sep 30, 2026 vs.
Sep 30, 2025
Sep 30,
2026
Jun 30,
2026
Sep 30,
2025
$
%
$
%
Nonperforming Assets:
Commercial real estate
$12,605
$28,923
$—
($16,318)
(56.4 %)
$12,605
100 %
Commercial & industrial
489
126
1,010
363
288.1
(521)
(51.6)
Total commercial
13,094
29,049
1,010
(15,955)
(54.9)
12,084
1,196.4
Residential real estate
9,689
9,072
11,129
617
6.8
(1,440)
(12.9)
Home equity
1,753
1,695
1,877
58
3.4
(124)
(6.6)
Other consumer
—
—
—
—
—
—
—
Total consumer
1,753
1,695
1,877
58
3.4
(124)
(6.6)
Total nonaccrual loans
24,536
39,816
14,016
(15,280)
(38.4)
10,520
75.1
Other real estate owned
—
—
—
—
—
—
—
Total nonperforming assets
$24,536
$39,816
$14,016
($15,280)
(38.4 %)
$10,520
75.1 %
Past Due Loans (30 days or more past due):
Commercial real estate
$14,688
$28,923
$—
($14,235)
(49.2 %)
$14,688
100.0 %
Commercial & industrial
493
464
8
29
6.3
485
6,062.5
Total commercial
15,181
29,387
8
(14,206)
(48.3)
15,173
189,662.5
Residential real estate
10,655
9,908
6,470
747
7.5
4,185
64.7
Home equity
2,002
2,086
1,583
(84)
(4.0)
419
26.5
Other consumer
46
27
51
19
70.4
(5)
(9.8)
Total consumer
2,048
2,113
1,634
(65)
(3.1)
414
25.3
Total past due loans
$27,884
$41,408
$8,112
($13,524)
(32.7 %)
$19,772
243.7 %
Accruing loans 90 days or more past due
$—
$—
$—
$—
— %
$—
— %
Nonaccrual loans included in past due loans
$14,965
$36,152
$5,925
($21,187)
(58.6 %)
$9,040
152.6 %
Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
For the Three Months Ended
Sep 30,
2026
Jun 30,
2026
Sep 30,
2025
Nonaccrual Loan Activity:
Balance at beginning of period
$39,816
$40,440
$26,108
Additions to nonaccrual status
7,832
2,457
1,068
Loans returned to accruing status
(18,720)
(2,318)
—
Loans charged-off
(3,910)
(78)
(11,459)
Loans transferred to other real estate owned
—
—
—
Payments, payoffs, and other changes
(482)
(685)
(1,701)
Balance at end of period
$24,536
$39,816
$14,016
Allowance for Credit Losses on Loans:
Balance at beginning of period
$42,571
$41,126
$41,059
Provision for credit losses on loans (1)
1,800
1,500
6,950
Charge-offs
(3,910)
(78)
(11,459)
Recoveries
27
23
26
Balance at end of period
$40,488
$42,571
$36,576
Allowance for Credit Losses on Unfunded Commitments:
Balance at beginning of period
$1,340
$1,240
$1,190
Provision for credit losses on unfunded commitments (1)
—
100
(150)
Balance at end of period (2)
$1,340
$1,340
$1,040
(1)
Included in provision for credit losses in the Consolidated Statements of Income.
(2)
Included in other liabilities in the Consolidated Balance Sheets.
Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
Q3 2026 vs. Q2 2026
Q3 2026 vs. Q3 2025
Q3 2026
Q2 2026
Q3 2025
$
%
$
%
Provision for Credit Losses:
Provision for credit losses on loans
$1,800
$1,500
$6,950
$300
20.0 %
($5,150)
(74.1 %)
Provision for credit losses on unfunded commitments
—
100
(150)
(100)
(100.0)
150
100.0
Provision for credit losses
$1,800
$1,600
$6,800
$200
12.5 %
($5,000)
(73.5 %)
Net Loan Charge-Offs (Recoveries):
Commercial real estate
$3,830
$—
$2,991
$3,830
100.0 %
$839
28.1 %
Commercial & industrial
(3)
—
8,355
(3)
—
(8,358)
(100.0)
Total commercial
3,827
—
11,346
3,827
100.0
(7,519)
(66.3)
Residential real estate
—
—
—
—
—
—
—
Home equity
—
—
(15)
—
—
15
100.0
Other consumer
56
55
102
1
1.8
(46)
(45.1)
Total consumer
56
55
87
1
1.8
(31)
(35.6)
Total
$3,883
$55
$11,433
$3,828
6,960.0 %
($7,550)
(66.0 %)
Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
The following tables present daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate. 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 Ended
Sep 30, 2026
Jun 30, 2026
Change
Average
Balance
Interest
Yield/
Rate
Average
Balance
Interest
Yield/
Rate
Average
Balance
Interest
Yield/
Rate
Assets:
Cash, federal funds sold, and short-term
investments
$120,836
$1,100
3.61 %
$111,434
$998
3.59 %
$9,402
$102
0.02 %
Mortgage loans held for sale
33,802
557
6.54
31,413
478
6.10
2,389
79
0.44
Taxable debt securities
972,482
8,250
3.37
996,894
8,468
3.41
(24,412)
(218)
(0.04)
Nontaxable debt securities
650
8
4.88
650
8
4.94
—
—
(0.06)
Total securities
973,132
8,258
3.37
997,544
8,476
3.41
(24,412)
(218)
(0.04)
FHLB stock
21,215
425
7.95
25,557
506
7.94
(4,342)
(81)
0.01
Commercial real estate
2,077,821
30,246
5.78
2,049,760
28,593
5.60
28,061
1,653
0.18
Commercial & industrial
664,500
9,591
5.73
592,347
8,346
5.65
72,153
1,245
0.08
Total commercial
2,742,321
39,837
5.76
2,642,107
36,939
5.61
100,214
2,898
0.15
Residential real estate
2,038,069
22,990
4.48
2,027,688
22,698
4.49
10,381
292
(0.01)
Home equity
332,723
5,255
6.27
322,709
5,052
6.28
10,014
203
(0.01)
Other
15,617
215
5.46
15,760
208
5.29
(143)
7
0.17
Total consumer
348,340
5,470
6.23
338,469
5,260
6.23
9,871
210
—
Total loans
5,128,730
68,297
5.28
5,008,264
64,897
5.20
120,466
3,400
0.08
Total interest-earning assets
6,277,715
78,637
4.97
6,174,212
75,355
4.90
103,503
3,282
0.07
Noninterest-earning assets
288,205
289,814
(1,609)
Total assets
$6,565,920
$6,464,026
$101,894
Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits (in-
market)
$743,369
$5,815
3.10 %
$730,215
$5,751
3.16 %
$13,154
$64
(0.06 %)
NOW accounts
687,920
292
0.17
685,098
265
0.16
2,822
27
0.01
Money market accounts
1,310,077
9,512
2.88
1,196,679
8,429
2.83
113,398
1,083
0.05
Savings accounts
868,065
3,920
1.79
833,804
3,656
1.76
34,261
264
0.03
Time deposits (in-market)
1,136,661
9,470
3.31
1,143,511
9,466
3.32
(6,850)
4
(0.01)
Interest-bearing in-market deposits
4,746,092
29,009
2.42
4,589,307
27,567
2.41
156,785
1,442
0.01
Wholesale brokered time deposits
—
—
—
—
—
—
—
—
—
Total interest-bearing deposits
4,746,092
29,009
2.42
4,589,307
27,567
2.41
156,785
1,442
0.01
FHLB advances
431,924
4,392
4.03
536,879
5,491
4.10
(104,955)
(1,099)
(0.07)
Junior subordinated debentures
22,681
312
5.46
22,681
308
5.45
—
4
0.01
Total interest-bearing liabilities
5,200,697
33,713
2.57
5,148,867
33,366
2.60
51,830
347
(0.03)
Noninterest-bearing demand deposits
664,713
621,882
42,831
Other liabilities
147,120
141,165
5,955
Shareholders’ equity
553,390
552,112
1,278
Total liabilities and shareholders’ equity
$6,565,920
$6,464,026
$101,894
Net interest income (FTE)
$44,924
$41,989
$2,935
Interest rate spread
2.40 %
2.30 %
0.10 %
Net interest margin
2.84 %
2.73 %
0.11 %
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Three Months Ended
Sep 30, 2026
Jun 30, 2026
Change
Commercial loans
$222
$180
$42
Nontaxable debt securities
1
—
1
Total
$223
$180
$43
Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
For the Nine Months Ended
Sep 30, 2026
Sep 30, 2025
Change
Average
Balance
Interest
Yield/
Rate
Average
Balance
Interest
Yield/
Rate
Average
Balance
Interest
Yield/
Rate
Assets:
Cash, federal funds sold and short-term
investments
$111,192
$3,007
3.62 %
$138,301
$4,497
4.35 %
($27,109)
($1,490)
(0.73 %)
Mortgage loans for sale
30,025
1,410
6.28
54,624
1,942
4.75
(24,599)
(532)
1.53
Taxable debt securities
997,146
25,486
3.42
1,061,852
27,429
3.45
(64,706)
(1,943)
(0.03)
Nontaxable debt securities
650
25
5.14
650
24
4.94
—
1
0.20
Total securities
997,796
25,511
3.42
1,062,502
27,453
3.45
(64,706)
(1,942)
(0.03)
FHLB stock
25,745
1,516
7.87
42,504
2,578
8.11
(16,759)
(1,062)
(0.24)
Commercial real estate
2,091,865
87,557
5.60
2,167,400
93,873
5.79
(75,535)
(6,316)
(0.19)
Commercial & industrial
609,788
25,858
5.67
547,558
24,044
5.87
62,230
1,814
(0.20)
Total commercial
2,701,653
113,415
5.61
2,714,958
117,917
5.81
(13,305)
(4,502)
(0.20)
Residential real estate
2,033,794
68,411
4.50
2,101,567
69,382
4.41
(67,773)
(971)
0.09
Home equity
324,090
15,239
6.29
299,645
15,499
6.92
24,445
(260)
(0.63)
Other
15,985
637
5.33
16,876
628
4.98
(891)
9
0.35
Total consumer
340,075
15,876
6.24
316,521
16,127
6.81
23,554
(251)
(0.57)
Total loans
5,075,522
197,702
5.21
5,133,046
203,426
5.30
(57,524)
(5,724)
(0.09)
Total interest-earning assets
6,240,280
229,146
4.91
6,430,977
239,896
4.99
(190,697)
(10,750)
(0.08)
Noninterest-earning assets
291,928
284,668
7,260
Total assets
$6,532,208
$6,715,645
($183,437)
Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits (in-
market)
$740,588
$17,455
3.15 %
$659,609
$18,630
3.78 %
$80,979
($1,175)
(0.63 %)
NOW accounts
683,129
817
0.16
673,135
1,075
0.21
9,994
(258)
(0.05)
Money market accounts
1,223,662
25,729
2.81
1,196,124
29,426
3.29
27,538
(3,697)
(0.48)
Savings accounts
837,515
10,993
1.75
649,841
8,555
1.76
187,674
2,438
(0.01)
Time deposits (in-market)
1,156,665
28,952
3.35
1,209,618
33,692
3.72
(52,953)
(4,740)
(0.37)
Interest-bearing in-market deposits
4,641,559
83,946
2.42
4,388,327
91,378
2.78
253,232
(7,432)
(0.36)
Wholesale brokered time deposits
—
—
—
65,115
2,457
5.04
(65,115)
(2,457)
(5.04)
Total interest-bearing deposits
4,641,559
83,946
2.42
4,453,442
93,835
2.82
188,117
(9,889)
(0.40)
FHLB advances
542,319
16,660
4.11
945,484
31,939
4.52
(403,165)
(15,279)
(0.41)
Junior subordinated debentures
22,681
930
5.48
22,681
1,040
6.13
—
(110)
(0.65)
Total interest-bearing liabilities
5,206,559
101,536
2.61
5,421,607
126,814
3.13
(215,048)
(25,278)
(0.52)
Noninterest-bearing demand deposits
630,520
628,448
2,072
Other liabilities
142,170
143,843
(1,673)
Shareholders’ equity
552,959
521,747
31,212
Total liabilities and shareholders’ equity
$6,532,208
$6,715,645
($183,437)
Net interest income (FTE)
$127,610
$113,082
$14,528
Interest rate spread
2.30 %
1.86 %
0.44 %
Net interest margin
2.73 %
2.35 %
0.38 %
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Nine Months Ended
Sep 30, 2026
Sep 30, 2025
Change
Commercial loans
$570
$644
($74)
Nontaxable debt securities
3
2
1
Total
$573
$646
($73)
Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION – Calculation of Non-GAAP Financial Measures
(Unaudited; Dollars in thousands, except per share amounts)
The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted net income, adjusted diluted earnings per common share, and adjusted efficiency ratio:
For the Nine Months Ended Sep 30,
2026
2025
Change
Adjusted Noninterest Income:
Noninterest income, as reported
$56,230
$57,357
($1,127)
(2.0 %)
Less adjustments:
Gain on sale of bank-owned properties, net
—
6,994
(6,994)
(100.0)
Adjusted noninterest income (non-GAAP)
$56,230
$50,363
$5,867
11.6 %
Adjusted Noninterest Expense:
Noninterest expense, as reported
$115,159
$114,452
$707
0.6 %
Less adjustments:
Pension plan settlement charge
—
6,436
(6,436)
(100.0)
Adjusted noninterest expense (non-GAAP)
$115,159
$108,016
$7,143
6.6 %
Adjusted Income Before Income Taxes:
Income before income taxes
$60,691
$46,745
$13,946
29.8 %
Less: total adjustments, pre-tax
—
558
(558)
(100.0)
Adjusted income before income taxes (non-GAAP)
$60,691
$46,187
$14,504
31.4 %
Adjusted Income Tax Expense:
Income tax expense, as reported
$12,729
$10,475
$2,254
21.5 %
Less: tax on total adjustments
—
141
(141)
(100.0)
Adjusted income tax expense (non-GAAP)
$12,729
$10,334
$2,395
23.2 %
Adjusted Net Income:
Net income, as reported
$47,962
$36,270
$11,692
32.2 %
Less: total adjustments, after-tax
—
417
(417)
(100.0)
Adjusted net income (non-GAAP)
$47,962
$35,853
$12,109
33.8 %
Adjusted Diluted Earnings per Common Share:
Diluted earnings (loss) per common share, as reported (1)
$2.50
$1.88
$0.62
33.0 %
Less: impact of total adjustments
—
0.03
(0.03)
(100.0)
Adjusted diluted earnings per common share (non-GAAP) (2)
$2.50
$1.85
$0.65
35.1 %
Adjusted Efficiency Ratio:
Efficiency ratio, as reported (3)
62.8 %
67.4 %
(460) bps
Less: impact of total adjustments
—
1.1
(110) bps
Adjusted efficiency ratio (non-GAAP) (4)
62.8 %
66.3 %
(350) 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.
Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION – Calculation of Non-GAAP Financial Measures (continued)
(Unaudited; Dollars in thousands)
The following tables present return on average tangible assets and adjusted return on average assets:
Q3 2026
Q2 2026
Q3 2025
Q3 2026 vs. Q2 2026
Q3 2026 vs. Q3 2025
Return on Average Tangible Assets:
Net income, as reported
$19,381
$15,981
$10,846
$3,400
21.3 %
$8,535
78.7 %
Total average assets, as reported
$6,565,920
$6,464,026
$6,738,796
$101,894
1.6 %
($172,876)
(2.6 %)
Less average balances of:
Goodwill
63,909
63,909
63,909
—
—
—
—
Identifiable intangible assets, net
3,913
4,068
3,821
(155)
(3.8)
92
2.4
Total average tangible assets
$6,498,098
$6,396,049
$6,671,066
$102,049
1.6 %
($172,968)
(2.6 %)
Return on average assets (1)
1.17 %
0.99 %
0.64 %
18 bps
53 bps
Return on average tangible assets (non-GAAP) (2)
1.18 %
1.00 %
0.65 %
18 bps
53 bps
For the Nine Months Ended Sep 30,
2026
2025
Change
Adjusted Return on Average Assets:
Net income, as reported
$47,962
$36,270
$11,692
32.2 %
Less: total adjustments, after-tax
—
417
(417)
(100.0)
Adjusted net income (non-GAAP)
$47,962
$35,853
$12,109
33.8 %
Total average assets, as reported
$6,532,208
$6,715,645
($183,437)
(2.7 %)
Return on average assets (1)
0.98 %
0.72 %
26 bps
Adjusted return on average assets (non-GAAP) (3)
0.98 %
0.71 %
27 bps
Return on Average Tangible Assets:
Adjusted net income (non-GAAP)
$47,962
$35,853
$12,109
33.8 %
Total average assets, as reported
$6,532,208
$6,715,645
($183,437)
(2.7 %)
Less average balances of:
Goodwill
63,909
63,909
—
—
Identifiable intangible assets, net
4,067
3,064
1,003
32.7
Total average tangible assets
$6,464,232
$6,648,672
($184,440)
(2.8 %)
Return on average assets (1)
0.98 %
0.72 %
26 bps
Return on average tangible assets (non-GAAP) (4)
0.99 %
0.72 %
27 bps
(1)
Net income divided by total average assets.
(2)
Net income divided by total average tangible assets.
(3)
Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets.
(4)
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 Subsidiaries
SUPPLEMENTAL INFORMATION – Calculation of Non-GAAP Financial Measures (continued)
(Unaudited; Dollars in thousands)
The following tables present return on average tangible equity and adjusted return on average equity:
Q3 2026
Q2 2026
Q3 2025
Q3 2026 vs. Q2 2026
Q3 2026 vs. Q3 2025
Return on Average Tangible Equity:
Net income, as reported
$19,381
$15,981
$10,846
$3,400
21.3 %
$8,535
78.7 %
Total average equity, as reported
$553,390
$552,112
$528,315
$1,278
0.2 %
$25,075
4.7 %
Less average balances of:
Goodwill
63,909
63,909
63,909
—
—
—
—
Identifiable intangible assets, net
3,913
4,068
3,821
(155)
(3.8)
92
2.4
Total average tangible equity (non-GAAP)
$485,568
$484,135
$460,585
$1,433
0.3 %
$24,983
5.4 %
Return on average equity (1)
13.89 %
11.61 %
8.14 %
228 bps
575 bps
Return on average tangible equity
(non-GAAP) (2)
15.84 %
13.24 %
9.34 %
260 bps
650 bps
For the Nine Months Ended Sep 30,
2026
2025
Change
Adjusted Return on Average Equity:
Net income, as reported
$47,962
$36,270
$11,692
32.2 %
Less: total adjustments, after-tax
—
417
(417)
(100.0)
Adjusted net income (non-GAAP)
$47,962
$35,853
$12,109
33.8
Total average equity, as reported
$552,959
$521,747
$31,212
6.0
Return on average equity (1)
11.60 %
9.29 %
231 bps
Adjusted return on average equity (non-GAAP) (3)
11.60 %
9.19 %
241 bps
Return on Average Tangible Equity:
Adjusted net income (non-GAAP)
$47,962
$35,853
$12,109
33.8 %
Total average equity, as reported
$552,959
$521,747
$31,212
6.0
Less average balances of:
Goodwill
63,909
63,909
—
—
Identifiable intangible assets, net
4,067
3,064
1,003
32.7
Total average tangible equity (non-GAAP)
$484,983
$454,774
$30,209
6.6
Return on average equity (1)
11.60 %
9.29 %
231 bps
Return on average tangible equity (non-GAAP) (4)
13.22 %
10.54 %
268 bps
(1)
Net income divided by total average equity.
(2)
Net income divided by total average tangible equity.
(3)
Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.
(4)
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 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:
Sep 30,
2026
Jun 30,
2026
Sep 30,
2025
Sep 30, 2026 vs.
Jun 30, 2026
Sep 30, 2026 vs.
Sep 30, 2025
Tangible Book Value per Share:
Total shareholders’ equity, as reported
$530,767
$553,523
$533,021
($22,756)
(4.1 %)
($2,254)
(0.4 %)
Less end of period balances of:
Goodwill
63,909
63,909
63,909
—
— %
—
— %
Identifiable intangible assets, net
3,837
3,992
4,458
(155)
(3.9 %)
(621)
(13.9 %)
Total tangible shareholders’ equity (non-GAAP)
$463,021
$485,622
$464,654
($22,601)
(4.7 %)
($1,633)
(0.4 %)
Shares outstanding, as reported
19,081
19,071
19,050
10
0.1 %
31
0.2 %
Book value per share
$27.82
$29.02
$27.98
($1.20)
(4.1 %)
($0.16)
(0.6 %)
Tangible book value per share (non-GAAP)
$24.27
$25.46
$24.39
($1.19)
(4.7 %)
($0.12)
(0.5 %)
Tangible Equity to Tangible Assets:
Total tangible shareholders’ equity
$463,021
$485,622
$464,654
($22,601)
(4.7 %)
($1,633)
(0.4 %)
Total assets, as reported
$6,538,491
$6,547,904
$6,717,921
($9,413)
(0.1 %)
($179,430)
(2.7 %)
Less end of period balances of:
Goodwill
63,909
63,909
63,909
—
— %
—
— %
Identifiable intangible assets, net
3,837
3,992
4,458
(155)
(3.9 %)
(621)
(13.9 %)
Total tangible assets (non-GAAP)
$6,470,745
$6,480,003
$6,649,554
($9,258)
(0.1 %)
($178,809)
(2.7 %)
Equity to assets
8.12 %
8.45 %
7.93 %
(33) bps
19 bps
Tangible equity to tangible assets (non-GAAP)
7.16 %
7.49 %
6.99 %
(33) bps
17 bps
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.