WESTERLY, R.I., April 20, 2026 /PRNewswire/ -- Washington Trust Bancorp, Inc. (NASDAQ:WASH, ", Washington Trust", or the ", Corporation", )), today reported first quarter 2026 net income of $12.6 million, or $0.66 per diluted share, compared to $16.0 million, or $0.83 per diluted share, for the preceding quarter. Compared to the first quarter of 2025, net income was up by $421 thousand, or $0.03 per diluted share, on a GAAP basis, and was up by $838 thousand, or $0.05 per diluted share, on an adjusted (non-GAAP) basis.
"Washington Trust delivered solid first quarter 2026 results, led by an increase in net interest margin, which reflects the strength of our core banking business and continued benefits from the December 2024 balance sheet repositioning transactions," said Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III. "Our balance sheet remains strong, and as we move through 2026, Washington Trust is focused on delivering long‑term shareholder value while providing customers with personalized service, local decision‑making, and a comprehensive suite of financial products and services."
FIRST QUARTER HIGHLIGHTS (Q1 2026 vs. Q4 2025, unless otherwise noted):
- Returns on average equity and average assets were 9.23% and 0.78% for the first quarter.
- Net interest margin ("NIM") was 2.63%, up by 7 basis points and up by 34 basis points from the first quarter of 2025.
- The provision for credit losses was $4.0 million for the first quarter.
- Wealth management revenues decreased by 2% and were up by 8% from the first quarter of 2025.
- Mortgage banking revenues were seasonally down by 6%, and were up by 32% from the first quarter of 2025.
- Loan balances were down by 2% from both December 31, 2025 and March 31, 2025.
- In-market deposits (total deposits less wholesale brokered deposits) were down by 2% from December 31, 2025 and up by 3% from March 31, 2025.
- Capital ratios remained strong, with a total risk-based capital ratio of 13.38% at March 31, 2026.
RESULTS OF OPERATIONS (Q1 2026 vs. Q4 2025, unless otherwise noted):
Net Interest Income
Net interest income was down by $223 thousand, or 1%, and as noted above NIM was up by 7 basis points. Compared to the first quarter of 2025, net interest income was up by $4.1 million, or 11%, and NIM was up by 34 basis points.
- Commercial loan prepayment fee income was $116 thousand (a 1 basis point benefit to NIM), compared to $516 thousand (a 3 basis point benefit to NIM) in the prior quarter.
- Average interest-earning assets decreased by $88 million, and the yield was down by 7 basis points.
- Average interest-bearing liabilities decreased by $49 million, and the rate was down by 19 basis points.
Noninterest Income
Noninterest income was down by $1.2 million, or 6%. Adjusted noninterest income (non-GAAP) was up by $1.7 million, or 11%, from the first quarter of 2025.
- Wealth management revenues decreased by $205 thousand, or 2%, and average assets under administration ("AUA") decreased by 1%. Compared to the first quarter of 2025, wealth management revenues increased by $756 thousand, or 8%, and average AUA increased by 10%.
- Mortgage banking revenues were down by $205 thousand, or 6%, largely driven by a seasonal decline in loan sales volume. Mortgage banking revenues increased by 32% compared to the first quarter of 2025.
- Loan related derivative income totaled $227 thousand, down by $854 thousand, reflecting lower transaction volume.
Noninterest Expense
Noninterest expense was down by $218 thousand, or 1%. Adjusted noninterest expense (non-GAAP) was up by $2.0 million, or 6%, from the first quarter of 2025.
- Salaries and employee benefits expense increased by $693 thousand, or 3%, largely reflecting higher payroll taxes associated with the start of a new calendar year. Compared to the first quarter of 2025, salaries and employee benefits expense increased by $1.9 million, or 9%, reflecting staffing increases, including the addition of resources in our commercial banking and wealth management business lines.
- Other noninterest expenses were down by $1.2 million, or 31%, largely due to a $1.0 million contribution made by Washington Trust to its charitable foundation in the prior quarter.
Income Tax
Income tax expense was down by $1.2 million. The effective tax rate was 21.6%, compared to 22.7%. The Corporation expects its full-year 2026 effective tax rate to be approximately 21.5%.
FINANCIAL CONDITION (Mar 31, 2026 vs. Dec 31, 2025, unless otherwise noted):
Investment Securities
The securities portfolio totaled $912 million, down by $28 million, or 3%, and remained at 14% of total assets.
Loans
Total loans amounted to $5.0 billion, down by $120 million, or 2%.
- Commercial loans decreased by $95 million, or 3%.
- Residential real estate loans decreased by $21 million, or 1%.
- Consumer loans decreased by $3 million, or 1%.
Deposits and Borrowings
Total deposits amounted to $5.2 billion, and were down by $105 million, or 2%. Compared to March 31, 2025, deposits were up by $124 million, or 2%. In-market deposits, which exclude wholesale brokered deposits, decreased by $105 million, or 2%. Compared to March 31, 2025, in-market deposits were up by $151 million, or 3%.
FHLB advances totaled $576 million, and were down by $50 million, or 8%. Compared to March 31, 2025, FHLB advances were down by $274 million, or 32%.
Contingent liquidity amounted to $2.0 billion at March 31, 2026 and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.
Capital and Dividends
Total shareholders' equity was $546.8 million, up by $3.2 million, or 1%.
- The Board of Directors declared a quarterly dividend of 56 cents per share for the first quarter. The dividend was paid on April 10, 2026 to shareholders of record on April 1, 2026.
- Capital levels exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.38%, compared to 12.95%.
- Book value per share was $28.72, compared to $28.56.
ASSET QUALITY (Mar 31, 2026 vs. Dec 31, 2025, unless otherwise noted):
Nonaccrual loans were $40.4 million, or 0.81% of total loans, up from $12.9 million, or 0.25%. The increase was largely due to two commercial real estate office loans that were placed on nonaccrual status.
Past due loans were $16.4 million, or 0.33% of total loans, up from $11.4 million, or 0.22%, and included $7.0 million of commercial loans and $9.4 million of residential and consumer loans.
The provision for credit losses totaled $4.0 million in the first quarter, compared to $600 thousand in the prior quarter. The first quarter provision largely reflected an increase in specific reserves, partially offset by a decline in loan portfolio balances. The Corporation recorded $10 thousand of net charge-offs in the first quarter, compared to net recoveries of $160 thousand in the preceding quarter.
The allowance for credit losses ("ACL") on loans amounted to $41.1 million, or 0.82% of total loans, compared to $37.2 million, or 0.73%.
Conference Call
Washington Trust will host a conference call to discuss its first quarter results, business highlights, and outlook on April 21, 2026, at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 948138. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay Access Code 238648. The audio replay will be available through May 5, 2026. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, https://ir.washtrust.com, and will be available through June 30, 2026.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut, and Massachusetts. The Corporation's common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation's website at https://ir.washtrust.com.
Forward-Looking Statements
This press release contains statements that are "forward-looking statements." We may also make forward-looking statements in other documents we file with the U.S. Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors, or employees. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control. These risks, uncertainties, and other factors may cause our actual results, performance, or achievements to be materially different from the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include the following:
- changes in general business and economic conditions (including the impact of ongoing armed conflicts, tariffs, inflation, current or future U.S government shutdowns, and concerns about liquidity) on a national basis and in the local markets in which we operate;
- interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;
- changes in customer behavior due to political, business and economic conditions;
- changes in loan demand and collectability;
- the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments;
- ongoing volatility in national and international financial markets;
- reductions in the market value or outflows of wealth management AUA;
- decreases in the value of securities and other assets;
- increases in defaults and charge-off rates;
- changes in the size and nature of our competition;
- changes in, and evolving interpretations of, existing and future laws, rules and regulations;
- changes in accounting principles, policies and guidelines;
- operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest and future pandemics;
- regulatory, litigation and reputational risks; and
- changes in the assumptions used in making such forward-looking statements.
In addition, the factors described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. The forward-looking statements in this report were based on information, plans, and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average equity, and adjusted efficiency ratio, as well as measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited; Dollars in thousands) | |||||||||
Mar 31, 2026 vs. | Mar 31, 2026 vs. | ||||||||
Mar 31, | Dec 31, | Mar 31, | $ | % | $ | % | |||
Assets: | |||||||||
Cash and due from banks | $27,781 | $29,481 | $33,394 | (1,700) | (5.8 %) | ($5,613) | (16.8 %) | ||
Interest-earning deposits with correspondent banks | 60,090 | 61,375 | 82,804 | (1,285) | (2.1) | (22,714) | (27.4) | ||
Short-term investments | 12,313 | 12,878 | 4,041 | (565) | (4.4) | 8,272 | 204.7 | ||
Mortgage loans held for sale, at fair value | 32,127 | 35,833 | 21,953 | (3,706) | (10.3) | 10,174 | 46.3 | ||
Available for sale debt securities, at fair value | 911,958 | 940,342 | 917,545 | (28,384) | (3.0) | (5,587) | (0.6) | ||
Federal Home Loan Bank stock, at cost | 28,273 | 29,473 | 38,899 | (1,200) | (4.1) | (10,626) | (27.3) | ||
Loans: | |||||||||
Total loans | 5,014,885 | 5,134,388 | 5,096,210 | (119,503) | (2.3) | (81,325) | (1.6) | ||
Less: allowance for credit losses on loans | 41,126 | 37,236 | 41,056 | 3,890 | 10.4 | 70 | 0.2 | ||
Net loans | 4,973,759 | 5,097,152 | 5,055,154 | (123,393) | (2.4) | (81,395) | (1.6) | ||
Premises and equipment, net | 25,900 | 25,402 | 26,068 | 498 | 2.0 | (168) | (0.6) | ||
Operating lease right-of-use assets | 35,855 | 35,904 | 36,048 | (49) | (0.1) | (193) | (0.5) | ||
Investment in bank-owned life insurance | 116,010 | 115,126 | 107,546 | 884 | 0.8 | 8,464 | 7.9 | ||
Goodwill | 63,909 | 63,909 | 63,909 | — | — | — | — | ||
Identifiable intangible assets, net | 4,148 | 4,303 | 2,682 | (155) | (3.6) | 1,466 | 54.7 | ||
Other assets | 167,073 | 170,516 | 195,972 | (3,443) | (2.0) | (28,899) | (14.7) | ||
Total assets | $6,459,196 | $6,621,694 | $6,586,015 | ($162,498) | (2.5 %) | ($126,819) | (1.9 %) | ||
Liabilities: | |||||||||
Deposits: | |||||||||
Noninterest-bearing deposits | $585,415 | $595,092 | $625,590 | ($9,677) | (1.6 %) | ($40,175) | (6.4 %) | ||
Interest-bearing deposits | 4,579,218 | 4,674,898 | 4,414,991 | (95,680) | (2.0) | 164,227 | 3.7 | ||
Total deposits | 5,164,633 | 5,269,990 | 5,040,581 | (105,357) | (2.0) | 124,052 | 2.5 | ||
Federal Home Loan Bank advances | 576,000 | 626,000 | 850,000 | (50,000) | (8.0) | (274,000) | (32.2) | ||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | — | — | — | — | ||
Operating lease liabilities | 38,724 | 38,726 | 38,716 | (2) | — | 8 | — | ||
Other liabilities | 110,385 | 120,713 | 112,357 | (10,328) | (8.6) | (1,972) | (1.8) | ||
Total liabilities | 5,912,423 | 6,078,110 | 6,064,335 | (165,687) | (2.7) | (151,912) | (2.5) | ||
Shareholders' Equity: | |||||||||
Common stock | 1,223 | 1,223 | 1,223 | — | — | — | — | ||
Paid-in capital | 198,654 | 198,323 | 197,570 | 331 | 0.2 | 1,084 | 0.5 | ||
Retained earnings | 444,508 | 442,741 | 435,233 | 1,767 | 0.4 | 9,275 | 2.1 | ||
Accumulated other comprehensive loss | (78,435) | (79,309) | (99,179) | 874 | (1.1) | 20,744 | 20.9 | ||
Treasury stock, at cost | (19,177) | (19,394) | (13,167) | 217 | (1.1) | (6,010) | (45.6) | ||
Total shareholders' equity | 546,773 | 543,584 | 521,680 | 3,189 | 0.6 | 25,093 | 4.8 | ||
Total liabilities and shareholders' equity | $6,459,196 | $6,621,694 | $6,586,015 | ($162,498) | (2.5 %) | ($126,819) | (1.9 %) | ||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | ||||||||||
Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | |||||||||
Q1 2026 | Q4 2025 | Q1 2025 | $ | % | $ | % | ||||
Interest income: | ||||||||||
Interest and fees on loans | $64,338 | $67,040 | $66,656 | ($2,702) | (4.0 %) | ($2,318) | (3.5 %) | |||
Interest on mortgage loans held for sale | 375 | 606 | 958 | (231) | (38.1) | (583) | (60.9) | |||
Taxable interest on debt securities | 8,768 | 9,100 | 8,827 | (332) | (3.6) | (59) | (0.7) | |||
Nontaxable interest on debt securities | 7 | 8 | 7 | (1) | (12.5) | — | — | |||
Dividends on Federal Home Loan Bank stock | 585 | 792 | 1,022 | (207) | (26.1) | (437) | (42.8) | |||
Other interest income | 909 | 1,291 | 1,993 | (382) | (29.6) | (1,084) | (54.4) | |||
Total interest and dividend income | 74,982 | 78,837 | 79,463 | (3,855) | (4.9) | (4,481) | (5.6) | |||
Interest expense: | ||||||||||
Deposits | 27,370 | 30,060 | 31,748 | (2,690) | (8.9) | (4,378) | (13.8) | |||
Federal Home Loan Bank advances | 6,777 | 7,696 | 10,946 | (919) | (11.9) | (4,169) | (38.1) | |||
Junior subordinated debentures | 310 | 333 | 347 | (23) | (6.9) | (37) | (10.7) | |||
Total interest expense | 34,457 | 38,089 | 43,041 | (3,632) | (9.5) | (8,584) | (19.9) | |||
Net interest income | 40,525 | 40,748 | 36,422 | (223) | (0.5) | 4,103 | 11.3 | |||
Provision for credit losses | 4,000 | 600 | 1,200 | 3,400 | 566.7 | 2,800 | 233.3 | |||
Net interest income after provision for credit losses | 36,525 | 40,148 | 35,222 | (3,623) | (9.0) | 1,303 | 3.7 | |||
Noninterest income: | ||||||||||
Wealth management revenues | 10,647 | 10,852 | 9,891 | (205) | (1.9) | 756 | 7.6 | |||
Mortgage banking revenues | 3,045 | 3,250 | 2,304 | (205) | (6.3) | 741 | 32.2 | |||
Card interchange fees | 1,385 | 1,217 | 1,509 | 168 | 13.8 | (124) | (8.2) | |||
Service charges on deposit accounts | 785 | 843 | 744 | (58) | (6.9) | 41 | 5.5 | |||
Loan related derivative income | 227 | 1,081 | 101 | (854) | (79.0) | 126 | 124.8 | |||
Income from bank-owned life insurance | 885 | 886 | 769 | (1) | (0.1) | 116 | 15.1 | |||
Gain on sale of bank-owned properties, net | — | — | 6,994 | — | — | (6,994) | (100.0) | |||
Other income | 329 | 374 | 331 | (45) | (12.0) | (2) | (0.6) | |||
Total noninterest income | 17,303 | 18,503 | 22,643 | (1,200) | (6.5) | (5,340) | (23.6) | |||
Noninterest expense: | ||||||||||
Salaries and employee benefits | 24,340 | 23,647 | 22,422 | 693 | 2.9 | 1,918 | 8.6 | |||
Outsourced services | 4,383 | 4,067 | 4,346 | 316 | 7.8 | 37 | 0.9 | |||
Net occupancy | 2,890 | 2,642 | 2,741 | 248 | 9.4 | 149 | 5.4 | |||
Equipment | 903 | 852 | 891 | 51 | 6.0 | 12 | 1.3 | |||
Legal, audit, and professional fees | 936 | 667 | 750 | 269 | 40.3 | 186 | 24.8 | |||
FDIC deposit insurance costs | 935 | 1,028 | 1,262 | (93) | (9.0) | (327) | (25.9) | |||
Advertising and promotion | 547 | 1,029 | 410 | (482) | (46.8) | 137 | 33.4 | |||
Amortization of intangibles | 155 | 155 | 204 | — | — | (49) | (24.0) | |||
Pension plan settlement charge | — | — | 6,436 | — | — | (6,436) | (100.0) | |||
Other expenses | 2,676 | 3,896 | 2,734 | (1,220) | (31.3) | (58) | (2.1) | |||
Total noninterest expense | 37,765 | 37,983 | 42,196 | (218) | (0.6) | (4,431) | (10.5) | |||
Income before income taxes | 16,063 | 20,668 | 15,669 | (4,605) | (22.3) | 394 | 2.5 | |||
Income tax expense | 3,463 | 4,694 | 3,490 | (1,231) | (26.2) | (27) | (0.8) | |||
Net income | $12,600 | $15,974 | $12,179 | ($3,374) | (21.1 %) | $421 | 3.5 % | |||
Weighted avg common shares outstanding - basic | 19,039 | 19,034 | 19,276 | |||||||
Weighted avg common shares outstanding - diluted | 19,173 | 19,159 | 19,370 | |||||||
Per share information: | ||||||||||
Basic earnings per common share | $0.66 | $0.84 | $0.63 | ($0.18) | (21.4 %) | $0.03 | 4.8 % | |||
Diluted earnings per common share | $0.66 | $0.83 | $0.63 | ($0.17) | (20.5 %) | $0.03 | 4.8 % | |||
Cash dividends declared | $0.56 | $0.56 | $0.56 | $— | — % | $— | — % | |||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||
Mar 31, | Dec 31, | Mar 31, | Mar 31, 2026 vs. | Mar 31, 2026 vs. | |||||
Share and Equity Related Data: | |||||||||
Book value per share | $28.72 | $28.56 | $27.06 | $0.16 | 0.6 % | $1.66 | 6.1 % | ||
Tangible book value per share (non-GAAP) (1) | $25.14 | $24.97 | $23.61 | $0.17 | 0.7 % | $1.53 | 6.5 % | ||
Market value per share | $33.46 | $29.55 | $30.86 | $3.91 | 13.2 % | $2.60 | 8.4 % | ||
Shares issued at end of period | 19,562 | 19,562 | 19,562 | — shs | — % | — shs | — % | ||
Shares outstanding at end of period | 19,041 | 19,035 | 19,276 | 6 shs | — % | (235) shs | (1.2 %) | ||
Capital Ratios (2): | |||||||||
Tier 1 risk-based capital | 12.46 % | 12.14 % | 12.23 % | 32 bps | 23 bps | ||||
Total risk-based capital | 13.38 % | 12.95 % | 13.13 % | 43 bps | 25 bps | ||||
Tier 1 leverage ratio | 8.80 % | 8.65 % | 8.45 % | 15 bps | 35 bps | ||||
Common equity tier 1 | 11.99 % | 11.68 % | 11.76 % | 31 bps | 23 bps | ||||
Balance Sheet Ratios: | |||||||||
Equity to assets | 8.47 % | 8.21 % | 7.92 % | 26 bps | 55 bps | ||||
Tangible equity to tangible assets (non-GAAP) (1) | 7.49 % | 7.25 % | 6.98 % | 24 bps | 51 bps | ||||
Loans to deposits (3) | 96.9 % | 97.4 % | 100.7 % | (50) bps | (380) bps | ||||
Q1 2026 | ||||||
Q1 2026 | Q4 2025 | Q1 2025 | vs. | vs. | ||
Performance Ratios (4): | ||||||
Net interest margin (5) | 2.63 % | 2.56 % | 2.29 % | 7 | 34 | |
Return on average assets (6) | 0.78 % | 0.95 % | 0.73 % | (17) | 5 | |
Adjusted return on average assets (non-GAAP) (1) | 0.78 % | 0.95 % | 0.71 % | (17) | 7 | |
Return on average tangible assets (non-GAAP) (1) | 0.79 % | 0.96 % | 0.71 % | (17) | 8 | |
Return on average equity (7) | 9.23 % | 11.70 % | 9.63 % | (247) | (40) | |
Adjusted return on average equity (non-GAAP) (1) | 9.23 % | 11.70 % | 9.30 % | (247) | (7) | |
Return on average tangible equity (non-GAAP) (1) | 10.53 % | 13.39 % | 10.69 % | (286) | (16) | |
Efficiency ratio (8) | 65.3 % | 64.1 % | 71.4 % | 120 | (610) | |
Adjusted efficiency ratio (non-GAAP) (1) | 65.3 % | 64.1 % | 68.7 % | 120 | (340) | |
(1) | See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document. |
(2) | Estimated for Mar 31, 2026 and actuals for prior periods. |
(3) | Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits. |
(4) | Annualized based on the actual number of days in the period. |
(5) | Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets. |
(6) | Net income divided by average assets. |
(7) | Net income divided by average equity. |
(8) | Total noninterest expense as percentage of total revenues (net interest income and noninterest income). |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||
(Unaudited; Dollars in thousands) | |||||||||
Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | ||||||||
Q1 2026 | Q4 2025 | Q1 2025 | $ | % | $ | % | |||
Wealth Management Results | |||||||||
Wealth Management Revenues: | |||||||||
Asset-based revenues | $10,580 | $10,749 | $9,769 | ($169) | (1.6 %) | $811 | 8.3 % | ||
Transaction-based revenues | 67 | 103 | 122 | (36) | (35.0) | (55) | (45.1) | ||
Total wealth management revenues | $10,647 | $10,852 | $9,891 | ($205) | (1.9 %) | $756 | 7.6 % | ||
Assets Under Administration (AUA): | |||||||||
Spot balance at end of period (1) | $7,495,602 | $7,777,250 | $6,818,390 | ($281,648) | (3.6 %) | $677,212 | 9.9 % | ||
Percentage of AUA that are managed assets | 91 % | 91 % | 91 % | ||||||
Mortgage Banking Results | |||||||||
Mortgage Banking Revenues: | |||||||||
Realized gains on loan sales, net (2) | $2,370 | $3,424 | $1,575 | ($1,054) | (30.8 %) | $795 | 50.5 % | ||
Changes in fair value, net (3) | 164 | (610) | 133 | 774 | 126.9 | 31 | 23.3 | ||
Loan servicing fee income, net (4) | 511 | 436 | 596 | 75 | 17.2 | (85) | (14.3) | ||
Total mortgage banking revenues | $3,045 | $3,250 | $2,304 | ($205) | (6.3 %) | $741 | 32.2 % | ||
Residential Mortgage Loan Originations: | |||||||||
Originations for retention in portfolio (5) | $36,813 | $46,912 | $27,662 | ($10,099) | (21.5 %) | $9,151 | 33.1 % | ||
Originations for sale to secondary market (6) | 118,351 | 162,410 | 75,519 | (44,059) | (27.1) | 42,832 | 56.7 | ||
Total mortgage loan originations | $155,164 | $209,322 | $103,181 | ($54,158) | (25.9 %) | $51,983 | 50.4 % | ||
Percentage of originations for sale to total | 76 % | 78 % | 73 % | ||||||
Residential Mortgage Loans Sold: | |||||||||
Sold with servicing rights retained | $4,670 | $7,461 | $16,819 | ($2,791) | (37.4 %) | ($12,149) | (72.2 %) | ||
Sold with servicing rights released (6) | 116,853 | 150,507 | 58,680 | (33,654) | (22.4) | 58,173 | 99.1 | ||
Total mortgage loans sold | $121,523 | $157,968 | $75,499 | ($36,445) | (23.1 %) | $46,024 | 61.0 % | ||
(1) | Includes the impact of $195 million of managed assets acquired from Lighthouse Financial Management, LLC on Jul 31, 2025. |
(2) | Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments. |
(3) | Represents fair value changes on mortgage loans held for sale and forward loan commitments. |
(4) | Represents loan servicing fee income, net of servicing right amortization and valuation adjustments. |
(5) | Includes the full commitment amount of homeowner construction loans. |
(6) | Includes brokered loans (loans originated for others). |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
END OF PERIOD LOAN COMPOSITION | |||||||||
(Unaudited; Dollars in thousands) | |||||||||
Mar 31, 2026 vs. | Mar 31, 2026 vs. | ||||||||
Mar 31, | Dec 31, | Mar 31, | $ | % | $ | % | |||
Loans: | |||||||||
Commercial real estate (1) | $2,084,804 | $2,183,985 | $2,134,107 | ($99,181) | (4.5 %) | ($49,303) | (2.3 %) | ||
Commercial & industrial | 568,177 | 564,082 | 535,030 | 4,095 | 0.7 | 33,147 | 6.2 | ||
Total commercial | 2,652,981 | 2,748,067 | 2,669,137 | (95,086) | (3.5) | (16,156) | (0.6) | ||
Residential real estate (2) | 2,029,092 | 2,050,399 | 2,113,307 | (21,307) | (1.0) | (84,215) | (4.0) | ||
Home equity | 316,353 | 318,862 | 296,563 | (2,509) | (0.8) | 19,790 | 6.7 | ||
Other | 16,459 | 17,060 | 17,203 | (601) | (3.5) | (744) | (4.3) | ||
Total consumer | 332,812 | 335,922 | 313,766 | (3,110) | (0.9) | 19,046 | 6.1 | ||
Total loans | $5,014,885 | $5,134,388 | $5,096,210 | ($119,503) | (2.3 %) | ($81,325) | (1.6 %) | ||
(1) | Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property. |
(2) | Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties. |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
END OF PERIOD LOAN COMPOSITION | ||||||||
(Unaudited; Dollars in thousands) | ||||||||
Mar 31, 2026 | Dec 31, 2025 | Balance Change | ||||||
Balance | % of Total | Balance | % of Total | $ | % | |||
Commercial Real Estate Portfolio Segmentation: | ||||||||
Multi-family | $639,976 | 31 % | $667,388 | 31 % | ($27,412) | (4.1 %) | ||
Retail | 407,029 | 20 | 436,961 | 20 | (29,932) | (6.9) | ||
Industrial and warehouse | 339,839 | 16 | 380,403 | 17 | (40,564) | (10.7) | ||
Hospitality | 242,229 | 12 | 230,549 | 11 | 11,680 | 5.1 | ||
Office | 231,007 | 11 | 237,706 | 11 | (6,699) | (2.8) | ||
Healthcare Facility | 156,138 | 7 | 156,871 | 7 | (733) | (0.5) | ||
Mixed-use | 27,459 | 1 | 26,440 | 1 | 1,019 | 3.9 | ||
Other | 41,127 | 2 | 47,667 | 2 | (6,540) | (13.7) | ||
Total commercial real estate loans | $2,084,804 | 100 % | $2,183,985 | 100 % | ($99,181) | (4.5 %) | ||
Commercial & Industrial Portfolio Segmentation: | ||||||||
Healthcare and social assistance | $149,292 | 26 % | $150,061 | 27 % | ($769) | (0.5 %) | ||
Retail trade | 62,866 | 11 | 48,289 | 9 | 14,577 | 30.2 | ||
Transportation and warehousing | 55,864 | 10 | 55,315 | 10 | 549 | 1.0 | ||
Educational services | 53,831 | 9 | 54,245 | 10 | (414) | (0.8) | ||
Accommodation and food services | 32,982 | 6 | 26,431 | 5 | 6,551 | 24.8 | ||
Finance and insurance | 26,834 | 5 | 22,727 | 4 | 4,107 | 18.1 | ||
Manufacturing | 25,540 | 4 | 23,714 | 4 | 1,826 | 7.7 | ||
Arts, entertainment, and recreation | 24,947 | 4 | 22,043 | 4 | 2,904 | 13.2 | ||
Information | 21,681 | 4 | 21,843 | 4 | (162) | (0.7) | ||
Real estate rental and leasing | 20,009 | 4 | 57,113 | 10 | (37,104) | (65.0) | ||
Professional, scientific, and technical services | 19,625 | 3 | 12,490 | 2 | 7,135 | 57.1 | ||
Public administration | 6,163 | 1 | 1,448 | — | 4,715 | 325.6 | ||
Other | 68,543 | 13 | 68,363 | 11 | 180 | 0.3 | ||
Total commercial & industrial loans | $568,177 | 100 % | $564,082 | 100 % | $4,095 | 0.7 % | ||
Weighted Average | Asset Quality | Supplemental | ||||||||
Balance | Average | Loan to | Debt | Pass | Special | Classified | ||||
Non-Owner Occupied Commercial Real | ||||||||||
Class A | $85,054 | $10,673 | 59 % | 1.59x | $56,580 | $— | $28,474 | $22,349 | ||
Class B | 70,776 | 3,539 | 54 % | 1.48x | 67,003 | 3,773 | — | — | ||
Class C | 10,416 | 1,488 | 56 % | 1.35x | 10,416 | — | — | — | ||
Medical Office | 30,666 | 6,133 | 56 % | 1.54x | 30,666 | — | — | — | ||
Lab Space | 34,095 | 18,289 | 103 % | —x | — | 27,521 | 6,574 | 6,574 | ||
Total office at Mar 31, 2026 (1) | $231,007 | $5,567 | 64 % | 1.29x | $164,665 | $31,294 | $35,048 | $28,923 | ||
Total office at Dec 31, 2025 | $237,706 | $5,611 | 60 % | 1.27x | $173,837 | $57,712 | $6,157 | $— | ||
Mar 31, 2026 vs. Dec 31, 2025 | ($6,699) | ($44) | 4 % | 0.02x | ($9,172) | ($26,418) | $28,891 | $28,923 | ||
(1) | Approximately 65% of the total commercial real estate office balance of $231 million is secured by income producing properties located in suburban areas. Additionally, approximately 59% of the total commercial real estate office balance is scheduled to mature before Mar 31, 2028. |
(2) | Balance of commercial real estate office consists of 42 loans as of Mar 31, 2026. |
(3) | Does not include $2.8 million of unfunded commitments as of Mar 31, 2026. |
(4) | Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY | |||||||||
(Unaudited; Dollars in thousands) | |||||||||
Mar 31, 2026 vs. | Mar 31, 2026 vs. | ||||||||
Mar 31, | Dec 31, | Mar 31, | $ | % | $ | % | |||
Deposits: | |||||||||
Noninterest-bearing demand deposits | $585,415 | $595,092 | $625,590 | ($9,677) | (1.6 %) | ($40,175) | (6.4 %) | ||
Interest-bearing demand deposits (in-market) | 758,524 | 756,794 | 654,599 | 1,730 | 0.2 | 103,925 | 15.9 | ||
NOW accounts | 690,987 | 715,114 | 686,666 | (24,127) | (3.4) | 4,321 | 0.6 | ||
Money market accounts | 1,132,421 | 1,185,420 | 1,202,703 | (52,999) | (4.5) | (70,282) | (5.8) | ||
Savings accounts | 830,855 | 796,887 | 630,413 | 33,968 | 4.3 | 200,442 | 31.8 | ||
Time deposits (in-market) | 1,166,431 | 1,220,683 | 1,213,382 | (54,252) | (4.4) | (46,951) | (3.9) | ||
In-market deposits | 5,164,633 | 5,269,990 | 5,013,353 | (105,357) | (2.0) | 151,280 | 3.0 | ||
Wholesale brokered time deposits | — | — | 27,228 | — | — | (27,228) | (100.0) | ||
Total deposits | $5,164,633 | $5,269,990 | $5,040,581 | ($105,357) | (2.0 %) | $124,052 | 2.5 % | ||
Mar 31, | Dec 31, | Mar 31, 2026 vs. | ||||
Contingent Liquidity: | ||||||
Federal Home Loan Bank of Boston | $1,392,049 | $1,356,005 | $36,044 | 2.7 % | ||
Federal Reserve Bank of Boston | 99,775 | 104,379 | (4,604) | (4.4) | ||
Available cash liquidity (1) | 16,088 | 17,460 | (1,372) | (7.9) | ||
Unencumbered securities | 528,317 | 539,830 | (11,513) | (2.1) | ||
Total | $2,036,229 | $2,017,674 | $18,555 | 0.9 % | ||
(1) | Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
CREDIT & ASSET QUALITY DATA | |||||||||
(Unaudited; Dollars in thousands) | |||||||||
Mar 31, 2026 vs. | |||||||||
Mar 31, | Dec 31, | Mar 31, | Dec 31, | Mar 31, | |||||
Asset Quality Ratios: | |||||||||
Nonperforming assets to total assets | 0.63 % | 0.20 % | 0.33 % | 43 | 30 | ||||
Nonaccrual loans to total loans | 0.81 % | 0.25 % | 0.42 % | 56 | 39 | ||||
Total past due loans to total loans | 0.33 % | 0.22 % | 0.20 % | 11 | 13 | ||||
ACL on loans to nonaccrual loans | 101.70 % | 288.14 % | 189.85 % | (18,644) | (8,815) | ||||
ACL on loans to total loans | 0.82 % | 0.73 % | 0.81 % | 9 | 1 | ||||
Mar 31, 2026 vs. | Mar 31, 2026 vs. | ||||||||
Mar 31, | Dec 31, | Mar 31, | $ | % | $ | % | |||
Nonperforming Assets: | |||||||||
Commercial real estate | $28,923 | $— | $7,605 | $28,923 | — % | $21,318 | 280.3 % | ||
Commercial & industrial | 126 | — | 1,140 | 126 | — | (1,014) | (88.9) | ||
Total commercial | 29,049 | — | 8,745 | 29,049 | — | 20,304 | 232.2 | ||
Residential real estate | 9,631 | 11,099 | 11,102 | (1,468) | (13.2) | (1,471) | (13.2) | ||
Home equity | 1,757 | 1,824 | 1,779 | (67) | (3.7) | (22) | (1.2) | ||
Other consumer | 3 | — | — | 3 | — | 3 | — | ||
Total consumer | 1,760 | 1,824 | 1,779 | (64) | (3.5) | (19) | (1.1) | ||
Total nonaccrual loans | 40,440 | 12,923 | 21,626 | 27,517 | 212.9 | 18,814 | 87.0 | ||
Other real estate owned | — | — | — | — | — | — | — | ||
Total nonperforming assets | $40,440 | $12,923 | $21,626 | $27,517 | 212.9 % | $18,814 | 87.0 % | ||
Past Due Loans (30 days or more past due): | |||||||||
Commercial real estate | $6,574 | $648 | $— | $5,926 | 914.5 % | $6,574 | 100.0 % | ||
Commercial & industrial | 470 | 7 | 1,146 | 463 | 6,614.3 | (676) | (59.0) | ||
Total commercial | 7,044 | 655 | 1,146 | 6,389 | 975.4 | 5,898 | 514.7 | ||
Residential real estate | 6,627 | 9,095 | 6,439 | (2,468) | (27.1) | 188 | 2.9 | ||
Home equity | 2,746 | 1,607 | 2,578 | 1,139 | 70.9 | 168 | 6.5 | ||
Other consumer | 31 | 26 | 32 | 5 | 19.2 | (1) | (3.1) | ||
Total consumer | 2,777 | 1,633 | 2,610 | 1,144 | 70.1 | 167 | 6.4 | ||
Total past due loans | $16,448 | $11,383 | $10,195 | $5,065 | 44.5 % | $6,253 | 61.3 % | ||
Accruing loans 90 days or more past due | $— | $— | $— | $— | — % | $— | — % | ||
Nonaccrual loans included in past due loans | $12,297 | $8,348 | $7,354 | $3,949 | 47.3 % | $4,943 | 67.2 % | ||
Washington Trust Bancorp, Inc. and Subsidiaries | |||
CREDIT & ASSET QUALITY DATA | |||
(Unaudited; Dollars in thousands) | |||
For the Three Months Ended | |||
Mar 31, | Dec 31, | Mar 31, | |
Nonaccrual Loan Activity: | |||
Balance at beginning of period | $12,923 | $14,016 | $23,307 |
Additions to nonaccrual status | 29,064 | 1,851 | 2,142 |
Loans returned to accruing status | (69) | (1,229) | (4) |
Loans charged-off | (84) | (87) | (2,522) |
Loans transferred to other real estate owned | — | — | — |
Payments, payoffs, and other changes | (1,394) | (1,628) | (1,297) |
Balance at end of period | $40,440 | $12,923 | $21,626 |
Allowance for Credit Losses on Loans: | |||
Balance at beginning of period | $37,236 | $36,576 | $41,960 |
Provision for credit losses on loans (1) | 3,900 | 500 | 1,400 |
Charge-offs | (84) | (87) | (2,522) |
Recoveries | 74 | 247 | 218 |
Balance at end of period | $41,126 | $37,236 | $41,056 |
Allowance for Credit Losses on Unfunded Commitments: | |||
Balance at beginning of period | $1,140 | $1,040 | $1,440 |
Provision for credit losses on unfunded commitments (1) | 100 | 100 | (200) |
Balance at end of period (2) | $1,240 | $1,140 | $1,240 |
(1) | Included in provision for credit losses in the Consolidated Statements of Income. |
(2) | Included in other liabilities in the Consolidated Balance Sheets. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
CREDIT & ASSET QUALITY DATA | |||||||||
(Unaudited; Dollars in thousands) | |||||||||
Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | ||||||||
Q1 2026 | Q4 2025 | Q1 2025 | $ | % | $ | % | |||
Provision for Credit Losses: | |||||||||
Provision for credit losses on loans | $3,900 | $500 | $1,400 | $3,400 | 680.0 % | $2,500 | 178.6 % | ||
Provision for credit losses on unfunded commitments | 100 | 100 | (200) | — | — | 300 | 150.0 | ||
Provision for credit losses | $4,000 | $600 | $1,200 | $3,400 | 566.7 % | $2,800 | 233.3 % | ||
Net Loan Charge-Offs (Recoveries): | |||||||||
Commercial real estate | $— | ($118) | $2,250 | $118 | 100.0 % | ($2,250) | (100.0 %) | ||
Commercial & industrial | (42) | (111) | 3 | 69 | 62.2 | (45) | (1500.0) | ||
Total commercial | (42) | (229) | 2,253 | 187 | 81.7 | (2,295) | (101.9) | ||
Residential real estate | (1) | — | — | (1) | — | (1) | — | ||
Home equity | (1) | (1) | (1) | — | — | — | — | ||
Other consumer | 54 | 70 | 52 | (16) | (22.9) | 2 | 3.8 | ||
Total consumer | 53 | 69 | 51 | (16) | (23.2) | 2 | 3.9 | ||
Total | $10 | ($160) | $2,304 | $170 | 106.3 % | ($2,294) | (99.6 %) | ||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||
(Unaudited; Dollars in thousands) | |||||||||||
The following table presents daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt | |||||||||||
For the Three Months Ended | Mar 31, 2026 | Dec 31, 2025 | Change | ||||||||
Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | |||
Assets: | |||||||||||
Cash, federal funds sold, and short-term | $101,091 | $909 | 3.65 % | $131,215 | $1,291 | 3.90 % | ($30,124) | ($382) | (0.25 %) | ||
Mortgage loans held for sale | 24,760 | 375 | 6.14 | 38,696 | 606 | 6.21 | (13,936) | (231) | (0.07) | ||
Taxable debt securities | 1,022,612 | 8,768 | 3.48 | 1,051,549 | 9,100 | 3.43 | (28,937) | (332) | 0.05 | ||
Nontaxable debt securities | 650 | 8 | 4.99 | 650 | 8 | 4.88 | — | — | 0.11 | ||
Total securities | 1,023,262 | 8,776 | 3.48 | 1,052,199 | 9,108 | 3.43 | (28,937) | (332) | 0.05 | ||
FHLB stock | 30,566 | 585 | 7.76 | 32,918 | 792 | 9.55 | (2,352) | (207) | (1.79) | ||
Commercial real estate | 2,148,792 | 28,718 | 5.42 | 2,148,052 | 30,724 | 5.67 | 740 | (2,006) | (0.25) | ||
Commercial & industrial | 571,498 | 7,921 | 5.62 | 561,035 | 8,292 | 5.86 | 10,463 | (371) | (0.24) | ||
Total commercial | 2,720,290 | 36,639 | 5.46 | 2,709,087 | 39,016 | 5.71 | 11,203 | (2,377) | (0.25) | ||
Residential real estate | 2,035,597 | 22,723 | 4.53 | 2,062,589 | 22,829 | 4.39 | (26,992) | (106) | 0.14 | ||
Home equity | 316,660 | 4,931 | 6.32 | 313,759 | 5,194 | 6.57 | 2,901 | (263) | (0.25) | ||
Other | 16,589 | 215 | 5.26 | 16,764 | 216 | 5.11 | (175) | (1) | 0.15 | ||
Total consumer | 333,249 | 5,146 | 6.26 | 330,523 | 5,410 | 6.49 | 2,726 | (264) | (0.23) | ||
Total loans | 5,089,136 | 64,508 | 5.14 | 5,102,199 | 67,255 | 5.23 | (13,063) | (2,747) | (0.09) | ||
Total interest-earning assets | 6,268,815 | 75,153 | 4.86 | 6,357,227 | 79,052 | 4.93 | (88,412) | (3,899) | (0.07) | ||
Noninterest-earning assets | 297,871 | 290,006 | 7,865 | ||||||||
Total assets | $6,566,686 | $6,647,233 | ($80,547) | ||||||||
Liabilities and Shareholders' Equity: | |||||||||||
Interest-bearing demand deposits (in-market) | $748,233 | $5,889 | 3.19 % | $734,617 | $6,375 | 3.44 % | $13,616 | ($486) | (0.25 %) | ||
NOW accounts | 676,240 | 259 | 0.16 | 671,840 | 348 | 0.21 | 4,400 | (89) | (0.05) | ||
Money market accounts | 1,162,609 | 7,788 | 2.72 | 1,198,818 | 8,846 | 2.93 | (36,209) | (1,058) | (0.21) | ||
Savings accounts | 810,040 | 3,418 | 1.71 | 757,843 | 3,456 | 1.81 | 52,197 | (38) | (0.10) | ||
Time deposits (in-market) | 1,190,414 | 10,016 | 3.41 | 1,225,779 | 11,035 | 3.57 | (35,365) | (1,019) | (0.16) | ||
Interest-bearing in-market deposits | 4,587,536 | 27,370 | 2.42 | 4,588,897 | 30,060 | 2.60 | (1,361) | (2,690) | (0.18) | ||
Wholesale brokered time deposits | — | — | — | — | — | — | — | — | — | ||
Total interest-bearing deposits | 4,587,536 | 27,370 | 2.42 | 4,588,897 | 30,060 | 2.60 | (1,361) | (2,690) | (0.18) | ||
FHLB advances | 660,667 | 6,777 | 4.16 | 708,174 | 7,696 | 4.31 | (47,507) | (919) | (0.15) | ||
Junior subordinated debentures | 22,681 | 310 | 5.54 | 22,681 | 333 | 5.82 | — | (23) | (0.28) | ||
Total interest-bearing liabilities | 5,270,884 | 34,457 | 2.65 | 5,319,752 | 38,089 | 2.84 | (48,868) | (3,632) | (0.19) | ||
Noninterest-bearing demand deposits | 604,302 | 647,274 | (42,972) | ||||||||
Other liabilities | 138,126 | 138,742 | (616) | ||||||||
Shareholders' equity | 553,374 | 541,465 | 11,909 | ||||||||
Total liabilities and shareholders' equity | $6,566,686 | $6,647,233 | ($80,547) | ||||||||
Net interest income (FTE) | $40,696 | $40,963 | ($267) | ||||||||
Interest rate spread | 2.21 % | 2.09 % | 0.12 % | ||||||||
Net interest margin | 2.63 % | 2.56 % | 0.07 % | ||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: | ||||
For the Three Months Ended | Mar 31, 2026 | Dec 31, 2025 | Change | |
Commercial loans | $168 | $214 | ($46) | |
Nontaxable debt securities | 1 | — | 1 | |
Total | $169 | $214 | ($45) | |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||
The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, and adjusted net income: | |||||||||
Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | ||||||||
Q1 2026 | Q4 2025 | Q1 2025 | $ | % | $ | % | |||
Adjusted Noninterest Income: | |||||||||
Noninterest income, as reported | $17,303 | $18,503 | $22,643 | ($1,200) | (6.5 %) | ($5,340) | (23.6 %) | ||
Less adjustments: | |||||||||
Gain on sale of bank-owned properties, net | — | — | 6,994 | — | — | (6,994) | (100.0) | ||
Adjusted noninterest income (non-GAAP) | $17,303 | $18,503 | $15,649 | ($1,200) | (6.5 %) | $1,654 | 10.6 % | ||
Adjusted Noninterest Expense: | |||||||||
Noninterest expense, as reported | $37,765 | $37,983 | $42,196 | ($218) | (0.6 %) | ($4,431) | (10.5 %) | ||
Less adjustments: | |||||||||
Pension plan settlement charge | — | — | 6,436 | — | — | (6,436) | (100.0) | ||
Adjusted noninterest expense (non-GAAP) | $37,765 | $37,983 | $35,760 | ($218) | (0.6 %) | $2,005 | 5.6 % | ||
Adjusted Income Before Income Taxes: | |||||||||
Income before income taxes | $16,063 | $20,668 | $15,669 | ($4,605) | (22.3 %) | $394 | 2.5 % | ||
Less: total adjustments, pre-tax | — | — | 558 | — | — | (558) | (100.0) | ||
Adjusted income before income taxes (non-GAAP) | $16,063 | $20,668 | $15,111 | ($4,605) | (22.3 %) | $952 | 6.3 % | ||
Adjusted Income Tax Expense: | |||||||||
Income tax expense, as reported | $3,463 | $4,694 | $3,490 | ($1,231) | (26.2 %) | ($27) | (0.8 %) | ||
Less: tax on total adjustments | — | — | 141 | — | — | (141) | (100.0) | ||
Adjusted income tax expense (non-GAAP) | $3,463 | $4,694 | $3,349 | ($1,231) | (26.2 %) | $114 | 3.4 % | ||
Adjusted Net Income: | |||||||||
Net income, as reported | $12,600 | $15,974 | $12,179 | ($3,374) | (21.1 %) | $421 | 3.5 % | ||
Less: total adjustments, after-tax | — | — | 417 | — | — | (417) | (100.0) | ||
Adjusted net income (non-GAAP) | $12,600 | $15,974 | $11,762 | ($3,374) | (21.1 %) | $838 | 7.1 % | ||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) | |||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||
The following table presents adjusted diluted earnings per common share and adjusted efficiency ratio: | |||||||||
Q1 2026 | Q4 2025 | Q1 2025 | Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | |||||
Adjusted Diluted Earnings per Common Share: | |||||||||
Diluted earnings per common share, as reported (1) | $0.66 | $0.83 | $0.63 | ($0.17) | (20.5 %) | $0.03 | 4.8 % | ||
Less: impact of total adjustments | — | — | 0.02 | — | — | (0.02) | (100.0) | ||
Adjusted diluted earnings per common share (non-GAAP) (2) | $0.66 | $0.83 | $0.61 | ($0.17) | (20.5 %) | $0.05 | 8.2 % | ||
Adjusted Efficiency Ratio: | |||||||||
Efficiency ratio, as reported (3) | 65.3 % | 64.1 % | 71.4 % | 120 bps | (610) bps | ||||
Less: impact of total adjustments | — | — | 2.7 | — bps | (270) bps | ||||
Adjusted efficiency ratio (non-GAAP) (4) | 65.3 % | 64.1 % | 68.7 % | 120 bps | (340) bps | ||||
(1) | Net income divided by weighted average diluted common and potential shares outstanding. |
(2) | Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding. |
(3) | Total noninterest expense as percentage of total revenues (net interest income and noninterest income). |
(4) | Total noninterest expense as percentage of total revenues (net interest income and noninterest income), each adjusted for the pre-tax impact of adjustments as outlined in the table above. |
The following table presents adjusted return on average assets and return on average tangible assets: | |||||||||
Q1 2026 | Q4 2025 | Q1 2025 | Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | |||||
Adjusted Return on Average Assets: | |||||||||
Net income, as reported | $12,600 | $15,974 | $12,179 | ($3,374) | (21.1 %) | $421 | 3.5 % | ||
Less: total adjustments, after-tax | — | — | 417 | — | — | (417) | (100.0) | ||
Adjusted net income (non-GAAP) | $12,600 | $15,974 | $11,762 | ($3,374) | (21.1 %) | $838 | 7.1 % | ||
Total average assets, as reported | $6,566,686 | $6,647,233 | $6,765,057 | ($80,547) | (1.2 %) | ($198,371) | (2.9 %) | ||
Return on average assets (1) | 0.78 % | 0.95 % | 0.73 % | (17) bps | 5 bps | ||||
Adjusted return on average assets (non-GAAP) (2) | 0.78 % | 0.95 % | 0.71 % | (17) bps | 7 bps | ||||
Return on Average Tangible Assets: | |||||||||
Adjusted net income (non-GAAP) | $12,600 | $15,974 | $11,762 | ($3,374) | (21.1 %) | $838 | 7.1 % | ||
Total average assets, as reported | $6,566,686 | $6,647,233 | $6,765,057 | ($80,547) | (1.2 %) | ($198,371) | (2.9 %) | ||
Less average balances of: | |||||||||
Goodwill | 63,909 | 63,909 | 63,909 | — | — | — | — | ||
Identifiable intangible assets, net | 4,224 | 4,378 | 2,781 | (154) | (3.5) | 1,443 | 51.9 | ||
Total average tangible assets | $6,498,553 | $6,578,946 | $6,698,367 | ($80,393) | (1.2 %) | ($199,814) | (3.0 %) | ||
Return on average assets (1) | 0.78 % | 0.95 % | 0.73 % | (17) bps | 5 bps | ||||
Return on average tangible assets (non-GAAP) (3) | 0.79 % | 0.96 % | 0.71 % | (17) bps | 8 bps | ||||
(1) | Net income divided by total average assets. |
(2) | Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets. |
(3) | Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible assets. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) | |||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||
The following table presents adjusted return on average equity and return on average tangible equity: | |||||||||
Q1 2026 | Q4 2025 | Q1 2025 | Q1 2026 vs. Q4 2025 | Q1 2026 vs. Q1 2025 | |||||
Adjusted Return on Average Equity: | |||||||||
Net income, as reported | $12,600 | $15,974 | $12,179 | ($3,374) | (21.1 %) | $421 | 3.5 % | ||
Less: total adjustments, after-tax | — | — | 417 | — | — | (417) | (100.0) | ||
Adjusted net income (non-GAAP) | $12,600 | $15,974 | $11,762 | ($3,374) | (21.1 %) | $838 | 7.1 % | ||
Total average equity, as reported | $553,374 | $541,465 | $513,048 | $11,909 | 2.2 % | $40,326 | 7.9 % | ||
Return on average equity (1) | 9.23 % | 11.70 % | 9.63 % | (247) bps | (40) bps | ||||
Adjusted return on average equity (non-GAAP) (2) | 9.23 % | 11.70 % | 9.30 % | (247) bps | (7) bps | ||||
Return on Average Tangible Equity: | |||||||||
Adjusted net income (non-GAAP) | $12,600 | $15,974 | $11,762 | ($3,374) | (21.1 %) | $838 | 7.1 % | ||
Total average equity, as reported | $553,374 | $541,465 | $513,048 | $11,909 | 2.2 % | $40,326 | 7.9 % | ||
Less average balances of: | |||||||||
Goodwill | 63,909 | 63,909 | 63,909 | — | — | — | — | ||
Identifiable intangible assets, net | 4,224 | 4,378 | 2,781 | (154) | (3.5) | 1,443 | 51.9 | ||
Total average tangible equity (non-GAAP) | $485,241 | $473,178 | $446,358 | $12,063 | 2.5 % | $38,883 | 8.7 % | ||
Return on average equity (1) | 9.23 % | 11.70 % | 9.63 % | (247) bps | (40) bps | ||||
Return on average tangible equity (non-GAAP) (3) | 10.53 % | 13.39 % | 10.69 % | (286) bps | (16) bps | ||||
(1) | Net income divided by total average equity. |
(2) | Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity. |
(3) | Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible equity. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) | |||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||
The following table presents tangible book value per share and the ratio of tangible equity to tangible assets: | |||||||||
Mar 31, | Dec 31, | Mar 31, | Mar 31, 2026 vs. | Mar 31, 2026 vs. | |||||
Tangible Book Value per Share: | |||||||||
Total shareholders' equity, as reported | $546,773 | $543,584 | $521,680 | $3,189 | 0.6 % | $25,093 | 4.8 % | ||
Less end of period balances of: | |||||||||
Goodwill | 63,909 | 63,909 | 63,909 | — | — % | — | — % | ||
Identifiable intangible assets, net | 4,148 | 4,303 | 2,682 | (155) | (3.6) % | 1,466 | 54.7 % | ||
Total tangible shareholders' equity (non-GAAP) | $478,716 | $475,372 | $455,089 | $3,344 | 0.7 % | $23,627 | 5.2 % | ||
Shares outstanding, as reported | 19,041 | 19,035 | 19,276 | 6 | — % | (235) | (1.2 %) | ||
Book value per share | $28.72 | $28.56 | $27.06 | $0.16 | 0.6 % | $1.66 | 6.1 % | ||
Tangible book value per share (non-GAAP) | $25.14 | $24.97 | $23.61 | $0.17 | 0.7 % | $1.53 | 6.5 % | ||
Tangible Equity to Tangible Assets: | |||||||||
Total tangible shareholders' equity | $478,716 | $475,372 | $455,089 | $3,344 | 0.7 % | $23,627 | 5.2 % | ||
Total assets, as reported | $6,459,196 | $6,621,694 | $6,586,015 | ($162,498) | (2.5 %) | ($126,819) | (1.9 %) | ||
Less end of period balances of: | |||||||||
Goodwill | 63,909 | 63,909 | 63,909 | — | — % | — | — % | ||
Identifiable intangible assets, net | 4,148 | 4,303 | 2,682 | (155) | (3.6 %) | 1,466 | 54.7 % | ||
Total tangible assets (non-GAAP) | $6,391,139 | $6,553,482 | $6,519,424 | ($162,343) | (2.5 %) | ($128,285) | (2.0 %) | ||
Equity to assets | 8.47 % | 8.21 % | 7.92 % | 26 bps | 55 bps | ||||
Tangible equity to tangible assets (non-GAAP) | 7.49 % | 7.25 % | 6.98 % | 24 bps | 51 bps | ||||
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.