(Exact name of registrant as specified in its charter) (Mark One) Commission file number: 001-32991 WASHINGTON TRUST BANCORP, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 23 Broad Street, Westerly, Rhode Island 02891 Rhode Island 05-0404671 | Large accelerated filer ☐ | Accelerated filer ☒ | | --- | --- | | Non-accelerated filer ☐ | Smaller reporting company ☐ | | | Emergi ...

Washington Trust Bancorp (WASH) Q2 2025 Earnings Call July 22, 2025 08:30 AM ET Company ParticipantsSharon Walsh - SVP, Director - Marketing Strategy & PlanningEdward Handy - Chairman & CEODamon Delmonte - Managing DirectorRonald Ohsberg - SEVP, CFO & TreasurerMark Fitzgibbon - MD & Head - FSG ResearchMary E. Noons - President & COOWilliam Wray - SEVP & Chief Risk OfficerConference Call ParticipantsLaurie Hunsicker - Senior AnalystOperatorHello, everyone, and thank you for your patience. Today's call will b ...

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]

Washington Trust Bancorp (WASH) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +7.94%. A quarter ago, it was expected that this holding company for The Washington Trust Co. would post earnings of $0.62 per share when it actually produced earnings of $0.61, delivering a surprise of -1 ...

Exhibit 99.1 "Washington Trust's second quarter results reflect our diversified business model performing positively. We realized growth in net interest income, wealth management revenue, and mortgage banking revenue, and we remained well-capitalized. We are pleased with these results," said Washington Trust Chairman and Chief Executive Officer Edward O. Handy III. "As we reach our milestone 225th birthday next month, we remain focused on providing exceptional full-service banking to our customers for years ...

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].

The market expects Washington Trust Bancorp (WASH) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 21, might help the stock move higher if these key ...

Company Overview - Washington Trust Bancorp, Inc. is the publicly-owned holding company of The Washington Trust Company, with assets totaling $6.6 billion as of March 31, 2025 [2] - Founded in 1800, it is recognized as the oldest community bank in the United States and the largest state-chartered bank headquartered in Rhode Island [2] - The bank offers a variety of services including commercial banking, mortgage banking, personal banking, and wealth management across Rhode Island, Connecticut, and Massachusetts [2] Upcoming Earnings Release - The company will release its second quarter 2025 earnings on July 21, 2025, after market closes [1] - A conference call with the Corporation's executives is scheduled for July 22, 2025, at 8:30 a.m. ET [1] - Participants can access the call via a toll-free number or through a webcast on the company's website [1]

Core Viewpoint - Investors in the Banks - Northeast sector should consider Webster Financial (WBS) and Washington Trust Bancorp (WASH) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Webster Financial has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Washington Trust Bancorp, which has a Zacks Rank of 3 (Hold) [3] - WBS has likely experienced a more significant improvement in its earnings outlook than WASH recently [3][7] Group 2: Valuation Metrics - WBS has a forward P/E ratio of 9.57, while WASH has a forward P/E of 10.86 [5] - The PEG ratio for WBS is 0.71, compared to WASH's PEG ratio of 0.89, indicating WBS may offer better value considering expected earnings growth [5] - WBS has a P/B ratio of 1.03, slightly lower than WASH's P/B ratio of 1.04, suggesting WBS is more favorably valued relative to its book value [6] Group 3: Value Grades - Based on the aforementioned valuation metrics, WBS has earned a Value grade of B, while WASH has a Value grade of C [6]