Core Insights - Washington Trust Bancorp (WASH) is expected to report quarterly earnings of $0.46 per share, reflecting a decline of 28.1% year-over-year, while revenues are forecasted to increase by 13.1% to $54.91 million [1] - There has been no revision in the consensus EPS estimate for the quarter over the past 30 days, indicating stability in analysts' projections [1] Earnings Estimates and Metrics - Analysts predict an 'Efficiency Ratio' of 67.0%, down from 71.1% in the same quarter last year [4] - 'Total noninterest income' is expected to reach $16.57 million, slightly up from $16.27 million a year ago [4] - 'Net Interest Income' is forecasted at $38.36 million, compared to $32.26 million reported in the same quarter last year [4] Market Performance - Shares of Washington Trust have decreased by 6.6% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [5] - With a Zacks Rank of 4 (Sell), WASH is anticipated to underperform the overall market in the near future [5]

Core Viewpoint - Washington Trust Bancorp (WASH) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended September 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on October 20, with a consensus EPS estimate of $0.46 per share, reflecting a year-over-year decrease of 28.1%. Revenues are projected to be $54.91 million, representing a 13.2% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Washington Trust is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. The company currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Washington Trust exceeded the consensus EPS estimate of $0.63 by delivering earnings of $0.68, resulting in a surprise of +7.94%. Over the past four quarters, the company has beaten consensus EPS estimates three times [13][14]. Industry Comparison - In the Zacks Banks - Northeast industry, Citizens & Northern (CZNC) is expected to report earnings of $0.51 per share for the same quarter, indicating a year-over-year increase of 24.4%. However, its consensus EPS estimate has been revised down by 47.2% over the last 30 days, leading to an Earnings ESP of -3.92% [18][19].

Core Points - Washington Trust Bancorp, Inc. will release its third quarter 2025 earnings on October 20, 2025, after market closes [1] - A conference call with the Corporation's executives is scheduled for October 21, 2025, at 8:30 a.m. ET [1] Company Overview - Washington Trust Bancorp, Inc. is the publicly-owned holding company of The Washington Trust Company, with assets totaling $6.7 billion as of June 30, 2025 [2] - Founded in 1800, Washington Trust 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] - Washington Trust celebrated its 225th anniversary in 2025, highlighting its commitment to improving financial lives in New England [2]

Core Viewpoint - Washington Trust Bancorp (WASH) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The Zacks rating upgrade for Washington Trust reflects a positive outlook on its earnings, which could positively impact its stock price [3][5]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements [4]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling activities [4]. Performance Metrics - For the fiscal year ending December 2025, Washington Trust is expected to earn $2.69 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 3.2% over the past three months [8]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [7]. Positioning in the Market - The upgrade to Zacks Rank 2 places Washington Trust in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for higher stock movement in the near term [10].

Core Insights - Washington Trust's CTO Daryl Clark has been recognized in Forbes' "Top 500 CTOs to Watch in America" list, highlighting his role in driving innovation and digital transformation within the company [1][2][3] Company Achievements - Daryl Clark is the only CTO from a Rhode Island-based company on the list, emphasizing Washington Trust's leadership in technology and financial services [2] - Since becoming CTO in January 2021, Clark has led a comprehensive digital transformation at Washington Trust, which has over $7 billion in assets [4][6] Digital Transformation Initiatives - Clark's initiatives include: - Cloud Migration: Transitioned to a multi-year cloud strategy, eliminating all on-premise data centers [7] - Mobile Device Management: Implemented a modern system that improved security for employee devices [7] - Cybersecurity Leadership: Collaborated with the Chief Information Security Officer to enhance the bank's cybersecurity posture [7] - Compliance Excellence: Achieved five consecutive years of clean IT audits through enhanced protocols [7] - Virtualization: Co-authored an article showcasing how VMware integration reduced computing footprint by over 80% and expanded server deployments fivefold [7] Community Engagement - Clark is actively involved in mentoring future technology leaders through the Computer Science for Rhode Island (CS4RI) program, contributing to the development of tech talent in the region [5]

[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]