Media Contact: Kathleen Hart

VP, Public Relations Manager

Telephone: (401) 348-1495

E-mail: kahart@washtrust.com

Date: January 28, 2026

WESTERLY, R.I., January 28, 2026 (PR NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq: WASH; “Washington Trust” or the “Corporation”), today reported fourth quarter 2025 net income of $16.0 million, or $0.83 per diluted share, up from $10.8 million, or $0.56 per diluted share, for the preceding quarter. Full-year 2025 net income totaled $52.2 million, or $2.71 per diluted share, compared to a net loss of $28.1 million, or a $1.63 loss per diluted share, for 2024. Excluding the impact of previously disclosed infrequent transactions from both periods, full-year 2025 adjusted net income (non-GAAP) totaled $51.8 million, or $2.69 per diluted share, compared to adjusted net income (non-GAAP) of $40.9 million, or $2.37 per diluted share, for 2024.

“Our fourth quarter results reflect continued earnings momentum and improving profitability, with year-over-year performance supported by margin expansion, strong in-market deposit growth, and increases in wealth management and mortgage banking revenues,” said Washington Trust Chairman and Chief Executive Officer Edward O. “Ned” Handy III. “As we enter 2026, the addition of resources in our commercial and wealth management business lines, including the recently announced dedicated institutional banking team, positions us well for sustainable growth.”

FOURTH QUARTER HIGHLIGHTS (Q4 2025 vs. Q3 2025, unless otherwise noted):

•The net interest margin was 2.56%, up by 16 basis points. Full-year 2025 net interest margin was 2.40%, up by 53 basis points from 2024.

•The provision for credit losses normalized to $600 thousand, and asset quality metrics improved.

•Wealth management revenues increased by 5%.

•Mortgage loan originations and sales increased 21% and 25%, respectively.

•Loan balances were stable at $5.1 billion.

•In-market deposits (total deposits less wholesale brokered deposits) were up by 1% from September 30, 2025 and 9% from December 31, 2024.

•Capital ratios remained strong, with a total risk-based capital ratio of 12.95% at December 31, 2025.

RESULTS OF OPERATIONS (Q4 2025 vs. Q3 2025, unless otherwise noted):

Net Interest Income

Net interest income was $40.7 million, up by $1.9 million, or 5%, and the net interest margin was 2.56%, up by 16 basis points. This was supported by lower funding costs and included an increase in loan prepayment income.

•Commercial loan prepayment fee income was $516 thousand (a 3 basis point benefit to net interest margin).

•Average interest-earning assets decreased by $93 million, due to decreases in loans and securities. The yield was 4.93%, down by 6 basis points.

•Average interest-bearing liabilities decreased by $104 million, due to decreases in wholesale funding balances, partially offset by growth in in-market deposits. The rate was 2.84%, down by 24 basis points.

Noninterest Income

Noninterest income was $18.5 million, up by $867 thousand, or 5%.

•Wealth management revenues amounted to $10.9 million, up by $479 thousand, or 5%. Average assets under administration ("AUA") increased by 4%.

•Mortgage banking revenues totaled $3.3 million, down by $251 thousand, or 7%, as increases in gains on sales were offset by changes in fair value on mortgage loans held for sale and forward loan commitments. The change in fair value reflects seasonality in the loan pipeline. Mortgage banking revenues increased by 14% compared to the fourth quarter of 2024.

•Loan related derivative income totaled $1.1 million, up by $810 thousand.

Noninterest Expense

Noninterest expense totaled $38.0 million, up by $2.3 million, or 6%.

•Salaries and employee benefits expense amounted to $23.6 million, up by $973 thousand, or 4%, reflecting higher levels of performance- and volume-based compensation, as well as increased staffing.

•Other noninterest expenses totaled $3.9 million, up by $1.3 million, or 51%, largely due to a $1.0 million contribution made by Washington Trust to its charitable foundation.

Income Tax

Income tax expense totaled $4.7 million, up by $1.6 million. The effective tax rate was 22.7%, compared to 22.2%. The Corporation expects its full-year 2026 effective tax rate to be approximately 22.0%.

FINANCIAL CONDITION (Dec 31, 2025 vs. Sep 30, 2025, unless otherwise noted):

Investment Securities

The securities portfolio totaled $940 million, down by $22 million, or 2%, and remained at 14% of total assets.

Loans

Total loans amounted to $5.1 billion, up by $12 million.

•Commercial loans increased by $23 million, or 1%.

•Residential real estate loans decreased by $23 million, or 1%.

•Consumer loans increased by $12 million, or 4%.

Deposits and Borrowings

Total deposits amounted to $5.3 billion, up by $47 million, or 1%. There were no wholesale brokered deposits at the end of either period. FHLB advances totaled $626 million, down by $165 million, or 21%.

Contingent liquidity amounted to $2.0 billion at the end of 2025 and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.

Capital and Dividends

Total shareholders' equity was $543.6 million, up by $10.6 million, or 2%, reflecting net income and improvement in accumulated other comprehensive loss, which were offset, in part, by quarterly dividend declarations and a net increase in treasury stock.

•In the fourth quarter, the Corporation repurchased 20,855 shares of its common stock, at an average price of $27.03 and a total cost of $564 thousand, under its stock repurchase program.

•The Board of Directors declared a quarterly dividend of 56 cents per share for fourth quarter. The dividend was paid on January 14, 2026 to shareholders of record on January 2, 2026.

•Capital levels exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.95%, compared to 12.90%.

•Book value per share was $28.56, compared to $27.98.

ASSET QUALITY (Dec 31, 2025 vs. Sep 30, 2025, unless otherwise noted):

Credit quality metrics improved in the fourth quarter, with reductions in nonaccrual loans and net charge-offs.

Nonaccrual loans were $12.9 million, or 0.25% of total loans, down from $14.0 million, or 0.27%, and consisted entirely of residential and consumer loans.

Past due loans were $11.4 million, or 0.22% of total loans, up from $8.1 million, or 0.16%, and included $655 thousand of commercial loans and $10.7 million of residential and consumer loans.

The Corporation recorded $160 thousand of net recoveries in the fourth quarter, compared to net charge-offs of $11.4 million in the preceding quarter. The provision for credit losses normalized and totaled $600 thousand in the fourth quarter, compared to $6.8 million in the third quarter.

The allowance for credit losses ("ACL") on loans amounted to $37.2 million, or 0.73% of total loans, compared to $36.6 million, or 0.71%.

Conference Call

Washington Trust will host a conference call to discuss its fourth quarter results, business highlights, and outlook on Thursday, January 29, 2026 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 58400. 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 478781. The audio replay will be available through February 12, 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 March 31, 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 tariffs, inflation, potential 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, 2024, 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 net income available to common shareholders, 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.

(1)See the section labeled “Supplemental Information - Calculation of Non-GAAP Financial Measures” at the end of this document.

(2)Estimated for Dec 31, 2025 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 available for common shareholders divided by average equity.

(8)Total noninterest expense as percentage of total revenues (net interest income and noninterest income).

(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).

(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).

(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.

(1)Approximately 66% of the total commercial real estate office balance of $238 million is secured by income producing properties located in suburban areas. Additionally, approximately 51% of the total commercial real estate office balance is scheduled to mature before Dec 31, 2027.

(2)Balance of commercial real estate office consists of 43 loans as of Dec 31, 2025.

(3)Does not include $3.6 million of unfunded commitments as of Dec 31, 2025.

(4)Total commitment (outstanding loan balance plus unfunded commitments) divided by number of loans.