Washington Trust Bancorp (WASH) investor relations material

Executive summary

• Achieved strong Q2 results with net income of $16 million ($0.83 per share), up $3.4 million from Q1 and $2.7 million year-over-year, driven by disciplined execution and institutional banking initiatives.

• Strong loan and deposit growth, with commercial and industrial lending as a key driver.

• Opened new branches and enhanced digital banking solutions, expanding presence in key markets and improving customer experience.

• Welcomed a new board member with expertise in digital innovation, AI, and cybersecurity.

• Wealth management and mortgage banking revenues both posted solid increases.

Financial highlights

• Net interest income rose to $41.8 million, up 3% from Q1 and 12% year-over-year; net interest margin improved to 2.73%.

• Non-interest income grew by $1.4 million (8%) from Q1 and 9% year-over-year, led by wealth management (+5%) and mortgage banking (+14%).

• Pre-provision pretax net revenue increased 9% from Q1 and 23% year-over-year.

• Noninterest expense rose 2% sequentially and 6% year-over-year, mainly due to higher salaries and benefits.

• Provision for credit losses was $1.6 million, down from $4.0 million in Q1.

Outlook and guidance

• Expect mid-single-digit overall loan growth for the year, led by institutional banking and C&I.

• Anticipate Q3 margin at 2.75% and Q4 at 2.80%.

• Third quarter expenses expected to rise by $1 million, just under $39 million.

• C&I expected to grow faster than other loan segments over the next 18 months.

• Management expressed confidence in sustainable, profitable growth for the remainder of 2026, citing strong capital and business momentum.