SOURCE Washington Trust Bancorp, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers , /PRNewswire/ -- Washington Trust Bancorp, Inc. (NASDAQ: WASH), the publicly owned holding company of The Washington Trust Company, will release third quarter 2025 earnings and host a conference call with the Corporation's executives, as follows: | Earnings Release: | Monday, October 20, 2025, After Market Closes | | --- | --- | | Conference Call: | Tuesday, October 21, 2025, 8:30 a.m ...

Investors might want to bet on Washington Trust Bancorp (WASH) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the sy ...

Clark supports developing future technology leaders and volunteers his time mentoring students through Computer Science for Rhode Island (CS4RI), a program that helps to build the next generation of tech talent in the region. Accessibility StatementSkip Navigation WESTERLY, R.I., Sept. 9, 2025 /PRNewswire/ -- Washington Trust is proud to announce that Senior Vice President and Chief Technology Officer Daryl Clark has been named to the Forbes Technology Council's "Top 500 CTOs to Watch in America" list. Thi ...

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) [Registrant Information](index=1&type=section&id=Registrant%20Information) This section details Washington Trust Bancorp, Inc.'s SEC filing status, trading symbol, and common stock outstanding as of July 31, 2025 - Registrant is an accelerated filer and not a shell company[3](index=3&type=chunk)[5](index=5&type=chunk) Registrant Information | Metric | Value | | :--- | :--- | | Trading Symbol | WASH | | Exchange | Nasdaq Global Select Market | | Common Stock Outstanding (July 31, 2025) | 19,155,214 shares | [Glossary of Acronyms and Terms](index=3&type=section&id=Glossary%20of%20Acronyms%20and%20Terms) This section provides definitions for key acronyms and terms used throughout the Quarterly Report on Form 10-Q to ensure clarity and consistent understanding of the financial and operational discussions [PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated financial statements for Washington Trust Bancorp, Inc. and its subsidiaries, including balance sheets, income statements, comprehensive income statements, statements of changes in shareholders' equity, and cash flow statements, along with condensed notes providing further details on accounting policies, financial instruments, and key accounts [Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](index=4&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) This section provides a snapshot of the Corporation's financial position, detailing assets, liabilities, and shareholders' equity at specific reporting dates Consolidated Balance Sheet Highlights (Dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $6,745,167 | $6,930,647 | ($185,480) | (2.68%) | | Total Loans, Net | $5,099,201 | $5,095,878 | $3,323 | 0.07% | | Available for Sale Debt Securities | $971,341 | $916,305 | $55,036 | 6.01% | | Total Deposits | $5,045,248 | $5,115,800 | ($70,552) | (1.38%) | | FHLB Advances | $1,001,000 | $1,125,000 | ($124,000) | (11.02%) | | Total Shareholders' Equity | $527,519 | $499,728 | $27,791 | 5.56% | [Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section details the Corporation's revenues, expenses, and net income for the three and six months ended June 30, 2025 and 2024, reflecting operational profitability Consolidated Statements of Income Highlights (Dollars in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Interest and Dividend Income | $78,846 | $85,997 | ($7,151) | (8.32%) | | Total Interest Expense | $41,661 | $54,412 | ($12,751) | (23.43%) | | Net Interest Income | $37,185 | $31,585 | $5,600 | 17.73% | | Provision for Credit Losses | $600 | $500 | $100 | 20.00% | | Total Noninterest Income | $17,078 | $16,660 | $418 | 2.51% | | Total Noninterest Expense | $36,530 | $33,910 | $2,620 | 7.72% | | Net Income | $13,245 | $10,815 | $2,430 | 22.47% | | Basic EPS | $0.69 | $0.63 | $0.06 | 9.52% | | Diluted EPS | $0.68 | $0.63 | $0.05 | 7.94% | Consolidated Statements of Income Highlights (Dollars in thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Interest and Dividend Income | $158,309 | $171,253 | ($12,944) | (7.56%) | | Total Interest Expense | $84,702 | $108,003 | ($23,301) | (21.57%) | | Net Interest Income | $73,607 | $63,250 | $10,357 | 16.37% | | Provision for Credit Losses | $1,800 | $1,200 | $600 | 50.00% | | Total Noninterest Income | $39,721 | $33,823 | $5,898 | 17.44% | | Total Noninterest Expense | $78,726 | $68,273 | $10,453 | 15.31% | | Net Income | $25,424 | $21,751 | $3,673 | 16.89% | | Basic EPS | $1.32 | $1.28 | $0.04 | 3.13% | | Diluted EPS | $1.31 | $1.27 | $0.04 | 3.15% | [Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section presents the Corporation's comprehensive income, including net income and other comprehensive income (loss) components, for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Comprehensive Income Highlights (Dollars in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $13,245 | $10,815 | $2,430 | 22.47% | | Total Other Comprehensive Income (Loss), net of tax | $3,230 | $2,587 | $643 | 24.85% | | Total Comprehensive Income | $16,475 | $13,402 | $3,073 | 22.93% | Consolidated Statements of Comprehensive Income Highlights (Dollars in thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $25,424 | $21,751 | $3,673 | 16.89% | | Total Other Comprehensive Income (Loss), net of tax | $23,222 | ($5,173) | $28,395 | 548.89% | | Total Comprehensive Income | $48,646 | $16,578 | $32,068 | 193.44% | [Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2025 and 2024](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section outlines the changes in the Corporation's shareholders' equity, including net income, other comprehensive income, dividends, and share-based compensation, for the six months ended June 30, 2025 and 2024 Shareholders' Equity Changes (Dollars in thousands) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Balance at December 31 | $499,728 | $472,686 | | Net income | $25,424 | $21,751 | | Total other comprehensive income (loss), net of tax | $23,222 | ($5,173) | | Cash dividends declared | ($21,918) | ($19,318) | | Share-based compensation | $1,653 | $1,278 | | Treasury stock purchased | ($296) | $— | | Balance at June 30 | $527,519 | $470,957 | [Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section summarizes the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Consolidated Statements of Cash Flows Highlights (Six months ended June 30, Dollars in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $19,792 | $13,129 | | Net cash provided by investing activities | $250,966 | $35,797 | | Net cash used in financing activities | ($216,923) | ($31,579) | | Net increase in cash and cash equivalents | $53,835 | $17,347 | | Cash and cash equivalents at end of period | $167,724 | $107,531 | [Condensed Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed notes on accounting policies, financial instruments, and key accounts, offering further context to the unaudited consolidated financial statements - The Corporation's financial statements conform to GAAP and banking industry practices, with intercompany balances eliminated. Management considers the Allowance for Credit Losses (ACL) on loans a material estimate susceptible to change[27](index=27&type=chunk)[28](index=28&type=chunk)[30](index=30&type=chunk) - No material impact is expected from recently issued accounting pronouncements ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures)[31](index=31&type=chunk)[32](index=32&type=chunk) Available for Sale Debt Securities (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Amortized Cost | $1,084,845 | $1,049,557 | | Fair Value | $971,341 | $916,305 | | Total Unrealized Losses | ($114,250) | ($133,309) | | Pledged as Collateral | $366,400 | $310,500 | - Management does not intend to sell debt securities in an unrealized loss position and believes losses are due to interest rate changes, not credit quality, thus no ACL was recorded for securities[40](index=40&type=chunk) Loan Portfolio Composition (Dollars in thousands) | Loan Class | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial Real Estate | $2,178,925 | $2,154,504 | | Commercial & Industrial | $547,318 | $542,474 | | Residential Real Estate | $2,096,250 | $2,126,171 | | Home Equity | $300,917 | $297,119 | | Other Consumer | $16,850 | $17,570 | | Total Loans | $5,140,260 | $5,137,838 | Past Due Loans (Dollars in thousands) | Category | June 30, 2025 (Total Past Due) | December 31, 2024 (Total Past Due) | | :--- | :--- | :--- | | Commercial | $1,799 | $900 | | Residential Real Estate | $9,772 | $7,741 | | Consumer | $2,464 | $3,341 | | Total Past Due Loans | $14,035 | $11,982 | | Nonaccrual Loans (included in past due) | $8,200 | $6,400 | - Troubled Loan Modifications (TLMs) for the six months ended June 30, 2025, totaled **$5.7 million**, including a **$4.3 million** Commercial Real Estate loan with interest rate reduction, maturity extension, and payment delay, and a **$1.4 million** Residential Real Estate loan with payment delay[61](index=61&type=chunk) Allowance for Credit Losses on Loans (Dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Beginning Balance | $41,960 | $41,057 (Dec 31, 2023) | | Charge-offs (6 months) | ($3,189) | ($123) | | Recoveries (6 months) | $238 | $44 | | Provision (6 months) | $2,050 | $1,400 | | Ending Balance | $41,059 | $41,960 | - In Q1 2025, sales-leaseback transactions for five branch locations generated a **$7.0 million** pre-tax net gain and resulted in recording **$10.0 million** in operating lease ROU assets and liabilities[89](index=89&type=chunk) - The Corporation uses derivative financial instruments, including interest rate swaps and collars, to manage interest rate risk and accommodate customer needs. Derivatives are measured at fair value, with cash flow hedges impacting OCI and fair value hedges impacting earnings[93](index=93&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) Derivative Instruments Notional Amounts and Fair Values (Dollars in thousands) | Category | Notional (June 30, 2025) | Derivative Assets (June 30, 2025) | Derivative Liabilities (June 30, 2025) | | :--- | :--- | :--- | :--- | | Cash Flow Hedging Instruments | $220,000 | $279 | $1,074 | | Fair Value Hedging Instruments | $100,000 | $179 | $— | | Non-Hedging Instruments | $2,072,756 | $38,933 | $40,067 | | Total Net Derivatives | | $33,628 | $34,664 | - Mortgage loans held for sale under the fair value option increased mortgage banking revenues by **$292 thousand** (3 months) and **$517 thousand** (6 months) in 2025, compared to decreases in 2024[109](index=109&type=chunk) Deposit Summary (Dollars in thousands) | Deposit Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Noninterest-bearing demand deposits | $646,584 | $661,776 | | Interest-bearing demand deposits | $668,483 | $592,904 | | NOW accounts | $680,246 | $692,812 | | Money market accounts | $1,147,792 | $1,154,745 | | Savings accounts | $693,055 | $523,915 | | Time deposits | $1,209,088 | $1,489,648 | | Total Deposits | $5,045,248 | $5,115,800 | - FHLB advances decreased by **$124.0 million** to **$1.0 billion** at June 30, 2025, from **$1.125 billion** at December 31, 2024. The Bank had **$987.1 million** in available borrowing capacity with the FHLB at June 30, 2025[129](index=129&type=chunk)[130](index=130&type=chunk) - The Board adopted a 2025 Repurchase Program on May 15, 2025, authorizing the repurchase of up to **850,000 shares**. **10,000 shares** were repurchased in Q2 2025 at an average price of **$29.56**[133](index=133&type=chunk) Regulatory Capital Ratios (June 30, 2025) | Ratio | Corporation | Bank | | :--- | :--- | :--- | | Total Capital (to Risk-Weighted Assets) | 13.06% | 12.96% | | Tier 1 Capital (to Risk-Weighted Assets) | 12.17% | 12.07% | | Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 11.71% | 12.07% | | Tier 1 Capital (to Average Assets) (Leverage Ratio) | 8.66% | 8.58% | *All ratios exceed 'well capitalized' minimums.* - The Corporation's capital levels exceeded minimum regulatory requirements plus the **2.50%** capital conservation buffer at June 30, 2025[135](index=135&type=chunk) - A substantial portion of the Corporation's revenues are excluded from ASC 606 scope, with wealth management, card interchange fees, and service charges on deposit accounts being key revenue streams within ASC 606[139](index=139&type=chunk)[140](index=140&type=chunk)[142](index=142&type=chunk) - In Q1 2025, the qualified pension plan liability was settled, resulting in a **$6.4 million** pre-tax non-cash pension settlement charge recognized in noninterest expenses. Remaining surplus assets of **$10.3 million** are expected to fund future 401(k) contributions[148](index=148&type=chunk) - The Corporation operates through two reportable business segments: Commercial Banking and Wealth Management Services. Commercial Banking includes lending, deposit generation, and investment activities, while Wealth Management Services offers investment management, financial planning, and trust services[151](index=151&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) Net Income by Business Segment (Dollars in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Commercial Banking | $11,510 | $8,475 | $23,474 | $16,073 | | Wealth Management Services | $1,735 | $2,340 | $1,950 | $5,678 | | Consolidated Total | $13,245 | $10,815 | $25,424 | $21,751 | Earnings Per Common Share (EPS) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Basic EPS | $0.69 | $0.63 | $1.32 | $1.28 | | Diluted EPS | $0.68 | $0.63 | $1.31 | $1.27 | Off-Balance Sheet Financial Instruments (Dollars in thousands) | Instrument | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commitments to extend credit | $965,716 | $968,858 | | Standby letters of credit | $8,776 | $12,455 | | ACL on Unfunded Commitments (6 months) | $1,190 | $1,440 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Corporation's financial performance, condition, and risk management, including operating results, balance sheet changes, liquidity, capital, and critical accounting policies [Forward-Looking Statements](index=47&type=section&id=Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements that involve known and unknown risks and uncertainties, which could cause actual results to differ materially from anticipated outcomes. Factors include changes in economic conditions, interest rates, loan demand, market volatility, regulatory changes, and operational risks[177](index=177&type=chunk)[179](index=179&type=chunk) [Non-GAAP Financial Measures and Reconciliation to GAAP](index=48&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliation%20to%20GAAP) This section explains the use of non-GAAP financial measures by management to evaluate performance, providing reconciliations to comparable GAAP measures - Management uses non-GAAP financial measures (e.g., adjusted net income, adjusted EPS, adjusted return on assets/equity) to evaluate performance, believing they are useful to investors and regulators by removing the impact of infrequent items. These measures are not GAAP substitutes and may not be comparable to other companies'[180](index=180&type=chunk)[181](index=181&type=chunk) Adjusted Net Income (Non-GAAP, Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income, as reported | $13,245 | $10,815 | $25,424 | $21,751 | | Less: total adjustments, after-tax | $— | $739 | $417 | $2,309 | | Adjusted net income (non-GAAP) | $13,245 | $10,076 | $25,007 | $19,442 | | Adjusted diluted EPS (non-GAAP) | $0.68 | $0.59 | $1.29 | $1.14 | | Adjusted return on average assets (non-GAAP) | 0.80% | 0.56% | 0.75% | 0.54% | | Adjusted return on average equity (non-GAAP) | 10.14% | 8.79% | 9.73% | 8.38% | [Overview](index=50&type=section&id=Overview) This section provides a general description of Washington Trust Bancorp, Inc.'s financial services, primary income sources, and key operating expenses - Washington Trust Bancorp, Inc. provides a full range of financial services, including commercial, residential, and consumer lending, deposit products, and wealth management services across Rhode Island, Massachusetts, and Connecticut[191](index=191&type=chunk) - Net interest income is the largest source of operating income, supplemented by noninterest income from wealth management, mortgage banking, and deposit services. Key expenses include salaries, outsourced services, and occupancy costs[192](index=192&type=chunk)[193](index=193&type=chunk) [Risk Management](index=51&type=section&id=Risk%20Management) This section describes the Corporation's comprehensive Enterprise Risk Management program, overseen by the Board of Directors, to identify, measure, monitor, and control material risks - The Corporation employs a comprehensive Enterprise Risk Management (ERM) program, overseen by the Board of Directors, to identify, measure, monitor, and control material risks including credit, interest rate, liquidity, price, compliance, strategic, reputation, and operational risks[194](index=194&type=chunk)[195](index=195&type=chunk) - The ERM program utilizes a 'three lines of defense' strategy: business units manage initial risks, corporate functions provide policy and oversight, and Internal Audit offers independent assurance to the Board[204](index=204&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) This section analyzes the Corporation's financial performance, including net income, net interest income, noninterest income, and expenses, for the reporting periods Summary of Consolidated Operations (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $37,185 | $31,585 | $5,600 | 18% | | Noninterest income | $17,078 | $16,660 | $418 | 3% | | Total revenues | $54,263 | $48,245 | $6,018 | 12% | | Provision for credit losses | $600 | $500 | $100 | 20% | | Noninterest expense | $36,530 | $33,910 | $2,620 | 8% | | Net income | $13,245 | $10,815 | $2,430 | 22% | | Adjusted net income (non-GAAP) | $13,245 | $10,076 | $3,169 | 31% | - Net income for Q2 2025 increased by **22%** to **$13.2 million**, and year-to-date net income increased by **17%** to **$25.4 million**, driven largely by increases in net interest income and impacted by infrequent transactions like a **$7.0 million** gain on sales-leaseback and a **$6.4 million** pension settlement charge in Q1 2025[206](index=206&type=chunk)[208](index=208&type=chunk) Net Interest Income and Margin (FTE Basis, Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | FTE Net Interest Income | $37,402 | $31,812 | $74,029 | $63,699 | | Net Interest Margin | 2.36% | 1.83% | 2.32% | 1.84% | | Interest Rate Spread | 1.87% | 1.29% | 1.83% | 1.29% | - The improvement in net interest income and NIM largely reflects benefits from balance sheet repositioning transactions in December 2024, including the sale of lower-yielding debt securities and residential real estate loans, reinvestment into higher-yielding securities, and pay-down of higher-cost FHLB advances and wholesale brokered time deposits[215](index=215&type=chunk)[217](index=217&type=chunk) Provision for Credit Losses (Dollars in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Provision for credit losses on loans | $650 | $500 | $2,050 | $1,400 | | Provision for credit losses on unfunded commitments | ($50) | $— | ($250) | ($200) | | Total Provision for Credit Losses | $600 | $500 | $1,800 | $1,200 | | Net Charge-offs (3 months) | $647 | $27 | | | | Net Charge-offs (6 months) | | | $3,000 | $79 | | ACL on loans to total loans | 0.80% | | 0.80% | | Noninterest Income (Dollars in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Wealth management revenues | $10,120 | $9,678 | $20,011 | $19,016 | | Mortgage banking revenues | $3,034 | $2,761 | $5,338 | $5,267 | | Card interchange fees | $1,247 | $1,275 | $2,756 | $2,420 | | Loan related derivative income | $676 | $49 | $777 | $333 | | Gain on sale of bank-owned properties, net | $— | $988 | $6,994 | $988 | | Total Noninterest Income | $17,078 | $16,660 | $39,721 | $33,823 | | Adjusted Noninterest Income (non-GAAP) | $17,078 | $15,672 | $32,727 | $30,735 | - Wealth management revenues increased due to higher asset-based revenues, with average AUA balances up **3%** (3 months) and **4%** (6 months) YoY. End-of-period AUA was **$7.2 billion** at June 30, 2025, up **1%** from December 31, 2024, reflecting net investment appreciation partially offset by client outflows[236](index=236&type=chunk)[237](index=237&type=chunk) Noninterest Expense (Dollars in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $23,025 | $21,260 | $45,447 | $43,035 | | Outsourced services | $4,404 | $4,096 | $8,750 | $7,876 | | Net occupancy | $2,662 | $2,397 | $5,403 | $4,958 | | Pension plan settlement charge | $— | $— | $6,436 | $— | | Total Noninterest Expense | $36,530 | $33,910 | $78,726 | $68,273 | | Adjusted Noninterest Expense (non-GAAP) | $36,530 | $33,910 | $72,290 | $68,273 | - Salaries and employee benefits increased due to lower performance-based compensation in 2024 and lower staffing levels in 2025. Outsourced services and net occupancy expenses also rose, with the latter reflecting additional lease expense from Q1 2025 sales-leaseback transactions[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) Income Tax Rates | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Effective income tax rate | 22.7% | 21.8% | 22.5% | 21.2% | | Adjusted effective income tax rate (non-GAAP) | 22.7% | 21.6% | 22.4% | 20.7% | | Blended statutory rate | 25.3% | 25.5% | 25.3% | 25.5% | - The effective income tax rate increased due to higher state tax expense and a greater proportion of taxable income. Net deferred tax assets decreased to **$40.5 million** at June 30, 2025, from **$63.0 million** at December 31, 2024, partly due to the realization of a deferred tax asset from loan reclassification and sale[249](index=249&type=chunk)[250](index=250&type=chunk) - Commercial Banking net income increased by **36%** (3 months) and **46%** (6 months) YoY, benefiting from balance sheet repositioning. Wealth Management Services net income decreased by **26%** (3 months) and **66%** (6 months) YoY, impacted by a Q1 2024 litigation settlement and a Q1 2025 pension settlement charge[252](index=252&type=chunk)[257](index=257&type=chunk) [Financial Condition](index=64&type=section&id=Financial%20Condition) This section analyzes the Corporation's balance sheet, including assets, liabilities, equity, loan portfolio composition, asset quality, and the allowance for credit losses Selected Financial Condition Data (Dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $6,745,167 | $6,930,647 | ($185,480) | (3%) | | Available for sale debt securities | $971,341 | $916,305 | $55,036 | 6% | | Total Loans | $5,140,260 | $5,137,838 | $2,422 | 0.05% | | Total Deposits | $5,045,248 | $5,115,800 | ($70,552) | (1%) | | FHLB advances | $1,001,000 | $1,125,000 | ($124,000) | (11%) | | Total Shareholders' Equity | $527,519 | $499,728 | $27,791 | 6% | - The securities portfolio increased by **$55.0 million** (**6%**) to **$971.3 million** at June 30, 2025, primarily due to purchases of U.S. government agency mortgage-backed securities and an increase in fair value, partially offset by routine pay-downs[265](index=265&type=chunk)[266](index=266&type=chunk) - Net unrealized losses on available for sale debt securities decreased to **$113.5 million** at June 30, 2025, from **$133.3 million** at December 31, 2024, mainly concentrated in U.S. government agency mortgage-backed securities and attributed to market interest rate changes[267](index=267&type=chunk) - Total loans increased marginally by **$2.4 million** (**0.05%**) to **$5.14 billion** at June 30, 2025. Commercial loans constitute **53%** of the portfolio, with CRE loans at **$2.2 billion** (up **1%**) and C&I loans at **$547.3 million** (up **1%**). Residential real estate loans remained at **41%** of total loans, decreasing by **$29.9 million** (**1%**)[268](index=268&type=chunk)[269](index=269&type=chunk)[274](index=274&type=chunk)[283](index=283&type=chunk)[289](index=289&type=chunk) - The CRE office loan segment totaled **$274.7 million** (**13%** of CRE loans) at June 30, 2025, with **98%** on accruing status and **85%** pass-rated. Multi-family loans, the largest CRE segment, totaled **$629.2 million** (**29%** of CRE loans) and were **100%** pass-rated and current[280](index=280&type=chunk)[281](index=281&type=chunk) - Nonperforming assets increased to **$26.1 million** (**0.39%** of total assets) at June 30, 2025, from **$23.3 million** (**0.34%**) at December 31, 2024. This was driven by a **$9.2 million** increase in nonaccrual C&I loans (primarily one relationship in Chapter 11 bankruptcy), partially offset by a **$5.8 million** decline in nonaccrual CRE loans due to charge-offs and payoffs[304](index=304&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) - Past due loans (30+ days) increased by **$2.1 million** to **$14.0 million**, largely due to residential mortgage loans. Potential problem loans identified by management increased to **$29.2 million**, primarily consisting of two current CRE office loans in Massachusetts[313](index=313&type=chunk)[318](index=318&type=chunk) - The Allowance for Credit Losses (ACL) on loans decreased by **$901 thousand** (**2%**) to **$41.1 million**, representing **0.80%** of total loans at June 30, 2025, down from **0.82%** at December 31, 2024. Net charge-offs for the six months ended June 30, 2025, totaled **$3.0 million**, reflecting partial charge-offs on two CRE office loans[325](index=325&type=chunk)[327](index=327&type=chunk) [Sources of Funds](index=74&type=section&id=Sources%20of%20Funds) This section examines the Corporation's funding sources, including changes in deposits and FHLB advances, and their impact on liquidity - Total deposits decreased by **$70.6 million** (**1%**) to **$5.0 billion** at June 30, 2025, primarily due to a **$295.7 million** (**99%**) decline in wholesale brokered time deposits. This was partially offset by a **$225.2 million** (**5%**) increase in in-market deposits, driven by growth in savings and interest-bearing demand deposits[335](index=335&type=chunk)[336](index=336&type=chunk) - FHLB advances decreased by **$124.0 million** (**11%**) to **$1.0 billion** at June 30, 2025. The reduction in both FHLB advances and wholesale brokered time deposits reflects increased in-market deposits, redeployment of cash from balance sheet repositioning, and liquidity management activities[339](index=339&type=chunk)[340](index=340&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the Corporation's liquidity position, including primary and contingent sources, and its capital adequacy, highlighting regulatory compliance - The Corporation's primary liquidity source is in-market deposits (**74%** of average assets). Contingent liquidity, including FHLB and FRBB borrowing capacity and unencumbered securities, totaled **$1.78 billion** at June 30, 2025, covering **164.9%** of uninsured deposits after exclusions[341](index=341&type=chunk)[344](index=344&type=chunk) - Total shareholders' equity increased by **$27.8 million** to **$527.5 million** at June 30, 2025, driven by net income and a **$23.2 million** improvement in Accumulated Other Comprehensive Loss (AOCL), partially offset by **$21.9 million** in dividend declarations. The total equity to total assets ratio improved to **7.82%**[350](index=350&type=chunk)[352](index=352&type=chunk) - The Corporation and the Bank remain 'well capitalized,' with a total risk-based capital ratio of **13.06%** at June 30, 2025, exceeding regulatory minimums[352](index=352&type=chunk) [Asset/Liability Management and Interest Rate Risk](index=77&type=section&id=Asset%2FLiability%20Management%20and%20Interest%20Rate%20Risk) This section details the Corporation's strategies for managing interest rate risk through income simulation and monitoring the market value of debt securities - The ALCO manages interest rate risk using income simulation to assess the effect of interest rate shifts on net interest income over 12-month and 13-24 month horizons. As of June 30, 2025, simulations indicated exposure to changing interest rates remained within established tolerance levels[354](index=354&type=chunk)[358](index=358&type=chunk) Estimated Change in Net Interest Income from Unchanged Rate Scenario | Rate Shift | Months 1 - 12 (June 30, 2025) | Months 13 - 24 (June 30, 2025) | | :--- | :--- | :--- | | 100 bps decrease | (2.01%) | (2.10%) | | 200 bps decrease | (3.74%) | (4.29%) | | 300 bps decrease | (5.63%) | (7.26%) | | 100 bps increase | 0.69% | (0.74%) | | 200 bps increase | 2.03% | (0.65%) | | 300 bps increase | 3.35% | (0.98%) | - The Corporation monitors potential changes in the market value of available-for-sale debt securities due to interest rate changes to assess capital position exposure. For example, a **100 basis point** rate decrease would increase market value by **$54.9 million**, while a **200 basis point** increase would decrease it by **$124.9 million** as of June 30, 2025[365](index=365&type=chunk)[367](index=367&type=chunk) [Critical Accounting Policies and Estimates](index=79&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section identifies the Allowance for Credit Losses (ACL) on loans as a critical accounting policy involving significant estimation uncertainty - Management considers the accounting policy related to the Allowance for Credit Losses (ACL) on loans to be a critical accounting policy, involving significant estimation uncertainty. No material changes have occurred in critical accounting policies since the December 31, 2024 Annual Report on Form 10-K[368](index=368&type=chunk)[369](index=369&type=chunk) [Recently Issued Accounting Pronouncements](index=79&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section directs readers to Note 2 for details on recently issued accounting pronouncements and their expected impact on the Corporation's financial statements - Refer to Note 2 of the Unaudited Consolidated Financial Statements for details on recently issued accounting pronouncements and their expected impact on the Corporation's financial statements[370](index=370&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=80&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the detailed market risk disclosures, specifically interest rate risk, within Management's Discussion and Analysis - Quantitative and qualitative disclosures about market risk are integrated into Item 2, specifically under the 'Asset/Liability Management and Interest Rate Risk' section[371](index=371&type=chunk) [Item 4. Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Corporation's disclosure controls and procedures and notes revisions to internal controls over financial reporting due to a new accounting system - The Corporation's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025, ensuring timely and accurate reporting[372](index=372&type=chunk) - Internal controls over financial reporting were revised and evaluated as effective following the implementation of a new wealth management and trust accounting system during Q2 2025[373](index=373&type=chunk) [PART II. Other Information](index=80&type=section&id=PART%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) The Corporation is involved in various routine legal claims and proceedings, but management believes their ultimate disposition will not materially affect the consolidated financial position or results of operations - Management believes that the ultimate disposition of current legal proceedings will not materially affect the Corporation's consolidated financial position or results of operations[374](index=374&type=chunk) [Item 1A. Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes to the risk factors previously described in the Annual Report on Form 10-K for December 31, 2024, have occurred[375](index=375&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation repurchased 10,000 shares of common stock in May 2025 under its 2025 Repurchase Program, which authorizes the repurchase of up to 850,000 shares by May 15, 2026 Share Repurchase Activity (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased under Publicly Announced Plans | Maximum Shares Remaining Under Plans | | :--- | :--- | :--- | :--- | :--- | | May 1 - 31, 2025 | 10,000 | $29.56 | 10,000 | 840,000 | | Total (Q2 2025) | 10,000 | $29.56 | 10,000 | 840,000 | - The 2025 Repurchase Program, adopted on May 15, 2025, authorizes the repurchase of up to **850,000 shares** (approximately **4%** of outstanding common stock) and expires on May 15, 2026[376](index=376&type=chunk) [Item 5. Other Information](index=81&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, terminated, or modified by the Corporation's directors or officers during the three months ended June 30, 2025 - No insider trading arrangements (Rule 10b5-1 or non-Rule 10b5-1) were adopted, terminated, or modified by directors or officers during Q2 2025[377](index=377&type=chunk) [Item 6. Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including certifications from the CEO and CFO, and the Inline XBRL formatted financial statements - Exhibits include CEO and CFO certifications (31.1, 31.2, 32.1) and Inline XBRL formatted financial statements (101, 104)[378](index=378&type=chunk) [Signatures](index=82&type=section&id=Signatures) The report is duly signed by key executives of Washington Trust Bancorp, Inc., confirming compliance with Securities Exchange Act requirements - The report is signed by Edward O. Handy III (Chairman and CEO), Ronald S. Ohsberg (SEVP, CFO, and Treasurer), and Maria N. Janes (EVP, Chief Accounting Officer, and Controller) on August 6, 2025[383](index=383&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $13.2 million or $0.68 per share, an increase from $12.2 million and $0.63 per share in the previous quarter, reflecting a growth of $1.5 million or $0.07 per share when excluding infrequent items from Q1 [8] - Net interest income was $37.2 million, up by $763,000 or 2% on a linked quarter basis, with the margin increasing by seven basis points to $2.36 [8][9] - Non-interest income totaled $17.1 million in Q2, adjusted for a Q1 sale leaseback net gain, this represented an increase of $1.4 million or 9% [9] Business Line Data and Key Metrics Changes - Wealth Management revenues were $10.1 million, up by $229,000 or 2%, driven by increased transaction-based and seasonal tax servicing fee income, although asset-based revenues saw a modest decline [9] - Mortgage banking revenues totaled $3 million, an increase of $730,000 or 32%, with the mortgage pipeline at $102 million, up by $6 million or 7% from the previous quarter [10] Market Data and Key Metrics Changes - Total loans increased by $44 million or 1%, with commercial loans rising by $57 million or 2%, while residential loans decreased by 1% [12] - End market deposits were up by $30 million or 1% from the end of the first quarter and by $47 million or 9% year-over-year [12] Company Strategy and Development Direction - The company is focused on enhancing its wealth management team and has finalized the conversion of its core wealth management system to improve customer experience [5][6] - There is an ongoing strategy to explore potential expansion opportunities in Massachusetts, particularly in light of recent market consolidations, while maintaining a focus on organic growth [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth, particularly in the commercial sector, with a pipeline of approximately $1.4 billion, indicating a positive outlook for the second half of the year [35] - There is a cautious optimism regarding borrower sentiment, with management noting a level of uncertainty in the market but also recognizing some positive investment activity [38][39] Other Important Information - The company’s asset and credit quality metrics remain solid, with non-accruing loans at 51 basis points and past due loans at 27 basis points [12] - The allowance for loan losses totaled $41.1 million, providing coverage of 157% for non-performing loans [13] Q&A Session Summary Question: How is the company thinking about net interest margin and Fed rate cuts? - Management expects modest expansion in net interest margin for Q3, with higher deposit costs impacting projections [18] Question: What is the mix of mortgage originations between purchase and refinance? - Approximately 75% of mortgage originations are related to the purchase market, with a predominant mix of thirty-year fixed loans [20][21] Question: Is there a strategy for expansion into Massachusetts? - Management is considering opportunities in Massachusetts but is focused on building out existing locations in Rhode Island first [22][24] Question: What is the sentiment of borrowers compared to previous quarters? - Borrower sentiment is cautiously optimistic, with some investment activity noted, but uncertainty remains in the market [38][39] Question: Can the company expect similar levels of derivative income in the future? - Management leans towards a more normalized level of derivative income, as it is hard to predict [40] Question: What is the status of non-performing loans? - There is a potential exposure to a broadband contractor that filed for Chapter 11, with appropriate reserves in place [53] Question: How is the company addressing net outflows in the Wealth Management Unit? - The company has added talent and completed a core system conversion to improve client service and experience [29][30]

Financial Data and Key Metrics Changes - The company reported net income of $13.2 million or $0.68 per share, an increase from $12.2 million and $0.63 per share in the previous quarter, reflecting a growth of $1.5 million or $0.07 per share when excluding infrequent items from Q1 [7][8] - Net interest income was $37.2 million, up by $763,000 or 2% on a linked quarter basis, with the margin increasing by seven basis points to $2.36 [8][9] - Non-interest income totaled $17.1 million in Q2, adjusted for a prior sale leaseback net gain, this represented an increase of $1.4 million or 9% [9][10] Business Line Data and Key Metrics Changes - Wealth Management revenues were $10.1 million, up by $229,000 or 2%, driven by increased transaction-based and seasonal tax servicing fee income, although asset-based revenues saw a modest decline [9][10] - Mortgage banking revenues totaled $3 million, an increase of $730,000 or 32%, with the mortgage pipeline at $102 million, up by $6 million or 7% from the previous quarter [10][11] - Total loans increased by $44 million or 1%, with commercial loans rising by $57 million or 2%, while residential loans decreased by 1% [12] Market Data and Key Metrics Changes - End market deposits rose by $30 million or 1% from the end of the first quarter and by $407 million or 9% year-over-year [12] - The allowance for loan losses totaled $41.1 million or 80 basis points on total loans, providing non-performing loan coverage of 157% [13] Company Strategy and Development Direction - The company is focused on enhancing its wealth management team and has finalized the conversion of its core wealth management system to improve customer experience [4][5] - There is an ongoing strategy to explore potential expansion into Massachusetts, considering the recent consolidation in the banking sector [22][24] - The management emphasized a preference for organic growth and maintaining independence rather than pursuing aggressive acquisitions [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan growth, with a pipeline of $1.4 billion and expectations for low single-digit growth for the year [36] - There is a recognition of ongoing uncertainty in the economy, particularly in real estate, with borrowers being careful in their investments [39] - The sentiment among borrowers is described as optimistic but cautious, with a focus on careful investment decisions [39] Other Important Information - The company is committed to maintaining strong capital levels and has decided to prioritize capital preservation over stock buybacks at this time [65][66] - The company has seen a significant uptick in non-performing loans related to a broadband infrastructure contractor, with appropriate reserves in place [56][57] Q&A Session Summary Question: Thoughts on net interest margin and Fed rate cuts - Management expects modest expansion in net interest margin for Q3, with higher deposit costs impacting projections [17][18] Question: Mortgage originations breakdown - Approximately 75% of mortgage originations are related to the purchase market, with a predominant mix of thirty-year fixed loans [20][21] Question: Strategic expansion into Massachusetts - Management is considering opportunities in Massachusetts but prefers to build on existing strengths in Rhode Island first [22][24] Question: Loan growth expectations - The company is optimistic about loan growth, with a strong pipeline and expectations for continued growth in the commercial sector [36] Question: Fee income and derivative income outlook - Management anticipates a return to more normalized levels of derivative income after a strong quarter [40][41] Question: Capital levels and stock buyback considerations - The company has approval for buybacks but is currently focused on capital preservation and operational growth [65][66]

Core Insights - Washington Trust Bancorp (WASH) reported revenue of $54.26 million for the quarter ended June 2025, marking a year-over-year increase of 12.5% and exceeding the Zacks Consensus Estimate of $53.92 million by 0.64% [1] - The company's earnings per share (EPS) for the same period was $0.68, compared to $0.63 a year ago, resulting in an EPS surprise of 7.94% [1] Financial Metrics - Net Interest Margin was reported at 2.4%, slightly above the average estimate of 2.3% based on two analysts [4] - The Efficiency Ratio stood at 67.3%, compared to the average estimate of 67.5% from two analysts [4] - Total noninterest income reached $17.08 million, surpassing the average estimate of $16.21 million based on two analysts [4] - Net Interest Income was reported at $37.19 million, which was below the average estimate of $37.72 million from two analysts [4] Stock Performance - Over the past month, shares of Washington Trust have returned +8.5%, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Washington Trust Bancorp (WASH) reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and showing an increase from $0.63 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +7.94%, with the company previously expected to post earnings of $0.62 per share but actually producing $0.61, resulting in a surprise of -1.61% [2] - Washington Trust's revenues for the quarter ended June 2025 were $54.26 million, surpassing the Zacks Consensus Estimate by 0.64%, compared to $48.24 million in the same quarter last year [3] - The company has exceeded consensus revenue estimates four times over the last four quarters [3] Stock Performance - Washington Trust shares have declined approximately 7.2% since the beginning of the year, while the S&P 500 has gained 7.1% [4] - The current Zacks Rank for Washington Trust is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $54.78 million, and for the current fiscal year, it is $2.62 on revenues of $219.65 million [8] - The outlook for the industry, particularly the Banks - Northeast sector, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable environment for performance [9]

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) This section provides an overview of Washington Trust Bank's second quarter 2025 performance, highlighting key financial achievements and strategic business segment growth [Second Quarter 2025 Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Results%20Overview) Washington Trust Bank achieved growth in net income and diluted earnings per share in Q2 2025, reflecting positive performance across its diversified business model, including increases in net interest income, wealth management revenue, and mortgage banking income, while maintaining strong capital levels | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net Income | $13.2 Million | $12.2 Million | Increase $1.0 Million | | Diluted EPS | $0.68 | $0.63 | Increase $0.05 | | Adjusted Net Income (Non-GAAP) | - | $11.8 Million | - | | Adjusted Diluted EPS (Non-GAAP) | - | $0.61 | - | - CEO Edward O. Handy III stated that Q2 results reflect positive performance across a diversified business model, with growth in net interest income, wealth management, and mortgage banking, alongside strong capital levels[3](index=3&type=chunk) [Key Financial Highlights (QoQ)](index=1&type=section&id=Key%20Financial%20Highlights%20(QoQ)) In Q2 2025, net interest margin increased by 7 basis points quarter-over-quarter to 2.36%, credit loss provisions decreased, wealth management and mortgage banking income grew by 2% and 32% respectively, and both total loans and in-market deposits increased by 1% | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Net Interest Margin | 2.36% | 2.29% | Increase 7 bps | | Provision for Credit Losses | $600 Thousand | $1.2 Million | Decrease $600 Thousand | | Wealth Management Income | Growth 2% | - | - | | Mortgage Banking Income | Growth 32% | - | - | | Total Loans | $5.1 Billion | - | Growth 1% (vs. Mar 31) | | In-Market Deposits | $5.0 Billion | - | Growth 1% (vs. Mar 31) | | In-Market Deposits | $5.0 Billion | - | Growth 9% (vs. Jun 30, 2024) | [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section provides an in-depth analysis of the company's net interest income, noninterest income, and noninterest expense for the reporting period [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income increased by 2% quarter-over-quarter in Q2 2025, with net interest margin rising 7 basis points to 2.36%, primarily driven by a slight increase in earning asset yields and a decrease in interest-bearing liability costs | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $37.2 Million | $36.4 Million | Increase $763 Thousand (2%) | | Net Interest Margin | 2.36% | 2.29% | Increase 7 bps | | Yield on Earning Assets | 4.99% | - | Increase 1 bps | | Cost of Interest-Bearing Liabilities | 3.12% | - | Decrease 7 bps | [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income decreased by 24.6% quarter-over-quarter in Q2 2025, primarily due to a $7.0 million pre-tax net gain from a sale-leaseback transaction recognized in the prior quarter; excluding this, adjusted noninterest income grew 9% QoQ, with strong performance in wealth management and mortgage banking income | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Noninterest Income | $17.1 Million | $22.7 Million | Decrease $5.6 Million (24.6%) | | Adjusted Noninterest Income (Non-GAAP) | - | - | Increase $1.4 Million (9%) | | Wealth Management Income | $10.1 Million | $9.9 Million | Increase $229 Thousand (2%) | | Mortgage Banking Income | $3.0 Million | $2.3 Million | Increase $730 Thousand (32%) | | Loan-Related Derivative Income | $676 Thousand | $101 Thousand | Increase $575 Thousand (569%) | - Wealth management income growth was primarily concentrated in seasonal tax service fee income, while assets under administration (AUA) period-end balance grew 5% to **$7.2 billion**[6](index=6&type=chunk) - Mortgage banking income growth reflects an increase in loan sales to the secondary market, with loan sales increasing 55% QoQ to **$116.8 million**[6](index=6&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense) Noninterest expense decreased by 13% quarter-over-quarter in Q2 2025, primarily due to a $6.4 million pension plan settlement charge recognized in the prior quarter; excluding this, adjusted noninterest expense grew 2% QoQ, with increases in salaries and employee benefits and advertising expenses | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Noninterest Expense | $36.5 Million | $42.2 Million | Decrease $5.7 Million (13%) | | Adjusted Noninterest Expense (Non-GAAP) | - | - | Increase $770 Thousand (2%) | | Salaries and Employee Benefits | $23.0 Million | $22.4 Million | Increase $603 Thousand (3%) | | Advertising and Promotion Expenses | $717 Thousand | $410 Thousand | Increase $307 Thousand (75%) | - The increase in salaries and employee benefits primarily reflects higher mortgage originator commission expenses due to increased business volume[7](index=7&type=chunk) [Income Tax](index=4&type=section&id=Income%20Tax) This section details the company's income tax expense and effective tax rate for the current and prior periods [Income Tax Expense and Rate](index=4&type=section&id=Income%20Tax%20Expense%20and%20Rate) Income tax expense for Q2 2025 was $3.9 million, with an effective tax rate of 22.7%, slightly higher than the previous quarter; the company anticipates an effective tax rate of approximately 22.4% for the full year 2025 | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | $3.9 Million | $3.5 Million | Increase $400 Thousand | | Effective Tax Rate | 22.7% | 22.3% | Increase 0.4% | | Full-Year 2025 Expected Effective Tax Rate | 22.4% | - | - | [Balance Sheet Overview](index=4&type=section&id=Balance%20Sheet%20Overview) This section provides a summary of the company's key balance sheet components, including investment securities, loans, deposits, and borrowings [Investment Securities](index=4&type=section&id=Investment%20Securities) As of June 30, 2025, the total investment securities portfolio was $971 million, a 6% quarter-over-quarter increase, primarily driven by $73 million in securities purchases, partially offset by routine paydowns of mortgage-backed securities | Metric | Jun 30, 2025 | Mar 31, 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Securities Portfolio | $971 Million | $917 Million | Increase $54 Million (6%) | | % of Total Assets | 14% | 14% | No Change | [Loans](index=4&type=section&id=Loans) As of June 30, 2025, total loans amounted to $5.1 billion, representing a 1% quarter-over-quarter increase, with commercial loans growing 2% while residential real estate loans decreased by 1% | Metric | Jun 30, 2025 | Mar 31, 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Total Loans | $5.1 Billion | $5.096 Billion | Increase $44 Million (1%) | | Commercial Loans | - | - | Increase $57 Million (2%) | | Residential Real Estate Loans | - | - | Decrease $17 Million (1%) | | Consumer Loans | - | - | Increase $4 Million (1%) | [Deposits and Borrowings](index=4&type=section&id=Deposits%20and%20Borrowings) As of June 30, 2025, total deposits were $5.0 billion, remaining largely flat quarter-over-quarter, with in-market deposits growing 1% while wholesale brokered deposits significantly decreased by 93%, and Federal Home Loan Bank (FHLB) advances increased by 18% | Metric | Jun 30, 2025 | Mar 31, 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Total Deposits | $5.0 Billion | $5.04 Billion | Increase $5 Million (0.1%) | | In-Market Deposits | $5.0 Billion | - | Increase $30 Million (1%) | | Wholesale Brokered Deposits | $2 Million | $27 Million | Decrease $25 Million (93%) | | FHLB Advances | $1.0 Billion | $850 Million | Increase $151 Million (18%) | | Contingent Liquidity | $1.8 Billion | - | - | - As of June 30, 2025, total contingent liquidity was **$1.8 billion**, including available cash, unpledged securities, and unused collateralized borrowing capacity[11](index=11&type=chunk) [Asset Quality](index=4&type=section&id=Asset%20Quality) This section provides an overview of the company's asset quality, including nonaccrual loans, past due loans, and credit loss allowances [Nonaccrual and Past Due Loans](index=4&type=section&id=Nonaccrual%20and%20Past%20Due%20Loans) As of June 30, 2025, both nonaccrual loans and past due loans increased quarter-over-quarter, with the rise in nonaccrual loans primarily attributed to a **$9.4 million** commercial and industrial loan being placed on nonaccrual status | Metric | Jun 30, 2025 | Mar 31, 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Nonaccrual Loans | $26.1 Million | $21.6 Million | Increase $4.5 Million | | Nonaccrual Loans as % of Total Loans | 0.51% | 0.42% | Increase 0.09% | | Past Due Loans | $14.0 Million | $10.2 Million | Increase $3.8 Million | | Past Due Loans as % of Total Loans | 0.27% | 0.20% | Increase 0.07% | - As of June 30, 2025, **54%** of nonaccrual loans were commercial loans, and **46%** were residential and consumer loans[12](index=12&type=chunk) - As of June 30, 2025, **13%** of past due loans were commercial loans, and **87%** were residential and consumer loans[13](index=13&type=chunk) [Allowance for Credit Losses (ACL) & Net Charge-offs](index=5&type=section&id=Allowance%20for%20Credit%20Losses%20(ACL)%20%26%20Net%20Charge-offs) In Q2 2025, the allowance for credit losses on loans remained stable, while the provision for credit losses and net charge-offs both significantly decreased compared to the previous quarter | Metric | Q2 2025 | Q1 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Allowance for Credit Losses on Loans | $41.1 Million | $41.1 Million | No Change | | ACL on Loans as % of Total Loans | 0.80% | 0.81% | Decrease 0.01% | | Provision for Credit Losses | $600 Thousand | $1.2 Million | Decrease $600 Thousand | | Net Charge-offs | $647 Thousand | $2.3 Million | Decrease $1.653 Million | [Capital and Dividends](index=5&type=section&id=Capital%20and%20Dividends) This section outlines the company's shareholders' equity, dividend payments, and capital ratios, demonstrating its strong capital position [Shareholders' Equity and Dividends](index=5&type=section&id=Shareholders'%20Equity%20and%20Dividends) As of June 30, 2025, total shareholders' equity increased by 1% quarter-over-quarter, driven by net income and an improvement in accumulated other comprehensive loss, partially offset by quarterly dividends; the company's capital levels exceed regulatory minimums and are considered well-capitalized | Metric | Jun 30, 2025 | Mar 31, 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | $527.5 Million | $521.7 Million | Increase $5.8 Million (1%) | | Quarterly Dividend | $0.56/share | $0.56/share | No Change | | Total Risk-Based Capital Ratio | 13.06% | 13.13% | Decrease 0.07% | | Book Value per Share | $27.36 | $27.06 | Increase $0.30 | [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) This section provides details for the upcoming conference call to discuss the company's Q2 2025 financial results [Q2 2025 Earnings Conference Call](index=5&type=section&id=Q2%202025%20Earnings%20Conference%20Call) Washington Trust Bank will host a conference call on July 22, 2025, to discuss its second quarter results, business highlights, and outlook, with options for dial-in, audio replay, and webcast - Conference call time: **Tuesday, July 22, 2025, at 8:30 AM (ET)**[19](index=19&type=chunk) - Dial-in information: **1-833-470-1428**, access code **177395**[19](index=19&type=chunk) - Webcast: Available on the Washington Trust Investor Relations website at **https://ir.washtrust.com** and accessible until September 30, 2025[19](index=19&type=chunk) [Company Background](index=6&type=section&id=Company%20Background) This section provides a brief overview of Washington Trust Bank's history, services, and operational footprint [Washington Trust Overview](index=6&type=section&id=Washington%20Trust%20Overview) Founded in 1800, Washington Trust Bank is the oldest community bank in the United States and Rhode Island's largest state-chartered bank, offering a full range of financial services including commercial banking, mortgage banking, personal banking, and wealth management - Washington Trust Bank was founded in **1800**, making it the oldest community bank in the United States[20](index=20&type=chunk) - It offers commercial banking, mortgage banking, personal banking, and wealth management and trust services[20](index=20&type=chunk) - The bank operates offices in **Rhode Island, Connecticut, and Massachusetts**[20](index=20&type=chunk) [Important Disclosures](index=6&type=section&id=Important%20Disclosures) This section contains critical disclosures regarding forward-looking statements and the use of non-GAAP financial measures [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations; investors should not place undue reliance on these statements and should carefully evaluate related risk factors - Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[21](index=21&type=chunk) - Words identifying forward-looking statements include "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and similar expressions[21](index=21&type=chunk) - Factors that could cause differences include changes in economic conditions, interest rate fluctuations, changes in loan demand and collectibility, market volatility, and regulatory and operational risks[22](index=22&type=chunk)[24](index=24&type=chunk) [Explanation of Non-GAAP Financial Measures](index=6&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) This press release includes non-GAAP financial measures that management believes provide supplementary information useful to regulators and market analysts in evaluating the company's financial condition; however, these disclosures should not be considered a substitute for GAAP financial results and may not be comparable to non-GAAP measures used by other companies - Non-GAAP financial measures are used by regulators and market analysts to evaluate the company's financial condition and are useful to investors[23](index=23&type=chunk) - Non-GAAP disclosures should not be considered a substitute for GAAP financial results and may not be comparable to those of other companies[23](index=23&type=chunk) - Non-GAAP metrics include adjusted noninterest income, adjusted noninterest expense, adjusted net income, adjusted diluted earnings per share, and measures based on tangible common equity and tangible assets[23](index=23&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated financial statements, including the balance sheets and statements of income [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets as of June 30, 2025, and prior periods, detailing the company's assets, liabilities, and shareholders' equity composition | | Jun 30, 2025 (Thousands) | Mar 31, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Assets:** | | | | | | | Cash and due from banks | $43,997 | $33,394 | $21,534 | $33,694 | $28,211 | | Interest-bearing deposits | 119,582 | 82,804 | 88,368 | 173,277 | 75,666 | | Short-term investments | 4,145 | 4,041 | 3,987 | 3,772 | 3,654 | | Mortgage loans held for sale | 35,681 | 21,953 | 21,708 | 20,864 | 26,116 | | Debt securities available for sale | 971,341 | 917,545 | 916,305 | 973,266 | 951,828 | | FHLB stock | 45,273 | 38,899 | 49,817 | 57,439 | 66,166 | | Loans, net | 5,099,201 | 5,055,154 | 5,095,878 | 5,472,240 | 5,586,724 | | **Liabilities:** | | | | | | | Total deposits | 5,045,248 | 5,040,581 | 5,115,800 | 5,171,890 | 4,976,126 | | FHLB advances | 1,001,000 | 850,000 | 1,125,000 | 1,300,000 | 1,550,000 | | **Shareholders' Equity:** | | | | | | | Total shareholders' equity | 527,519 | 521,680 | 499,728 | 502,229 | 470,957 | | **Total Assets** | **$6,745,167** | **$6,586,015** | **$6,930,647** | **$7,141,571** | **$7,184,360** | | **Total Liabilities and Shareholders' Equity** | **$6,745,167** | **$6,586,015** | **$6,930,647** | **$7,141,571** | **$7,184,360** | [Condensed Consolidated Statements of Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section provides the unaudited condensed consolidated statements of income for the three and six months ended June 30, 2025, and prior periods, detailing the company's interest income, interest expense, noninterest income, noninterest expense, and net income | | Jun 30, 2025 (Thousands) | Mar 31, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Interest Income:** | | | | | | | Interest and fees on loans | $67,345 | $66,656 | $71,432 | $75,989 | $76,240 | | Interest on debt securities | 9,238 | 8,835 | 7,015 | 6,795 | 6,944 | | Other interest income | 1,821 | 2,762 | 2,622 | 4,436 | 2,813 | | **Total Interest and Dividend Income** | **78,846** | **79,463** | **81,839** | **87,586** | **85,997** | | **Interest Expense:** | | | | | | | Deposits | 30,864 | 31,748 | 34,135 | 37,203 | 36,713 | | FHLB advances | 10,451 | 10,946 | 14,388 | 17,717 | 17,296 | | Subordinated debt | 346 | 347 | 380 | 404 | 403 | | **Total Interest Expense** | **41,661** | **43,041** | **48,903** | **55,324** | **54,412** | | **Net Interest Income** | **37,185** | **36,422** | **32,936** | **32,262** | **31,585** | | Provision for credit losses | 600 | 1,200 | 1,000 | 200 | 500 | | **Noninterest Income:** | | | | | | | Wealth management income | 10,120 | 9,891 | 10,049 | 9,989 | 9,678 | | Mortgage banking income | 3,034 | 2,304 | 2,848 | 2,866 | 2,761 | | Bank-owned life insurance income | 826 | 769 | 779 | 770 | 753 | | Gain on sale of bank-owned property | — | 6,994 | — | — | 988 | | Other income | 367 | 331 | 310 | 416 | 387 | | **Total Noninterest Income** | **17,078** | **22,643** | **(77,892)** | **16,272** | **16,660** | | **Noninterest Expense:** | | | | | | | Salaries and employee benefits | 23,025 | 22,422 | 21,875 | 21,350 | 21,260 | | Pension plan settlement charge | — | 6,436 | — | — | — | | **Total Noninterest Expense** | **36,530** | **42,196** | **34,292** | **34,504** | **33,910** | | **Income Tax Expense** | **3,888** | **3,490** | **(19,457)** | **2,849** | **3,020** | | **Net Income** | **$13,245** | **$12,179** | **($60,791)** | **$10,981** | **$10,815** | | **Diluted Earnings Per Share** | **$0.68** | **$0.63** | **($3.46)** | **$0.64** | **$0.63** | [Selected Financial Highlights (Detailed)](index=10&type=section&id=Selected%20Financial%20Highlights%20(Detailed)) This section provides a detailed breakdown of key financial highlights, including share and equity-related data, capital ratios, balance sheet ratios, and performance ratios [Share and Equity Related Data](index=10&type=section&id=Share%20and%20Equity%20Related%20Data) This section presents key metrics such as book value per share, tangible book value per share, and market value per share as of June 30, 2025, and prior periods | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Book Value per Share | $27.36 | $27.06 | $25.93 | $29.44 | $27.61 | | Tangible Book Value per Share (Non-GAAP) | $23.91 | $23.61 | $22.46 | $25.51 | $23.67 | | Market Value per Share | $28.28 | $30.86 | $31.35 | $32.21 | $27.41 | | Shares Outstanding, Period End (Thousands) | 19,562 | 19,562 | 19,562 | 17,363 | 17,363 | | Common Shares Outstanding, Period End (Thousands) | 19,283 | 19,276 | 19,274 | 17,058 | 17,058 | [Capital Ratios](index=10&type=section&id=Capital%20Ratios) This section lists various capital ratios as of June 30, 2025, and prior periods, demonstrating the company's capital adequacy and compliance with regulatory requirements | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Tier 1 Risk-Based Capital Ratio | 12.17% | 12.23% | 11.64% | 11.39% | 11.01% | | Total Risk-Based Capital Ratio | 13.06% | 13.13% | 12.47% | 12.21% | 11.81% | | Tier 1 Leverage Ratio | 8.66% | 8.45% | 8.13% | 7.85% | 7.82% | | Common Equity Tier 1 Capital Ratio | 11.71% | 11.76% | 11.20% | 10.95% | 10.59% | [Balance Sheet Ratios](index=10&type=section&id=Balance%20Sheet%20Ratios) This section provides balance sheet ratios as of June 30, 2025, and prior periods, including equity to assets and loans to deposits ratios | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity to Assets | 7.82% | 7.92% | 7.21% | 7.03% | 6.56% | | Tangible Equity to Tangible Assets (Non-GAAP) | 6.90% | 6.98% | 6.31% | 6.15% | 5.67% | | Loans to Deposits | 101.8% | 100.7% | 105.5% | 106.2% | 112.8% | [Performance Ratios](index=10&type=section&id=Performance%20Ratios) This section lists annualized performance ratios as of June 30, 2025, and prior periods, including net interest margin, return on average assets, return on average equity, and efficiency ratio, with both GAAP and non-GAAP adjusted data | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Margin | 2.36% | 2.29% | 1.95% | 1.85% | 1.83% | | Return on Average Assets | 0.80% | 0.73% | (3.45%) | 0.60% | 0.60% | | Adjusted Return on Average Assets (Non-GAAP) | 0.80% | 0.71% | 0.59% | 0.60% | 0.56% | | Return on Average Tangible Assets (Non-GAAP) | 0.81% | 0.71% | 0.60% | 0.61% | 0.57% | | Return on Average Equity | 10.14% | 9.63% | (48.25%) | 8.99% | 9.43% | | Adjusted Return on Average Equity (Non-GAAP) | 10.14% | 9.30% | 8.29% | 8.99% | 8.79% | | Return on Average Tangible Equity (Non-GAAP) | 11.62% | 10.69% | 9.57% | 10.43% | 10.29% | | Efficiency Ratio | 67.3% | 71.4% | (76.3%) | 71.1% | 70.3% | | Adjusted Efficiency Ratio (Non-GAAP) | 67.3% | 68.7% | 70.0% | 71.1% | 71.8% | [Business Segment Performance](index=11&type=section&id=Business%20Segment%20Performance) This section analyzes the performance of the company's key business segments, including wealth management and mortgage banking [Wealth Management Results](index=11&type=section&id=Wealth%20Management%20Results) In Q2 2025, total wealth management income increased by 2% quarter-over-quarter, with transactional income significantly growing by 207% while asset-based income slightly decreased; period-end assets under administration (AUA) balance grew 5% QoQ | Metric | Q2 2025 (Thousands) | Q1 2025 (Thousands) | QoQ Change | | :--- | :--- | :--- | :--- | | Total Wealth Management Income | $10,120 | $9,891 | Increase $229 (2%) | | Asset-Based Income | $9,745 | $9,769 | Decrease $24 (0.2%) | | Transactional Income | $375 | $122 | Increase $253 (207%) | | Period-End AUA Balance | $7,181,715 | $6,818,390 | Increase $363,325 (5%) | [Mortgage Banking Results](index=11&type=section&id=Mortgage%20Banking%20Results) In Q2 2025, mortgage banking income increased by 32% quarter-over-quarter, primarily driven by higher gains on loan sales; both residential mortgage loan originations and sales volumes significantly increased | Metric | Q2 2025 (Thousands) | Q1 2025 (Thousands) | QoQ Change | | :--- | :--- | :--- | :--- | | Total Mortgage Banking Income | $3,034 | $2,304 | Increase $730 (32%) | | Net Gains on Loan Sales | $2,460 | $1,575 | Increase $885 | | Total Residential Mortgage Loan Originations | $181,543 | $103,181 | Increase $78,362 | | Total Residential Mortgage Loan Sales | $116,775 | $75,499 | Increase $41,276 | [Loan Portfolio Analysis](index=12&type=section&id=Loan%20Portfolio%20Analysis) This section provides a detailed analysis of the company's loan portfolio, segmented by type, property location, and industry [Loan Composition by Type](index=12&type=section&id=Loan%20Composition%20by%20Type) As of June 30, 2025, commercial loans constituted the largest portion of the company's loan portfolio, followed by residential real estate loans and consumer loans | Loan Type | Jun 30, 2025 (Thousands) | Mar 31, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Real Estate | $2,178,925 | $2,134,107 | $2,154,504 | $2,102,091 | $2,191,996 | | Commercial & Industrial | 547,318 | 535,030 | 542,474 | 566,279 | 558,075 | | **Total Commercial Loans** | **2,726,243** | **2,669,137** | **2,696,978** | **2,668,370** | **2,750,071** | | Residential Real Estate | 2,096,250 | 2,113,307 | 2,126,171 | 2,529,397 | 2,558,533 | | Home Equity | 300,917 | 296,563 | 297,119 | 299,379 | 302,027 | | Other Consumer | 16,850 | 17,203 | 17,570 | 17,724 | 18,471 | | **Total Consumer Loans** | **317,767** | **313,766** | **314,689** | **317,103** | **320,498** | | **Total Loans** | **$5,140,260** | **$5,096,210** | **$5,137,838** | **$5,514,870** | **$5,629,102** | [Commercial Real Estate Loans by Property Location](index=12&type=section&id=Commercial%20Real%20Estate%20Loans%20by%20Property%20Location) As of June 30, 2025, commercial real estate loans were primarily concentrated in Connecticut, Massachusetts, and Rhode Island, with these three states collectively accounting for 89% of the total | Location | Jun 30, 2025 (Thousands) | % of Total | Dec 31, 2024 (Thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Connecticut | $850,350 | 39% | $839,079 | 39% | | Massachusetts | 650,834 | 30% | 663,026 | 31% | | Rhode Island | 429,385 | 20% | 434,244 | 20% | | Other States | 248,356 | 11% | 218,155 | 10% | | **Total Commercial Real Estate Loans** | **$2,178,925** | **100%** | **$2,154,504** | **100%** | [Residential Real Estate Loans by Property Location](index=12&type=section&id=Residential%20Real%20Estate%20Loans%20by%20Property%20Location) As of June 30, 2025, residential real estate loans were predominantly distributed across Massachusetts and Rhode Island, collectively representing 93% of the total | Location | Jun 30, 2025 (Thousands) | % of Total | Dec 31, 2024 (Thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Massachusetts | $1,489,658 | 71% | $1,530,847 | 72% | | Rhode Island | 459,486 | 22% | 443,237 | 21% | | Connecticut | 124,623 | 6% | 128,933 | 6% | | Other States | 22,483 | 1% | 23,154 | 1% | | **Total Residential Real Estate Loans** | **$2,096,250** | **100%** | **$2,126,171** | **100%** | [Commercial Real Estate Portfolio Segmentation](index=13&type=section&id=Commercial%20Real%20Estate%20Portfolio%20Segmentation) As of June 30, 2025, the commercial real estate loan portfolio was primarily composed of multi-family residential properties, followed by retail and industrial/warehouse properties | Property Type | Jun 30, 2025 (Thousands) | % of Total | Dec 31, 2024 (Thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Multi-Family Residential | $629,184 | 29% | $567,243 | 26% | | Retail | 407,039 | 19% | 433,146 | 20% | | Industrial and Warehouse | 370,839 | 17% | 358,425 | 17% | | Office | 274,657 | 13% | 289,853 | 13% | | Hotel | 222,715 | 10% | 213,585 | 10% | | Medical Facilities | 193,791 | 9% | 205,858 | 10% | | Mixed-Use | 26,379 | 1% | 29,023 | 1% | | Other | 54,321 | 2% | 57,371 | 3% | | **Total Commercial Real Estate Loans** | **$2,178,925** | **100%** | **$2,154,504** | **100%** | [Commercial & Industrial Portfolio Segmentation](index=13&type=section&id=Commercial%20%26%20Industrial%20Portfolio%20Segmentation) As of June 30, 2025, the commercial and industrial loan portfolio was primarily concentrated in the healthcare and social assistance sector, followed by real estate rental and educational services | Industry | Jun 30, 2025 (Thousands) | % of Total | Dec 31, 2024 (Thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Healthcare and Social Assistance | $118,747 | 22% | $126,547 | 23% | | Real Estate Rental | 56,715 | 10% | 63,992 | 12% | | Educational Services | 55,174 | 10% | 47,092 | 9% | | Transportation and Warehousing | 52,698 | 10% | 55,784 | 10% | | Retail Trade | 50,207 | 9% | 41,132 | 8% | | Finance and Insurance | 24,779 | 5% | 26,557 | 5% | | Accommodation and Food Services | 24,752 | 5% | 12,368 | 2% | | Information | 21,858 | 4% | 22,265 | 4% | | Manufacturing | 21,536 | 4% | 32,140 | 6% | | Arts, Entertainment, and Recreation | 19,129 | 3% | 19,861 | 4% | | Professional, Scientific, and Technical Services | 11,990 | 2% | 10,845 | 2% | | Public Administration | 2,036 | 0% | 2,186 | 0% | | Other | 87,697 | 16% | 81,705 | 15% | | **Total Commercial & Industrial Loans** | **$547,318** | **100%** | **$542,474** | **100%** | [Non-Owner Occupied Commercial Real Estate Office Analysis](index=13&type=section&id=Non-Owner%20Occupied%20Commercial%20Real%20Estate%20Office%20Analysis) As of June 30, 2025, non-owner occupied commercial real estate office loans totaled $274.7 million, with Class A and B properties accounting for a significant portion; the portfolio's weighted average loan-to-value ratio was 64%, and the debt service coverage ratio was 1.34x | Category | Jun 30, 2025 (Thousands) | Average Loan Size (Thousands) | Loan-to-Value Ratio | Debt Service Coverage Ratio | | :--- | :--- | :--- | :--- | :--- | | Class A | $102,923 | $9,406 | 58% | 1.76x | | Class B | 74,536 | 3,405 | 55% | 1.34x | | Class C | 14,757 | 1,845 | 54% | 1.25x | | Medical Office | 53,102 | 7,586 | 69% | 1.40x | | Lab Space | 29,339 | 23,480 | 91% | 0.38x | | **Total Office Loans** | **$274,657** | **$5,864** | **64%** | **1.34x** | - As of June 30, 2025, approximately **66%** of commercial real estate office loans were secured by suburban income-producing properties, and approximately **49%** of office loans are scheduled to mature by June 30, 2027[41](index=41&type=chunk) [Deposit and Liquidity Analysis](index=14&type=section&id=Deposit%20and%20Liquidity%20Analysis) This section provides an in-depth analysis of the company's deposit composition, uninsured deposits, and contingent liquidity sources [Deposit Composition](index=14&type=section&id=Deposit%20Composition) As of June 30, 2025, the company's total deposits amounted to $5.045 billion, with in-market deposits constituting the vast majority, while wholesale brokered certificates of deposit significantly decreased; both noninterest-bearing and interest-bearing demand deposits experienced growth | Deposit Type | Jun 30, 2025 (Thousands) | Mar 31, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Noninterest-Bearing Demand Deposits | $646,584 | $625,590 | $661,776 | $665,706 | $645,661 | | Interest-Bearing Demand Deposits (In-Market) | 668,483 | 654,599 | 592,904 | 596,319 | 532,316 | | NOW Accounts | 680,246 | 686,666 | 692,812 | 685,531 | 722,797 | | Money Market Accounts | 1,147,792 | 1,202,703 | 1,154,745 | 1,146,426 | 1,086,088 | | Savings Accounts | 693,055 | 630,413 | 523,915 | 490,285 | 485,208 | | Certificates of Deposit (In-Market) | 1,207,255 | 1,213,382 | 1,192,110 | 1,207,626 | 1,164,839 | | **In-Market Deposits** | **5,043,415** | **5,013,353** | **4,818,262** | **4,791,893** | **4,636,909** | | Wholesale Brokered Certificates of Deposit | 1,833 | 27,228 | 297,538 | 379,997 | 339,217 | | **Total Deposits** | **$5,045,248** | **$5,040,581** **$5,115,800** | **$5,171,890** | **$4,976,126** | [Uninsured Deposits](index=14&type=section&id=Uninsured%20Deposits) As of June 30, 2025, total uninsured deposits were $1.366 billion, representing 27% of total deposits; after deducting related party deposits and fully collateralized preferred deposits, uninsured deposits amounted to $1.082 billion, or 21% of total deposits | Metric | Jun 30, 2025 (Thousands) | % of Total Deposits | Dec 31, 2024 (Thousands) | % of Total Deposits | | :--- | :--- | :--- | :--- | :--- | | Uninsured Deposits | $1,365,590 | 27% | $1,363,689 | 27% | | Less: Related Party Deposits | 76,352 | 1% | 94,740 | 2% | | Less: Fully Collateralized Preferred Deposits | 207,695 | 5% | 197,638 | 4% | | **Uninsured Deposits, Net of Deductions** | **$1,081,543** | **21%** | **$1,071,311** | **21%** | [Contingent Liquidity](index=14&type=section&id=Contingent%20Liquidity) As of June 30, 2025, the company's total contingent liquidity was $1.783 billion, primarily sourced from the Federal Home Loan Bank, Federal Reserve Bank, available cash, and unpledged securities; contingent liquidity covered uninsured deposits by 130.6% | Source | Jun 30, 2025 (Thousands) | Dec 31, 2024 (Thousands) | | :--- | :--- | :--- | | Federal Home Loan Bank | $987,119 | $752,951 | | Federal Reserve Bank | 111,454 | 70,286 | | Available Cash Liquidity | 87,662 | 36,647 | | Unpledged Securities | 596,906 | 597,771 | | **Total Contingent Liquidity** | **$1,783,141** | **$1,457,655** | | Contingent Liquidity as % of Uninsured Deposits | 130.6% | 106.9% | | Contingent Liquidity as % of Uninsured Deposits, Net of Deductions | 164.9% | 136.1% | [Detailed Credit & Asset Quality Data](index=15&type=section&id=Detailed%20Credit%20%26%20Asset%20Quality) This section provides detailed credit and asset quality data, including asset quality ratios, nonperforming assets, past due loans, and activity in allowances for credit losses and net charge-offs [Asset Quality Ratios](index=15&type=section&id=Asset%20Quality%20Ratios) As of June 30, 2025, the ratio of nonperforming assets to total assets and nonaccrual loans to total loans both increased, while the allowance for credit losses on loans to nonaccrual loans ratio decreased | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Nonperforming Assets as % of Total Assets | 0.39% | 0.33% | 0.34% | 0.44% | 0.43% | | Nonaccrual Loans as % of Total Loans | 0.51% | 0.42% | 0.45% | 0.56% | 0.54% | | Past Due Loans as % of Total Loans | 0.27% | 0.20% | 0.23% | 0.37% | 0.21% | | ACL on Loans as % of Nonaccrual Loans | 157.27% | 189.85% | 180.03% | 136.89% | 139.04% | | ACL on Loans as % of Total Loans | 0.80% | 0.81% | 0.82% | 0.77% | 0.75% | [Nonperforming Assets](index=15&type=section&id=Nonperforming%20Assets) As of June 30, 2025, total nonperforming assets amounted to $26.108 million, with increases in both commercial nonaccrual loans and residential real estate nonaccrual loans | Asset Type | Jun 30, 2025 (Thousands) | Mar 31, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Real Estate | $4,276 | $7,605 | $10,053 | $18,259 | $18,390 | | Commercial & Industrial | 9,711 | 1,140 | 515 | 616 | 642 | | **Total Commercial Nonaccrual Loans** | **13,987** | **8,745** | **10,568** | **18,875** | **19,032** | | Residential Real Estate | 10,614 | 11,102 | 10,767 | 10,517 | 9,744 | | Home Equity | 1,507 | 1,779 | 1,972 | 1,750 | 1,703 | | **Total Nonaccrual Loans** | **$26,108** | **$21,626** | **$23,307** | **$31,142** | **$30,479** | | **Total Nonperforming Assets** | **$26,108** | **$21,626** | **$23,307** | **$31,142** | **$31,162** | [Past Due Loans](index=15&type=section&id=Past%20Due%20Loans) As of June 30, 2025, total past due loans amounted to $14.035 million, a significant quarter-over-quarter increase, with residential real estate past due loans accounting for the largest proportion | Loan Type | Jun 30, 2025 (Thousands) | Mar 31, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Real Estate | $— | $— | $— | $10,476 | $— | | Commercial & Industrial | 1,799 | 1,146 | 900 | 3 | 2 | | **Total Commercial Past Due Loans** | **1,799** | **1,146** | **900** | **10,479** | **2** | | Residential Real Estate | 9,772 | 6,439 | 7,741 | 6,947 | 8,534 | | Home Equity | 2,430 | 2,578 | 2,947 | 2,800 | 3,324 | | Other Consumer | 34 | 32 | 394 | 75 | 20 | | **Total Consumer Past Due Loans** | **2,464** | **2,610** | **3,341** | **2,875** | **3,344** | | **Total Past Due Loans** | **$14,035** | **$10,195** | **$11,982** | **$20,301** | **$11,880** | [Nonaccrual Loan Activity](index=16&type=section&id=Nonaccrual%20Loan%20Activity) In Q2 2025, the balance of nonaccrual loans increased, with $10.454 million in new nonaccrual loans added, while some loans were returned to accrual status or charged off | Metric | Q2 2025 (Thousands) | Q1 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beginning Balance | $21,626 | $23,307 | $31,142 | $30,479 | $30,710 | | Additions to Nonaccrual | 10,454 | 2,142 | 5,417 | 1,880 | 556 | | Returned to Accrual | (1,493) | (4) | (9) | (268) | (369) | | Charge-offs | (667) | (2,522) | (2,231) | (59) | (53) | | Payments, Settlements, and Other | (3,812) | (1,297) | (11,012) | (890) | (365) | | **Ending Balance** | **$26,108** | **$21,626** | **$23,307** | **$31,142** | **$30,479** | [Allowance for Credit Losses on Loans Activity](index=16&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Loans%20Activity) In Q2 2025, the allowance for credit losses on loans remained stable, with a current period provision of $650 thousand, charge-offs of $667 thousand, and recoveries of $20 thousand | Metric | Q2 2025 (Thousands) | Q1 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beginning Balance | $41,056 | $41,960 | $42,630 | $42,378 | $41,905 | | Provision for Credit Losses | 650 | 1,400 | 1,200 | 300 | 500 | | Charge-offs | (667) | (2,522) | (2,231) | (59) | (53) | | Recoveries | 20 | 218 | 361 | 11 | 26 | | **Ending Balance** | **$41,059** | **$41,056** | **$41,960** | **$42,630** | **$42,378** | [Allowance for Credit Losses on Unfunded Commitments Activity](index=16&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Unfunded%20Commitments%20Activity) In Q2 2025, the allowance for credit losses on unfunded commitments slightly decreased, with a $50 thousand reduction in the current period's provision | Metric | Q2 2025 (Thousands) | Q1 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beginning Balance | $1,240 | $1,440 | $1,640 | $1,740 | $1,740 | | Provision for Credit Losses | (50) | (200) | (200) | (100) | — | | **Ending Balance** | **$1,190** | **$1,240** | **$1,440** | **$1,640** | **$1,740** | [Net Loan Charge-Offs (Recoveries)](index=16&type=section&id=Net%20Loan%20Charge-Offs%20(Recoveries)) In Q2 2025, net loan charge-offs amounted to $647 thousand, a significant quarter-over-quarter decrease, with commercial loan net charge-offs at $581 thousand and consumer loan net charge-offs at $66 thousand | Loan Type | Q2 2025 (Thousands) | Q1 2025 (Thousands) | Dec 31, 2024 (Thousands) | Sep 30, 2024 (Thousands) | Jun 30, 2024 (Thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Real Estate | $274 | $2,250 | $1,961 | $— | $— | | Commercial & Industrial | 307 | 3 | 181 | 2 | 4 | | **Total Commercial** | **581** | **2,253** | **2,142** | **2** | **4** | | Residential Real Estate | — | — | (160) | — | — | | Home Equity | (1) | (1) | (189) | (1) | (6) | | Other Consumer | 67 | 52 | 77 | 47 | 29 | | **Total Consumer** | **66** | **51** | **(112)** | **46** | **23** | | **Total** | **$647** | **$2,304** | **$1,870** | **$48** | **$27** | | Net Charge-offs as % of Average Loans (Annualized) | 0.05% | 0.18% | 0.14% | 0.00% | 0.00% | [Consolidated Average Balance Sheets (FTE Basis)](index=17&type=section&id=Consolidated%20Average%20Balance%20Sheets%20(FTE%20Basis)) This section presents the company's consolidated average balance sheets on a fully tax-equivalent (FTE) basis, providing insights into average balances, interest income/expense, and yields/rates [Three Months Ended June 30, 2025 vs. March 31, 2025](index=17&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20vs.%20March%2031%2C%202025) This section provides average asset, liability, interest income/expense, and yield/rate information for the three months ended June 30, 2025, compared to the three months ended March 31, 2025, all presented on a fully tax-equivalent (FTE) basis | | Average Balance (Thousands) | Interest (Thousands) | Yield/Rate | Average Balance (Thousands) | Interest (Thousands) | Yield/Rate | Change (Thousands) | Change (Thousands) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Assets:** | **Jun 30, 2025** | | | **Mar 31, 2025** | | | **Average Balance** | **Interest** | **Yield/Rate** | | Total Earning Assets | $6,354,407 | $79,063 | 4.99% | $6,488,725 | $79,668 | 4.98% | ($134,318) | ($605) | 0.01% | | **Liabilities and Shareholders' Equity:** | | | | | | | | | | | Total Interest-Bearing Liabilities | $5,362,385 | $41,661 | 3.12% | $5,479,407 | $43,041 | 3.19% | ($117,022) | ($1,380) | (0.07%) | | **Net Interest Income (FTE)** | | **$37,402** | | | **$36,627** | | | **$775** | | | **Net Interest Margin** | | | **2.36%** | | | **2.29%** | | | **0.07%** | [Six Months Ended June 30, 2025 vs. June 30, 2024](index=18&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20vs.%20June%2030%2C%202024) This section provides average asset, liability, interest income/expense, and yield/rate information for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, all presented on a fully tax-equivalent (FTE) basis | | Average Balance (Thousands) | Interest (Thousands) | Yield/Rate | Average Balance (Thousands) | Interest (Thousands) | Yield/Rate | Change (Thousands) | Change (Thousands) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Assets:** | **Jun 30, 2025** | | | **Jun 30, 2024** | | | **Average Balance** | **Interest** | **Yield/Rate** | | Total Earning Assets | $6,421,195 | $158,731 | 4.98% | $6,971,856 | $171,702 | 4.95% | ($550,661) | ($12,971) | 0.03% | | **Liabilities and Shareholders' Equity:** | | | | | | | | | | | Total Interest-Bearing Liabilities | $5,420,572 | $84,702 | 3.15% | $5,942,266 | $108,003 | 3.66% | ($521,694) | ($23,301) | (0.51%) | | **Net Interest Income (FTE)** | | **$74,029** | | | **$63,699** | | | **$10,330** | | | **Net Interest Margin** | | | **2.32%** | | | **1.84%** | | | **0.48%** | [Supplemental Non-GAAP Financial Measures](index=19&type=section&id=Supplemental%20Non-GAAP%20Financial%20Measures) This section provides reconciliations and calculations for various non-GAAP financial measures, offering additional insights into the company's underlying financial performance [Adjusted Noninterest Income, Expense, and Net Income](index=19&type=section&id=Adjusted%20Noninterest%20Income%2C%20Expense%2C%20and%20Net%20Income) This section provides calculations for non-GAAP adjusted noninterest income, noninterest expense, pre-tax income, income tax expense, effective tax rate, and net income, to remove the impact of one-time or non-recurring items and offer a clearer view of operating performance | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Noninterest Income (Thousands) | $17,078 | $22,643 | ($77,892) | $16,272 | $16,660 | | Adjusted Noninterest Income (Non-GAAP) (Thousands) | $17,078 | $15,649 | $16,043 | $16,272 | $15,672 | | Reported Noninterest Expense (Thousands) | $36,530 | $42,196 | $34,292 | $34,504 | $33,910 | | Adjusted Noninterest Expense (Non-GAAP) (Thousands) | $36,530 | $35,760 | $34,292 | $34,504 | $33,910 | | Reported Pre-Tax Income (Thousands) | $17,133 | $15,669 | ($80,248) | $13,830 | $13,835 | | Adjusted Pre-Tax Income (Non-GAAP) (Thousands) | $17,133 | $15,111 | $13,687 | $13,830 | $12,847 | | Reported Income Tax Expense (Thousands) | $3,888 | $3,490 | ($19,457) | $2,849 | $3,020 | | Adjusted Income Tax Expense (Non-GAAP) (Thousands) | $3,888 | $3,349 | $3,242 | $2,849 | $2,771 | | Reported Effective Tax Rate | 22.7% | 22.3% | 24.2% | 20.6% | 21.8% | | Adjusted Effective Tax Rate (Non-GAAP) | 22.7% | 22.2% | 23.7% | 20.6% | 21.6% | | Reported Net Income (Thousands) | $13,245 | $12,179 | ($60,791) | $10,981 | $10,815 | | Adjusted Net Income (Non-GAAP) (Thousands) | $13,245 | $11,762 | $10,445 | $10,981 | $10,076 | [Adjusted Diluted Earnings per Common Share & Efficiency Ratio](index=20&type=section&id=Adjusted%20Diluted%20Earnings%20per%20Common%20Share%20%26%20Efficiency%20Ratio) This section provides calculations for non-GAAP adjusted diluted earnings per common share and efficiency ratio, offering more comparable performance measures | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Diluted EPS | $0.68 | $0.63 | ($3.46) | $0.64 | $0.63 | | Adjusted Diluted EPS (Non-GAAP) | $0.68 | $0.61 | $0.59 | $0.64 | $0.59 | | Reported Efficiency Ratio | 67.3% | 71.4% | (76.3%) | 71.1% | 70.3% | | Adjusted Efficiency Ratio (Non-GAAP) | 67.3% | 68.7% | 70.0% | 71.1% | 71.8% | [Adjusted Return on Average Assets & Tangible Assets](index=20&type=section&id=Adjusted%20Return%20on%20Average%20Assets%20%26%20Tangible%20Assets) This section provides calculations for non-GAAP adjusted return on average assets and return on average tangible assets, to better reflect the profitability of the company's core operations | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Return on Average Assets | 0.80% | 0.73% | (3.45%) | 0.60% | 0.60% | | Adjusted Return on Average Assets (Non-GAAP) | 0.80% | 0.71% | 0.59% | 0.60% | 0.56% | | Return on Average Tangible Assets (Non-GAAP) | 0.81% | 0.71% | 0.60% | 0.61% | 0.57% | [Adjusted Return on Average Equity & Tangible Equity](index=21&type=section&id=Adjusted%20Return%20on%20Average%20Equity%20%26%20Tangible%20Equity) This section provides calculations for non-GAAP adjusted return on average equity and return on average tangible equity, to assess the company's shareholder return capability after excluding the impact of specific items | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Return on Average Equity | 10.14% | 9.63% | (48.25%) | 8.99% | 9.43% | | Adjusted Return on Average Equity (Non-GAAP) | 10.14% | 9.30% | 8.29% | 8.99% | 8.79% | | Return on Average Tangible Equity (Non-GAAP) | 11.62% | 10.69% | 9.57% | 10.43% | 10.29% | [Tangible Book Value per Share & Tangible Equity to Tangible Assets](index=22&type=section&id=Tangible%20Book%20Value%20per%20Share%20%26%20Tangible%20Equity%20to%20Tangible%20Assets) This section provides calculations for tangible book value per share and tangible equity to tangible assets ratio, as these non-GAAP metrics help investors evaluate the company's true value and capital structure after excluding the impact of intangible assets | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Tangible Book Value per Share (Non-GAAP) | $23.91 | $23.61 | $22.46 | $25.51 | $23.67 | | Tangible Equity to Tangible Assets (Non-GAAP) | 6.90% | 6.98% | 6.31% | 6.15% | 5.67% |

Core Viewpoint - Washington Trust Bancorp, Inc. reported a positive performance in the second quarter of 2025, with net income increasing to $13.2 million, reflecting growth in net interest income, wealth management revenue, and mortgage banking revenue, while maintaining a well-capitalized position [1][2]. Financial Performance - Net income for Q2 2025 was $13.2 million, or $0.68 per diluted share, up from $12.2 million, or $0.63 per diluted share in Q1 2025 [1]. - Adjusted net income for Q1 2025 was $11.8 million, or $0.61 per diluted share [1]. - Net interest income for Q2 2025 was $37.2 million, an increase of $763 thousand, or 2%, from Q1 2025 [3]. - Noninterest income decreased to $17.1 million in Q2 2025, down by $5.6 million, or 24.6%, from Q1 2025 [3]. - Noninterest expense totaled $36.5 million in Q2 2025, down by $5.7 million, or 13%, from Q1 2025 [4]. Income Tax and Provision for Credit Losses - Income tax expense for Q2 2025 was $3.9 million, with an effective tax rate of 22.7%, compared to $3.5 million and 22.3% in Q1 2025 [5]. - A provision for credit losses of $600 thousand was recognized in Q2 2025, down from $1.2 million in Q1 2025 [6][13]. Wealth Management and Mortgage Banking - Wealth management revenues increased by 2% in Q2 2025, totaling $10.1 million [6]. - Mortgage banking revenues rose by 32% in Q2 2025, amounting to $3.0 million, reflecting a higher volume of loans sold to the secondary market [6][30]. Loans and Deposits - Total loans reached $5.1 billion at the end of Q2 2025, up by 1% from Q1 2025 [8]. - In-market deposits amounted to $5.0 billion, also up by 1% from Q1 2025 [8]. Asset Quality - Nonaccrual loans were $26.1 million, or 0.51% of total loans, at the end of Q2 2025, compared to $21.6 million, or 0.42% in Q1 2025 [10]. - Past due loans increased to $14.0 million, or 0.27% of total loans, from $10.2 million, or 0.20% in Q1 2025 [11]. Capital and Dividends - Total shareholders' equity was $527.5 million at the end of Q2 2025, up by $5.8 million, or 1%, from Q1 2025 [14]. - A quarterly dividend of 56 cents per share was declared for Q2 2025 [15]. Conference Call - Washington Trust will host a conference call on July 22, 2025, to discuss its second quarter results and outlook [16].