Washington Trust Bancorp (WASH) investor relations material

Executive summary

• Net income for Q3 2025 was $10.8 million ($0.56 per share), flat year-over-year but down from $13.2 million in Q2, impacted by elevated credit loss provisions from two resolved exposures.

• Core business lines showed strong performance, with increases in net interest margin, wealth management, mortgage revenue, and in-market deposit growth.

• Completed acquisition of $195 million in AUM from Lighthouse Financial and expanded the wealth management team.

• Hired a new Chief Commercial Banking Officer to drive commercial relationship growth.

• Completed a sales-leaseback of five branches, recognized a $7.0 million gain, and settled its qualified pension plan, incurring a $6.4 million non-cash charge.

Financial highlights

• Net interest income was $38.8 million, up 4% from Q2 and 20% year-over-year; noninterest income made up 31% of revenue, up 3% from Q2 and 8% year-over-year.

• Mortgage banking revenues rose 15% sequentially and 22% year-over-year to $3.5 million.

• Provision for credit losses surged to $7.0 million in Q3, mainly due to $11.3 million in charge-offs on two commercial loan relationships.

• Noninterest expense was $35.7 million, down 2% sequentially but up 4% year-over-year, impacted by pension settlement and higher salaries.

• Book value per share increased to $27.98 from $27.36 in Q2.

Outlook and guidance

• Expecting margin expansion of approximately 5 basis points in Q4 and full-year 2025 effective tax rate of 22.5%.

• Loan growth guidance remains at low single digits for the year, with a healthy pipeline.

• Noninterest expense expected to be around $37 million in Q4, in line with original guidance.

• No additional share repurchases planned for the remainder of the year; capital will be preserved to support growth.

• Management expects continued focus on core deposit growth, prudent credit risk management, and leveraging digital and in-person banking.