Washington Trust Bancorp (WASH) investor relations material

Executive summary

• Q3 net income was $19.4M, up 21% QoQ and 79% YoY; diluted EPS was $1.01, up $0.18 QoQ and $0.45 YoY.

• Results reflected higher net interest income, margin expansion, improved operating efficiency and lower nonaccrual loans following a CRE office loan restructuring.

• 9M net income rose 32% to $48.0M; adjusted net income was also $48.0M, up 34% excluding 2025 branch sale-leaseback gains and a pension settlement charge.

Financial highlights

• Q3 net interest income rose 7% QoQ and 15% YoY to $44.7M; lower funding costs and liability balances outweighed lower asset yields and balances.

• Noninterest income rose 9% QoQ and 15% YoY to $20.3M, including a $954K BOLI gain and $924K higher loan-related derivative income.

• Noninterest expense was $38.8M, up 0.5% QoQ and 9% YoY; the effective tax rate was 20.4%.

• Q3 provision for credit losses was $1.8M, versus $6.8M a year earlier; 9M provision was $7.4M versus $8.6M.

• 9M net interest income increased 13% to $127.0M; adjusted 9M noninterest income grew 12%, excluding the 2025 property-sale gain.

Outlook and guidance

• Q4 NIM guidance is 2.85%-2.90%, incorporating the September rate hike; each additional 25 bps hike is estimated to add 1-2 bps to the run rate.

• Q4 expenses are expected to increase ~$1.5M for branch, marketing, technology and personnel investment; the $750K annual foundation contribution is incremental.

• FY 2026 effective tax-rate guidance is ~21.5%.

• Annualized loan growth outlook is 5% for the total portfolio and 10% for commercial, with a 2%-3% quarterly commercial growth target; deposit growth is intended to track loans.

• Unchanged-rate simulations showed net interest income trending higher over 12 and 24 months, within established risk tolerances.