Washington Trust Bancorp (WASH) investor relations material

Executive summary

• Q3 net income was $19.4M, up 21% QoQ and $8.5M YoY; diluted EPS was $1.01, up $0.18 QoQ and $0.45 YoY.

• Results featured NII and margin growth, improved operating efficiency and asset quality.

Financial highlights

• Net interest income rose 7% QoQ to $44.7M and 15% YoY; NIM expanded 11 bps QoQ to 2.84%, up 44 bps YoY.

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

• Noninterest expense increased 0.5% QoQ to $38.8M; the efficiency ratio improved to 59.7% from 63.8% in Q2.

• 9M net income was $48.0M, up 32.2% YoY; diluted EPS was $2.50 versus $1.88.

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% overall and 10% for commercial loans; commercial growth target is 2%-3% quarterly.

• Deposit growth is intended to track loan growth; wholesale funding may support appropriate loan expansion.