What changed in this filing

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Item 1. Financial Statements

2025-05-07 compared with 2024-11-07 · 352 added, 420 removed, 1023 unchanged (43% of the section changed)

4 unchanged sentences

(Dollars in thousands, except par value)

September 30,

2025 December 31,

Cash and due from banks $ 33,394 $ 21,534

Interest-earning deposits with correspondent banks 82,804 88,368

Short-term investments 4,041 3,987

Mortgage loans held for sale, at fair value 21,953 21,708

Available for sale debt securities, at fair value (amortized cost of $ 1,098,649 , net of allowance for credit losses on securities of $ 0 at September 30, 2024;

Mortgage loans held for sale, at lower of cost or market — 281,706

Premises and equipment held for sale, lower of cost or market — 4,788

Available for sale debt securities, at fair value (amortized cost of $ 1,033,901 , net of allowance for credit losses on securities of $ 0 at March 31, 2025;

and amortized cost of $ 1,049,557 ;

24 unchanged sentences

authorized 60,000,000 shares;

17,363,457 shares issued and 17,058,413 shares outstanding at September 30, 2024 and 17,363,457 shares issued and 17,030,987 shares outstanding at December 31, 2023

19,561,985 shares issued and 19,276,148 shares outstanding at March 31, 2025 and 19,561,985 shares issued and 19,273,583 shares outstanding at December 31, 2024

Paid-in capital 197,570 196,947

1 unchanged sentence

Accumulated other comprehensive loss ( 99,179 ) ( 119,171 )

Treasury stock, at cost, 305,044 shares at September 30, 2024 and 332,470 shares at December 31, 2023

Treasury stock, at cost, 285,837 shares at March 31, 2025 and 288,402 shares at December 31, 2024

( 13,167 ) ( 13,285 )

6 unchanged sentences

(Dollars and shares in thousands, except per share amounts)

Three Months Nine Months

Periods ended September 30, 2024 2023 2024 2023

Three months ended March 31, 2025 2024

Interest income:

2 unchanged sentences

Taxable interest on debt securities 8,827 7,096

Nontaxable interest on debt securities 7 —

Dividends on Federal Home Loan Bank stock 1,022 1,073

16 unchanged sentences

Income from bank-owned life insurance 769 739

Gain on sale of bank-owned properties, net 6,994 —

Other income 331 2,466

7 unchanged sentences

FDIC deposit insurance costs

1,402 1,185 4,247 3,428

Advertising and promotion 410 548

Amortization of intangibles 204 208

Pension plan settlement charge 6,436 —

Other expenses 2,734 2,324

14 unchanged sentences

(Dollars in thousands)

Three Months Nine Months

Periods ended September 30, 2024 2023 2024 2023

Three months ended March 31, 2025 2024

Net income $ 12,179 $ 10,936

4 unchanged sentences

Total other comprehensive income (loss), net of tax 19,992 ( 7,760 )

Total comprehensive income (loss) $ 40,149 ($ 18,746 ) $ 56,727 $ 14,295

Total comprehensive income $ 32,171 $ 3,176

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3 unchanged sentences

(Dollars and shares in thousands, except per share amounts)

For the three months ended September 30, 2024 Common

Shares Outstanding Common

Stock Paid-in

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury Stock Total

Balance at June 30, 2024 17,058 $ 1,085 $ 125,898 $ 504,350 ($ 146,326 ) ($ 14,050 ) $ 470,957

— — — 10,981 — — 10,981

Total other comprehensive income, net of tax — — — — 29,168 — 29,168

Cash dividends declared ($ 0.56 per share)

— — — ( 9,677 ) — — ( 9,677 )

Share-based compensation — — 800 — — — 800

Balance at September 30, 2024 17,058 $ 1,085 $ 126,698 $ 505,654 ($ 117,158 ) ($ 14,050 ) $ 502,229

For the nine months ended September 30, 2024 Common

For the three months ended March 31, 2025 Common

Shares Outstanding Common

12 unchanged sentences

2 — ( 157 ) — — 118 ( 39 )

Balance at September 30, 2024 17,058 $ 1,085 $ 126,698 $ 505,654 ($ 117,158 ) ($ 14,050 ) $ 502,229

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Washington Trust Bancorp, Inc.

and Subsidiaries

Consolidated Statements of Changes in Shareholders' Equity (unaudited)

(Dollars and shares in thousands, except per share amounts)

For the three months ended September 30, 2023 Common

Shares Outstanding Common

Stock Paid-in

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury Stock Total

Balance at June 30, 2023 17,019 $ 1,085 $ 125,685 $ 496,996 ($ 148,827 ) ($ 15,778 ) $ 459,161

— — — 11,161 — — 11,161

Total other comprehensive loss, net of tax — — — — ( 29,907 ) — ( 29,907 )

Cash dividends declared ($ 0.56 per share)

— — — ( 9,636 ) — — ( 9,636 )

Share-based compensation — — 624 — — — 624

Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered

— — 1 — — — 1

Balance at September 30, 2023 17,019 $ 1,085 $ 126,310 $ 498,521 ($ 178,734 ) ($ 15,778 ) $ 431,404

For the nine months ended September 30, 2023 Common

Balance at March 31, 2025 19,276 $ 1,223 $ 197,570 $ 435,233 ($ 99,179 ) ($ 13,167 ) $ 521,680

For the three months ended March 31, 2024 Common

Shares Outstanding Common

12 unchanged sentences

2 — ( 118 ) — — 101 ( 17 )

Treasury stock purchased under 2023 Repurchase Program

( 200 ) — — — — ( 8,741 ) ( 8,741 )

Balance at September 30, 2023 17,019 $ 1,085 $ 126,310 $ 498,521 ($ 178,734 ) ($ 15,778 ) $ 431,404

Balance at March 31, 2024 17,033 $ 1,085 $ 126,785 $ 503,175 ($ 148,913 ) ($ 15,212 ) $ 466,920

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3 unchanged sentences

(Dollars in thousands)

Nine months ended September 30, 2024 2023

Three months ended March 31, 2025 2024

Cash flows from operating activities:

2 unchanged sentences

Provision for credit losses 1,200 700

Net gain on sale of bank-owned property ( 988 ) —

Gain on sale of bank-owned properties, net ( 6,994 ) —

Depreciation of premises and equipment 894 1,001

1 unchanged sentence

Amortization of intangibles 204 208

Amortization of terminated cash flow hedge loss 2,116 2,138

Pension plan settlement charge 6,436 —

Share-based compensation 780 753

4 unchanged sentences

Loans originated for sale ( 72,919 ) ( 74,643 )

Decrease (increase) in operating lease right-of-use assets 1,752 ( 726 )

(Decrease) increase in operating lease liabilities ( 1,790 ) 996

Decrease in operating lease right-of-use assets 898 148

Decrease in operating lease liabilities ( 866 ) ( 190 )

Decrease (increase) in other assets 6,066 ( 5,806 )

(Decrease) increase in other liabilities ( 1,161 ) 19,913

Decrease in other liabilities ( 13,516 ) ( 1,386 )

Net cash provided by operating activities 8,450 1,948

Cash flows from investing activities:

Purchases of:

Available for sale debt securities:

Mortgage-backed — ( 39,967 )

Available for sale debt securities:

Other ( 1,050 ) ( 20,221 )

Maturities, calls, and principal payments of:

1 unchanged sentence

Mortgage-backed 15,400 15,265

Available for sale debt securities:

Other 500 250

Net purchases of Federal Home Loan Bank stock ( 5,546 ) ( 9,205 )

Net redemptions (purchases) of Federal Home Loan Bank stock 10,918 ( 3,619 )

Net decrease (increase) in loans 38,469 ( 36,251 )

Net proceeds from sale of portfolio loans 283,182 —

Purchases of loans ( 453 ) ( 597 )

Proceeds from the sale of property acquired through foreclosure or repossession 680 —

Purchases of premises and equipment ( 88 ) ( 626 )

Net proceeds from the sale of bank-owned property 1,669 —

Proceeds from bank-owned life insurance — 1,932

Net proceeds from the sale of bank-owned properties 11,780 —

Equity investments in real estate limited partnerships — ( 758 )

2 unchanged sentences

Cash flows from financing activities:

Net (decrease) increase in deposits ( 176,270 ) 396,601

Net decrease in deposits ( 75,219 ) ( 267 )

Proceeds from Federal Home Loan Bank advances 270,000 860,000

Repayments of Federal Home Loan Bank advances ( 545,000 ) ( 810,000 )

Treasury stock purchased — ( 8,741 )

Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered ( 39 ) ( 17 )

1 unchanged sentence

Net cash (used in) provided by financing activities ( 361,058 ) 40,167

Net increase (decrease) in cash and cash equivalents 120,559 ( 5,413 )

Net increase in cash and cash equivalents 6,350 15,404

Cash and cash equivalents at beginning of period 113,889 90,184

Cash and cash equivalents at end of period $ 120,239 $ 105,588

Noncash Activities:

Noncash Investing and Financing Activities:

Loans charged-off $ 2,522 $ 70

Loans transferred to property acquired through foreclosure or repossession — 683

Commitment for equity investments in real estate limited partnerships 178 3,967

Supplemental Disclosures:

17 unchanged sentences

The accompanying Unaudited Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Reclassification

Certain previously reported amounts have been reclassified to conform to the current year’s presentation.

Use of Estimates

4 unchanged sentences

Accounting Standards Pending Adoption

Segment Reporting - Topic 280

Accounting Standards Update No.

2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), was issued in November 2023 to enhance and provide additional transparency on segment disclosures, including disclosure of significant segment expense provided to the chief operating decision maker (“CODM”), as well as disclosing the title and position of the CODM and how they use reported results in assessing segment performance and allocation of resources.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The provisions under ASU 2023-07 should be applied on a retrospective basis.

ASU 2023-07 is not expected to have a material impact on the Corporation’s financial statements.

Income Taxes - Topic 740

1 unchanged sentence

2023-09, “Income Taxes (Topic 740) - Improvements to Income Tax Disclosures” (“ASU 2023-09”), was issued in December 2023 to enhance and provide additional transparency on income tax disclosures.

ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The provisions under ASU 2023-09 should be applied on a prospective basis;

however, retrospective application is also permitted.

ASU 2023-09 is effective for annual periods beginning after December 15, 2024.

The provisions under ASU 2023-09 should be applied on a prospective basis, however retrospective application is also permitted.

ASU 2023-09 is not expected to have a material impact on the Corporation’s financial statements.

Income Statement - Reporting Comprehensive Income - Subtopic 220

Accounting Standards Update No.

2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses” (“ASU 2024-03”), was issued in November 2024 to enhance and provide additional disclosure on certain costs and expenses.

The effective date of ASU 2024-03 was further clarified in a subsequent ASU issued in January 2025.

ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

The provisions under ASU 2024-03 can be applied on either a prospective or retrospective basis.

ASU 2024-03 is not expected to have a material impact on the Corporation’s financial statements.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

3 unchanged sentences

(Dollars in thousands)

September 30, 2024 Amortized Cost Unrealized Gains Unrealized Losses ACL

March 31, 2025 Amortized Cost Unrealized Gains Unrealized Losses ACL

Available for Sale Debt Securities:

Obligations of U.S.

government agencies and U.S.

government-sponsored enterprises $ 41,752 $ 65 ($ 2,565 ) $ — $ 39,252

$ 250,350 $ 57 ($ 18,463 ) $ — $ 231,944

Mortgage-backed securities issued by U.S.

13 unchanged sentences

Obligations of U.S.

government agencies and U.S.

government-sponsored enterprises $ 41,751 $ — ($ 3,139 ) $ — $ 38,612

$ 250,450 $ 15 ($ 24,723 ) $ — $ 225,742

Mortgage-backed securities issued by U.S.

2 unchanged sentences

984,546 52 ( 129,451 ) — 855,147

Obligations of states and political subdivisions

650 5 — — 655

Individual name issuer trust preferred debt securities

3 unchanged sentences

Total available for sale debt securities $ 1,049,557 $ 57 ($ 133,309 ) $ — $ 916,305

Available for sale debt securities balances exclude accrued interest receivable of $ 2.9 million and $ 3.7 million, respectively, as of September 30, 2024 and December 31, 2023.

At September 30, 2024 and December 31, 2023, securities with a fair value of $ 302.3 million and $ 311.9 million, respectively, were pledged as collateral for FHLB borrowings, potential borrowings with the FRBB, certain public deposits, and for other purposes.

See Note 9 for additional disclosure on FHLB borrowings.

Available for sale debt securities balances exclude accrued interest receivable of $ 3.2 million at both March 31, 2025 and December 31, 2024.

At March 31, 2025 and December 31, 2024, securities with a fair value of $ 361.0 million and $ 310.5 million, respectively, were pledged as collateral for FHLB borrowings, potential borrowings with the FRBB, certain public deposits, and for other purposes.

See Note 10 for additional discussion on FHLB borrowings.

The schedule of maturities of available for sale debt securities is presented below.

2 unchanged sentences

Actual maturities may differ from amounts presented because certain issuers have the right to call or prepay obligations with or without call or prepayment penalties.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(Dollars in thousands)

September 30, 2024 Amortized Cost Fair Value

March 31, 2025 Amortized Cost Fair Value

Due in one year or less $ 79,350 $ 70,131

7 unchanged sentences

$ 1,033,901 $ 917,545

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Included in the above table are debt securities with an amortized cost balance of $ 253.6 million and a fair value of $ 234.3 million at September 30, 2024 that are callable at the discretion of the issuers.

Included in the above table are debt securities with an amortized cost balance of $ 50.0 million and a fair value of $ 46.9 million at March 31, 2025 that are callable at the discretion of the issuers.

Final maturities of the callable securities range from 4 months to 20 years, with call features ranging from 1 month to 8 years.

5 unchanged sentences

(Dollars in thousands) Less than 12 Months 12 Months or Longer Total

September 30, 2024 # Fair

March 31, 2025 # Fair

Value Unrealized

4 unchanged sentences

Obligations of U.S.

government agencies and U.S.

government-sponsored enterprises 1 $ 296 ($ 2 ) 6 $ 23,888 ($ 2,563 ) 7 $ 24,184 ($ 2,565 )

3 unchanged sentences

18 67,326 ( 304 ) 93 469,625 ( 113,621 ) 111 536,951 ( 113,925 )

Obligations of states and political subdivisions 1 642 ( 8 ) — — — 1 642 ( 8 )

Individual name issuer trust preferred debt securities

10 unchanged sentences

Obligations of U.S.

government agencies and U.S.

government-sponsored enterprises 2 $ 15,289 ($ 12 ) 6 $ 23,323 ($ 3,127 ) 8 $ 38,612 ($ 3,139 )

1 $ 19,824 ($ 176 ) 20 $ 195,903 ($ 24,547 ) 21 $ 215,727 ($ 24,723 )

Mortgage-backed securities issued by U.S.

6 unchanged sentences

59 $ 399,453 ($ 3,644 ) 106 $ 511,955 ($ 129,665 ) 165 $ 911,408 ($ 133,309 )

There were no debt securities on nonaccrual status at September 30, 2024 and 2023 and, therefore there was no accrued interest related to debt securities reversed against interest income for the three and nine months ended September 30, 2024 and 2023.

As of September 30, 2024, the Corporation does not intend to sell the debt securities in an unrealized loss position and has determined that it is more-likely-than-not that the Corporation will not be required to sell each security before the recovery of its amortized cost basis.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

There were no debt securities on nonaccrual status at March 31, 2025 and 2024 and, therefore there was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2025 and 2024.

As of March 31, 2025, the Corporation does not intend to sell the debt securities in an unrealized loss position and has determined that it is more-likely-than-not that the Corporation will not be required to sell each security before the recovery of its amortized cost basis.

In addition, management does not believe that any of the securities are impaired due to reasons of credit quality.

As further described below, management believes the unrealized losses on these debt securities are primarily attributable to changes in the investment spreads and interest rates.

Therefore, no ACL was recorded at both September 30, 2024 and December 31, 2023.

Therefore, no ACL was recorded at both March 31, 2025 and December 31, 2024.

Obligations of U.S.

2 unchanged sentences

The contractual cash flows for these securities are either explicitly or implicitly guaranteed by the U.S.

government, are

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

highly rated by major credit rating agencies, and have a long history of no credit losses.

The issuers of these securities continue to make timely principal and interest payments, and none of these securities were past due at September 30, 2024.

government, are highly rated by major credit rating agencies, and have a long history of no credit losses.

The issuers of these securities continue to make timely principal and interest payments, and none of these securities were past due at March 31, 2025.

Additionally, the Corporation utilizes a zero credit loss estimate for these securities.

Obligations of States and Political Subdivisions

Obligations of states and political subdivisions consist of a high credit quality (rated AA or higher) state and municipal bond.

High credit quality obligations of state and political subdivisions have a history of zero to near-zero credit losses.

Individual Name Issuer Trust Preferred Debt Securities

These securities in an unrealized loss position at September 30, 2024 included three trust preferred securities issued by three individual companies in the banking sector.

These securities in an unrealized loss position at March 31, 2025 included three trust preferred securities issued by three individual companies in the banking sector.

Management reviewed the collectability of these securities taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting period date, as well as credit rating changes between the reporting period date and the filing date of this report, and other information.

As of September 30, 2024, there was one individual name issuer trust preferred debt security with an amortized cost of $ 2.0 million and unrealized losses of $ 140 thousand that was rated below investment grade by S&P.

We noted no downgrades to below investment grade between September 30, 2024 and the filing date of this report.

As of March 31, 2025, there was one individual name issuer trust preferred debt security with an amortized cost of $ 2.0 million and unrealized losses of $ 74 thousand that was rated below investment grade by S&P.

We noted no downgrades to below investment grade between March 31, 2025 and the filing date of this report.

Based on the information available through the filing date of this report, all individual name issuer trust preferred debt securities continue to accrue interest and make payments as expected with no payment deferrals or defaults on the part of the issuers.

Corporate Bonds

These securities in an unrealized loss position at September 30, 2024 included four corporate bond holdings issued by three individual companies in the financial services industry.

These securities in an unrealized loss position at March 31, 2025 included four corporate bond holdings issued by three individual companies in the financial services industry.

As of September 30, 2024, there was one corporate bond debt security with an amortized cost of $ 2.0 million and unrealized losses of $ 25 thousand that was rated below investment grade by S&P.

We noted no downgrades to below investment grade between September 30, 2024 and the filing date of this report.

As of March 31, 2025, there was one corporate bond debt security with an amortized cost of $ 2.0 million and unrealized losses of $ 10 thousand that was rated below investment grade by S&P.

We noted no downgrades to below investment grade between March 31, 2025 and the filing date of this report.

Based on the information available through the filing date of this report, all corporate bond debt securities continue to accrue interest and make payments as expected with no payment deferrals or defaults on the part of the issuers.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 4 - Loans

The following table presents the carrying value of loans, segregated by class of loans:

(Dollars in thousands) September 30,

(Dollars in thousands) March 31,

2025 December 31, 2024

16 unchanged sentences

(3) Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties.

Also, includes a $ 19 thousand negative basis adjustment associated with fair value hedges at September 30, 2024.

Also, includes negative basis adjustments associated with fair value hedges of $ 699 thousand and $ 1.5 million, respectively, at March 31, 2025 and December 31, 2024.

See Note 7 for additional disclosure.

(4) Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans.

(5) Includes net unamortized loan origination costs of $ 13.4 million and $ 13.0 million, respectively, at September 30, 2024 and December 31, 2023 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $ 249 thousand and $ 286 thousand, respectively, at September 30, 2024 and December 31, 2023.

The carrying value of loans excludes accrued interest receivable of $ 22.6 million and $ 22.9 million, respectively, as of September 30, 2024 and December 31, 2023.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

As of September 30, 2024 and December 31, 2023, loans amounting to $ 3.3 billion and $ 3.4 billion, respectively, were pledged as collateral to the FHLB under a blanket pledge agreement and to the FRBB for the discount window.

(5) Includes net unamortized loan origination costs of $ 11.3 million and $ 10.9 million, respectively, at March 31, 2025 and December 31, 2024 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $ 233 thousand and $ 242 thousand, respectively, at March 31, 2025 and December 31, 2024.

The carrying value of loans excludes accrued interest receivable of $ 20.8 million and $ 22.1 million, respectively, as of March 31, 2025 and December 31, 2024.

As of both March 31, 2025 and December 31, 2024, loans amounting to $ 2.8 billion were pledged as collateral to the FHLB under a blanket pledge agreement and to the FRBB for the discount window.

See Note 10 for additional disclosure regarding borrowings.

3 unchanged sentences

The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy, as well as the health of the real estate economic sector in the Corporation’s market area.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Past Due Loans

2 unchanged sentences

(Dollars in thousands) Days Past Due

September 30, 2024 Current 30-59 60-89 90 or More Total Past Due Total Loans

March 31, 2025 Current 30-59 60-89 90 or More Total Past Due Total Loans

Commercial real estate

23 unchanged sentences

Total loans $ 5,125,856 $ 5,668 $ 3,034 $ 3,280 $ 11,982 $ 5,137,838

Included in past due loans as of September 30, 2024 and December 31, 2023, were nonaccrual loans of $ 18.1 million and $ 6.9 million, respectively.

In addition, all loans 90 days or more past due at September 30, 2024 and December 31, 2023 were classified as nonaccrual.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Included in past due loans as of March 31, 2025 and December 31, 2024, were nonaccrual loans of $ 7.4 million and $ 6.4 million, respectively.

In addition, all loans 90 days or more past due at March 31, 2025 and December 31, 2024 were classified as nonaccrual.

Nonaccrual Loans

5 unchanged sentences

Loans are removed from nonaccrual status when they have been current as to principal and interest (generally for six months), the borrower has demonstrated an ability to comply with repayment terms, and when, in management’s opinion, the loans are considered to be fully collectible.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table is a summary of nonaccrual loans, segregated by class of loans:

(Dollars in thousands) September 30, 2024 December 31, 2023

(Dollars in thousands) March 31, 2025 December 31, 2024

Nonaccrual Loans Nonaccrual Loans

12 unchanged sentences

Accruing loans 90 days or more past due $ — $ —

Nonaccrual loans of $ 13.0 million and $ 37.7 million, respectively, at September 30, 2024 and December 31, 2023 were current as to the payment of principal and interest.

As of September 30, 2024 and December 31, 2023, nonaccrual loans secured by one- to four-family residential property amounting to $ 2.4 million and $ 960 thousand, respectively, were in process of foreclosure.

There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at September 30, 2024.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Nonaccrual loans of $ 14.3 million and $ 16.9 million, respectively, at March 31, 2025 and December 31, 2024 were current as to the payment of principal and interest.

As of March 31, 2025 and December 31, 2024, nonaccrual loans secured by one- to four-family residential properties amounting to $ 1.3 million and $ 1.0 million, respectively, were in process of foreclosure.

There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at March 31, 2025.

The following table presents interest income recognized on nonaccrual loans:

(Dollars in thousands) Three Months Nine Months

Periods ended September 30, 2024 2023 2024 2023

(Dollars in thousands) Interest Income Recognized

Three months ended March 31, 2025 2024

Commercial real estate

$ — $ 474 $ — $ 1,344

Commercial & industrial

2 unchanged sentences

Residential real estate

139 82 332 341

Total consumer 37 35

1 unchanged sentence

Troubled Loan Modifications

In the course of resolving problem loans, the Corporation may choose to modify the contractual terms of certain loans.

A loan that has been modified is considered a TLM when the modification is made to a borrower experiencing financial difficulty and the modification has a direct impact to the contractual cash flows.

The decision to modify a loan, versus aggressively enforcing the collection of the loan, may benefit the Corporation by increasing the ultimate probability of collection.

Modifications to borrowers experiencing financial difficulty may include modified contractual terms that have a direct impact to contractual cash flows, including principal forgiveness, interest rate reductions, maturity extensions, other-than-insignificant payment delays, or any combination thereof.

If both of the aforementioned criteria are met, then the modification is considered a TLM and subject to the enhanced disclosure requirements.

In the course of resolving problem loans, the Corporation may choose to modify the contractual terms of loans to borrowers

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

who are experiencing financial difficulty.

Such modifications to borrowers experiencing financial difficulty may include modified contractual terms that have a direct impact to contractual cash flows, including principal forgiveness, interest rate reductions, maturity extensions, other-than-insignificant payment delays, or any combination thereof.

Debt could be bifurcated with separate terms for each tranche of the TLM.

Executing a TLM in lieu of aggressively enforcing the collection of the loan may benefit the Corporation by increasing the ultimate probability of collection.

Nonaccrual loans that become TLMs generally remain on nonaccrual status for six months, subsequent to being modified, before management considers their return to accrual status.

1 unchanged sentence

If the TLM successfully meets all repayment terms according to the modification documents for a specified period of time (generally 12 months) and the borrower is no longer experiencing financial difficulty, it would be declassified from TLM status.

In addition, if a TLM is subsequently modified and the borrower is no longer experiencing financial difficulty, it would be declassified from TLM status.

During the three months ended September 30, 2024, there were no loans modified as a TLM.

The following table presents the carrying value of TLMs made during the nine months ended September 30, 2024, segregated by class of loans and type of concession granted:

The following table presents the carrying value of TLMs made during the three months ended March 31, 2025, segregated by class of loans and type of concession granted:

(Dollars in thousands)

Maturity Extension Other-than-Insignificant Payment Delay Total % of Loan Class (1)

Commercial real estate $ — $ — $ — — %

Commercial & industrial 616 — 616 —

Total commercial 616 — 616 —

Residential Real Estate:

2 unchanged sentences

(1) Percentage of TLMs to the total loans outstanding within the respective loan class.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents the carrying value of TLMs made during the three and nine months ended September 30, 2023, segregated by class of loans and type of concession granted:

The following table presents the carrying value of TLMs made during the three months ended March 31, 2024, segregated by class of loans and type of concession granted:

(Dollars in thousands)

Maturity Extension Total % of Loan Class (1)

Maturity Extension Other-than-Insignificant Payment Delay Total % of Loan Class (1)

Commercial real estate $ — $ — $ — — %

3 unchanged sentences

(1) Percentage of TLMs to the total loans outstanding within the respective loan class.

The following table describes the financial effect of TLMs made during the nine months ended September 30, 2024, segregated by class of loans:

Nine months ended September 30, 2024

The following table describes the financial effect of TLMs made during the three months ended March 31, 2025, segregated by class of loans:

Three months ended March 31, 2025

Financial Effect

Maturity Extension:

Commercial & industrial Extended maturity by a weighted average of 120 months

Other-than-Insignificant Payment Delay:

Residential real estate Provided payment delay for a weighted average period of 6 months

The following table describes the financial effect of TLMs made during the three and nine months ended September 30, 2023, segregated by class of loans:

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table describes the financial effect of TLMs made during the three months ended March 31, 2024, segregated by class of loans:

Financial Effect

Maturity Extension:

Commercial real estate Extended maturity by a weighted average period of 9 months

Commercial & industrial Provided maturity extension for a weighted average period of 120 months

Management closely monitors the performance of TLMs to understand the effectiveness of the modifications.

The following table presents an aging analysis, as of the date indicated, of TLMs that have been modified in the past 12 months:

As of the dates indicated, the following tables present an aging analysis of TLMs that have been modified in the past 12 months:

(Dollars in thousands) Days Past Due

September 30, 2024 Current 30-59 60-89 90 or More Total Past Due Total Loans

March 31, 2025 Current 30-59 60-89 90 or More Total Past Due Total Loans

Commercial real estate

7 unchanged sentences

Total loans $ 14,291 $ — $ — $ — $ — $ 14,291

There were no TLMs made in the previous 12 months for which there was a subsequent payment default.

There were no significant commitments to lend additional funds to borrowers experiencing financial difficulty whose loans were TLMs at September 30, 2024.

At March 31, 2025, there were no TLMs made in the previous 12 months for which there was a subsequent payment default.

(Dollars in thousands) Days Past Due

March 31, 2024 Current 30-59 60-89 90 or More Total Past Due Total Loans

Commercial real estate

$ 21,692 $ — $ — $ — $ — $ 21,692

Commercial & industrial

668 — — — — 668

Total commercial 22,360 — — — — 22,360

Total loans $ 22,360 $ — $ — $ — $ — $ 22,360

At March 31, 2024, there were no TLMs made in the previous 12 months for which there was a subsequent payment default.

There were no significant commitments to lend additional funds to borrowers experiencing financial difficulty whose loans were TLMs at March 31, 2025.

Individually Analyzed Loans

Individually analyzed loans are individually assessed for credit impairment and include nonaccrual commercial loans, TLMs, as well as certain other loans based on the underlying risk characteristics and the discretion of management to individually analyze such loans.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

As of September 30, 2024 and December 31, 2023, individually analyzed loans amounted to $ 19.9 million and $ 34.6 million, respectively, all of which were considered collateral dependent.

Individually analyzed loans include nonaccrual commercial loans, TLMs, as well as certain other loans based on the underlying risk characteristics and the discretion of management to individually analyze such loans.

As of March 31, 2025 and December 31, 2024, the carrying value of individually analyzed loans amounted to $ 16.2 million and $ 16.6 million, respectively.

The carrying value of collateral dependent individually analyzed loans was $ 11.2 million and $ 11.6 million, respectively, at March 31, 2025 and December 31, 2024.

For collateral dependent loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the loan is to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date.

See Note 8 for additional disclosure regarding fair value of individually analyzed collateral dependent loans.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents the carrying value of collateral dependent individually analyzed loans:

(Dollars in thousands) September 30, 2024 December 31, 2023

(Dollars in thousands) March 31, 2025 December 31, 2024

Carrying Value Related Allowance Carrying Value Related Allowance

2 unchanged sentences

Commercial & industrial (2)

1,140 278 515 259

Total commercial 8,745 701 10,568 1,511

26 unchanged sentences

The loans are closely watched and are either already on nonaccrual status or may be placed on nonaccrual status when management determines there is uncertainty of collectability.

A “doubtful” loan is placed on nonaccrual status and has a high probability of loss, but the extent of the loss is difficult to quantify due to

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

dependency upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty.

A “doubtful” loan is placed on nonaccrual status and has a high probability of loss, but the extent of the loss is difficult to quantify due to dependency upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty.

A loan in the “loss” category is considered generally uncollectible or the timing or amount of payments cannot be determined.

1 unchanged sentence

The Corporation’s procedures call for loan risk ratings and classifications to be revised whenever information becomes available that indicates a change is warranted.

On a quarterly basis, management reviews a watched asset list, which generally consists of commercial loans that are risk-rated 6 or worse, highly leveraged transaction loans, high-volatility commercial real estate, and other selected loans.

On a quarterly basis, management reviews a watched asset list, which generally consists of commercial loans that are risk-rated 6 or worse, highly leveraged transaction loans, high-volatility

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

commercial real estate, and other selected loans.

Management’s review focuses on the current status of the loans, the appropriateness of risk ratings and strategies to improve the credit.

8 unchanged sentences

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table includes information on credit quality indicators and gross charge-offs for the Corporation’s loan portfolio, segregated by class of loans as of September 30, 2024:

The following table includes information on credit quality indicators and gross charge-offs for the Corporation’s loan portfolio, segregated by class of loans as of March 31, 2025:

(Dollars in thousands) Term Loans Amortized Cost by Origination Year

61 unchanged sentences

Total gross charge-offs $ 262 $ 10 $ — $ — $ 2 $ 2,139 $ — $ — $ 2,413

(1) Excludes a $ 1.5 million negative basis adjustment associated with fair value hedges.

See Note 7 for additional disclosure.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

5 unchanged sentences

The level of the ACL on loans is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.

The following table presents the activity in the ACL on loans for the three months ended September 30, 2024:

The following table presents the activity in the ACL on loans for the three months ended March 31, 2025:

(Dollars in thousands) Commercial Consumer

5 unchanged sentences

Ending Balance $ 25,207 $ 7,656 $ 32,863 $ 6,776 $ 1,057 $ 360 $ 1,417 $ 41,056

The following table presents the activity in the ACL on loans for the nine months ended September 30, 2024:

(Dollars in thousands) Commercial Consumer

CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total

Beginning Balance $ 24,144 $ 8,088 $ 32,232 $ 7,403 $ 1,048 $ 374 $ 1,422 $ 41,057

Charge-offs — ( 24 ) ( 24 ) — — ( 158 ) ( 158 ) ( 182 )

Recoveries — 19 19 — 8 28 36 55

Provision 1,614 ( 680 ) 934 660 30 76 106 1,700

Ending Balance $ 25,758 $ 7,403 $ 33,161 $ 8,063 $ 1,086 $ 320 $ 1,406 $ 42,630

The following table presents the activity in the ACL on loans for the three months ended September 30, 2023:

The following table presents the activity in the ACL on loans for the three months ended March 31, 2024:

(Dollars in thousands) Commercial Consumer

5 unchanged sentences

Ending Balance $ 24,856 $ 7,620 $ 32,476 $ 8,035 $ 1,057 $ 337 $ 1,394 $ 41,905

Note 6 - Leases

The Corporation has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception.

Upon commencement of a new lease, a ROU asset and corresponding lease liability is recognized.

The Corporation recognizes an adjustment to the ROU asset and lease liability when lease agreements are amended and executed.

The discount rate used in determining the present value of lease payments is based on the lessor’s implicit rate in the lease if known or the Corporation’s incremental borrowing rate for borrowing terms similar to the lease upon commencement date.

Operating lease ROU assets amounted to $ 36.0 million and $ 26.9 million, respectively, as of March 31, 2025 and December 31, 2024.

Operating lease liabilities totaled $ 38.7 million and $ 29.6 million, respectively, as of March 31, 2025 and December 31, 2024.

In the first quarter of 2025, sales-leaseback transactions were completed for five branch locations and a pre-tax net gain on the sale of the bank-owned properties totaling $ 7.0 million was recognized in noninterest income.

In addition, operating lease ROU assets of $ 10.0 million and operating lease liabilities of $ 10.0 million were recorded on the balance sheet.

The leases expire in 17 years and include options to renew for two additional 15 -year terms.

As of both March 31, 2025 and December 31, 2024, there were no operating leases that had not yet commenced.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents the activity in the ACL on loans for the nine months ended September 30, 2023:

(Dollars in thousands) Commercial Consumer

CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total

Beginning Balance $ 18,435 $ 10,356 $ 28,791 $ 7,740 $ 1,115 $ 381 $ 1,496 $ 38,027

Charge-offs — ( 25 ) ( 25 ) — — ( 132 ) ( 132 ) ( 157 )

Recoveries — 10 10 — 10 23 33 43

Provision 5,250 ( 1,919 ) 3,331 ( 1,022 ) ( 133 ) 124 ( 9 ) 2,300

Ending Balance $ 23,685 $ 8,422 $ 32,107 $ 6,718 $ 992 $ 396 $ 1,388 $ 40,213

The following table presents information regarding the Corporation’s operating leases:

Mar 31, 2025 Dec 31, 2024

Weighted average discount rate 5.27 % 3.80 %

Range of lease expiration dates 1 month - 22 years

4 months - 23 years

Range of lease renewal options

1 year - 15 years

1 year - 5 years

Weighted average remaining lease term

13.7 years 12.6 years

The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at March 31, 2025, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets:

(Dollars in thousands)

April 1, 2025 to December 31, 2025 $ 3,582

2030 and thereafter 35,641

Total operating lease payments 55,110

interest 16,394

Present value of operating lease liabilities (1)

(1) Includes short-term operating lease liabilities of $2.9 million.

The following table presents the components of total lease expense and operating cash flows:

(Dollars in thousands)

Three months ended March 31, 2025 2024

Lease Expense:

Operating lease expense $ 1,271 $ 1,123

Variable lease expense 45 40

Total lease expense (1)

$ 1,316 $ 1,163

Cash paid reducing operating lease liabilities $ 1,239 $ 1,165

(1) Included in net occupancy expenses in the Consolidated Statements of Income.

Note 7 - Derivative Financial Instruments

1 unchanged sentence

Additionally, the Corporation enters into interest rate derivatives to accommodate the business requirements of its customers.

All derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value.

Derivatives are measured at fair value.

Derivative assets are included in other assets.

6 unchanged sentences

An interest rate collar is a derivative instrument that represents simultaneously buying an interest rate cap and selling an interest rate floor.

The credit risk associated with these transactions is the risk of default by the counterparty.

The credit risk

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

associated with these derivative transactions is the risk of default by the counterparty.

To minimize this risk, the Corporation enters into interest rate agreements only with highly rated counterparties that management believes to be creditworthy.

1 unchanged sentence

Cash Flow Hedging Instruments

As of September 30, 2024 and December 31, 2023, the Corporation had interest rate swap contracts that were designated as cash flow hedges.

In addition, at September 30, 2024, the Corporation had an interest rate collar that was designated as a cash flow hedge.

As of March 31, 2025 and December 31, 2024, the Corporation had interest rate swap contracts and an interest rate collar that were designated as cash flow hedges.

These cash flow hedges were executed to hedge the interest rate risk associated with short-term borrowings.

See Note 10 for additional disclosure on borrowings.

On March 31, 2023, the Corporation terminated an interest rate swap contract that was designated as a cash flow hedge to hedge the interest rate risk associated with a pool of variable rate commercial loans.

On the termination date, the derivative liability was derecognized.

The changes in fair value of these derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) and subsequently reclassified to earnings when gains or losses are realized (i.e., in the same period during which the hedged transactions affect earnings.)

The Corporation also had an interest rate swap contract that was designated as a cash flow hedge to hedge the interest rate risk associated with a pool of variable rate commercial loans.

On March 31, 2023, the Corporation terminated this interest rate swap contract and the derivative liability was derecognized.

The loss on this interest rate swap included in the AOCL component of shareholders’ equity was updated to its termination date fair value of $ 26.5 million, or $ 20.1 million after tax.

This loss is being amortized into earnings as a reduction of interest income on a straight-line basis over the remaining life of the original interest rate swap term, or through May 1, 2026.

At September 30, 2024, the remaining unamortized balance of the loss included in the AOCL component of shareholders’ equity was $ 13.6 million, or $ 10.1 million after tax.

The changes in fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) and subsequently reclassified to earnings when gains or losses are realized.

At March 31, 2025, the remaining unamortized balance of the loss included in the AOCL component of shareholders’ equity was $ 9.3 million, or $ 7.0 million after tax.

Fair Value Hedging Instruments

As of September 30, 2024, the Corporation had interest rate swap contracts that were designated as fair value hedges.

As of March 31, 2025 and December 31, 2024, the Corporation had interest rate swap contracts that were designated as fair value hedges.

The fair value hedges were executed to hedge the interest rate risk associated with a closed-pool of fixed-rate residential real estate loans (the “hedged item”).

See Note 4 for additional disclosure on residential real estate loans.

The hedged item is measured at fair value through a basis adjustment recognized on the balance sheet.

The changes in fair

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

value of derivatives designated as fair value hedges, as well as the offsetting changes in fair value of the hedged item are recognized in earnings.

The changes in fair value of derivatives designated as fair value hedges, as well as the offsetting changes in fair value of the hedged item are recognized in earnings.

Loan Related Derivative Contracts

16 unchanged sentences

Interest rate lock commitments are extended to borrowers and relate to the origination of mortgage loans held for sale.

To mitigate the interest rate risk and pricing risk associated with rate locks and mortgage loans held for sale, the Corporation enters into forward sale commitments.

Forward sale commitments are contracts for delayed delivery or net settlement of the underlying instrument, such as a residential real estate mortgage loan, where the seller agrees to deliver on a specified future date, either a specified instrument at a specified price or yield or the net cash equivalent of an underlying instrument.

Both interest rate lock commitments and forward sale commitments are derivative financial instruments, but do not meet criteria for hedge accounting and therefore, the changes in fair value of these commitments are recognized in earnings.

To mitigate the interest rate risk and pricing risk associated with rate locks and mortgage loans that are originated and intended for sale, the Corporation enters into forward sale commitments.

Forward sale commitments are contracts for delayed delivery or net settlement of the underlying instrument, such as a residential mortgage loan, where the seller agrees to deliver on a

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

specified future date, either a specified instrument at a specified price or yield or the net cash equivalent of an underlying instrument.

The following table presents the notional amounts and fair values of derivative instruments in the Unaudited Consolidated Balance Sheets:

(Dollars in thousands) September 30, 2024 December 31, 2023

(Dollars in thousands) March 31, 2025 December 31, 2024

Fair Value Fair Value

26 unchanged sentences

Net amounts $ 40,659 $ 40,250 $ 54,302 $ 51,663

(1) The fair value of derivative assets includes accrued interest receivable of $ 218 thousand and $ 239 thousand, respectively, at September 30, 2024 and December 31, 2023.

There was no accrued interest payable included in the fair value of derivative liabilities at September 30, 2024 or at December 31, 2023.

(1) The fair value of derivative assets includes accrued interest receivable of $ 75 thousand and $ 120 thousand, respectively, at March 31, 2025 and December 31, 2024.

There was no accrued interest payable included in the fair value of derivative liabilities at March 31, 2025 or at December 31, 2024.

(2) Interest rate risk management contracts and loan related derivative contracts with counterparties are subject to master netting arrangements.

1 unchanged sentence

Washington Trust may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions.

The following table presents the balance sheet location, carrying value, and cumulative basis adjustment of the hedged item associated with fair value hedges:

(Dollars in thousands)

March 31, 2025 December 31, 2024

Balance Sheet Location Carrying Value of Hedged Item (1)

Cumulative Basis Adjustment Carrying Value of Hedged Item (1)

Cumulative Basis Adjustment

Residential real estate loans $ 99,301 ($ 699 ) $ 98,519 ($ 1,481 )

(1) Represents the carrying value of the hedged item associated with fair value hedges on a closed-pool of fixed-rate residential real estate loans that are expected to be outstanding for the designated hedged periods.

The amortized cost balance of the closed-pool of residential real estate loans used in the fair value hedges was $ 644.8 million and $ 733.2 million, respectively, at March 31, 2025 and December 31, 2024.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents the effect of derivative instruments in the Unaudited Consolidated Statements of Changes in Shareholders’ Equity:

1 unchanged sentence

Other Comprehensive Income (Loss), Net of Tax

Three Months Nine Months

Periods ended September 30, 2024 2023 2024 2023

Three months ended March 31, 2025 2024

Derivatives Designated as Cash Flow Hedging Instruments:

4 unchanged sentences

Total $ 593 $ 3,205

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents the effect of derivative instruments in the Unaudited Consolidated Statements of Income:

1 unchanged sentence

Recognized in the Unaudited Consolidated Statements of Income

Three Months Nine Months

Periods ended September 30, Statement of Income Location 2024 2023 2024 2023

Three months ended March 31, Statement of Income Location 2025 2024

Derivatives Designated as Cash Flow Hedging Instruments:

4 unchanged sentences

FHLB advances

487 631 1,475 1,022

Derivatives Designated as Fair Value Hedging Instruments:

19 unchanged sentences

The Corporation uses fair value measurements to record fair value adjustments on certain assets and liabilities and to determine fair value disclosures.

Items recorded at fair value on a recurring basis include securities available for sale, mortgage loans held for sale, and derivatives.

Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as collateral dependent individually analyzed loans.

Items recorded at fair value on a recurring basis include securities available for sale, mortgage loans that are originated and intended for sale to the secondary market, and derivatives.

Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as collateral dependent individually analyzed loans, loan servicing rights, property acquired through foreclosure or repossession, and mortgage loans reclassified to held for sale from portfolio.

Fair value is a market-based measurement, not an entity-specific measurement.

Fair value measurements are determined based on the assumptions the market participants would use in pricing the asset or liability.

In addition, GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information, or “inputs”, are observable or unobservable.

In addition, GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information, or “inputs”, are observable or

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

unobservable.

Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Corporation’s market assumptions.

7 unchanged sentences

GAAP allows for the irrevocable option to elect fair value accounting for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis.

The Corporation has elected the fair value option for mortgage loans held for sale to better match changes in fair value of the loans with changes in the fair value of the forward sale commitment contracts used to economically hedge them.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The Corporation has elected the fair value option for mortgage loans that are originated and intended for sale to the secondary market to better match changes in fair value of the loans with changes in the fair value of the forward sale commitment contracts used to economically hedge them.

The following table presents a summary of mortgage loans held for sale accounted for under the fair value option:

(Dollars in thousands) September 30,

(Dollars in thousands) March 31,

2025 December 31,

4 unchanged sentences

Changes in fair value of mortgage loans held for sale accounted for under the fair value option election are included in mortgage banking revenues in the Unaudited Consolidated Statements of Income.

Changes in fair value amounted to decreases in mortgage banking revenues of $ 31 thousand and $ 122 thousand, respectively, for the three and nine months ended September 30, 2024.

This compared to decreases in mortgage banking revenues of $ 39 thousand and $ 21 thousand, respectively, for the three and nine months ended September 30, 2023.

There were no mortgage loans held for sale 90 days or more past due as of September 30, 2024 and December 31, 2023.

Valuation Techniques

Debt Securities

Changes in fair value amounted to an increase in mortgage banking revenues of $ 225 thousand for the three months ended March 31, 2025.

This compared to a decrease in mortgage banking revenues of $ 69 thousand for the three months ended March 31, 2024.

There were no mortgage loans held for sale 90 days or more past due as of March 31, 2025 and December 31, 2024.

Valuation Techniques for Items Recorded at Fair Value on a Recurring Basis

Available for Sale Debt Securities

Available for sale debt securities are recorded at fair value on a recurring basis.

1 unchanged sentence

such items are classified as Level 1.

There were no Level 1 debt securities held at September 30, 2024 and December 31, 2023.

There were no Level 1 debt securities held at March 31, 2025 and December 31, 2024.

Level 2 debt securities are traded less frequently than exchange-traded instruments.

3 unchanged sentences

Debt securities not actively traded whose fair value is determined through the use of cash flows utilizing inputs that are unobservable are classified as Level 3.

There were no Level 3 debt securities held at September 30, 2024 and December 31, 2023.

Mortgage Loans Held for Sale

The Corporation has elected the fair value option for mortgage loans held for sale.

There were no Level 3 debt securities held at March 31, 2025 and December 31, 2024.

Mortgage Loans Held for Sale, at Fair Value

The Corporation has elected the fair value option for mortgage loans that are originated and intended for sale to the secondary market.

The fair value is estimated based on current market prices for similar loans in the secondary market and therefore are classified as Level 2 assets.

Collateral Dependent Individually Analyzed Loans

Collateral dependent individually analyzed loans are valued based upon the lower of amortized cost or fair value.

Fair value is determined based on the appraised value of the underlying collateral.

Such collateral primarily consists of real estate and, to a lesser extent, other business assets.

For collateral dependent loans that are expected to be repaid substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell.

Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the collateral.

Internal valuations may be utilized to determine the fair value of other business assets.

Collateral dependent individually analyzed loans are categorized as Level 3.

Loan Servicing Rights

Loans sold with the retention of servicing result in the recognition of loan servicing rights.

Loan servicing rights are included in other assets in the Unaudited Consolidated Balance Sheets and are amortized as an offset to mortgage banking revenues over the estimated period of servicing.

Loan servicing rights are evaluated quarterly for impairment based on their fair value.

Impairment exists if the carrying value exceeds the estimated fair value.

Impairment is measured on an aggregated basis by stratifying the loan servicing rights based on homogeneous characteristics such as note rate and loan type.

The fair value is estimated using an independent valuation model that estimates the present value of expected cash flows, incorporating assumptions for discount rates and prepayment rates.

Any impairment is recognized through a valuation allowance and as a reduction to mortgage banking revenues.

Loan servicing rights are categorized as Level 3.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Interest rate derivative contracts are traded in over-the-counter markets where quoted market prices are not readily available.

Fair value measurements are determined using independent valuation software, which utilizes the present value of future cash flows discounted using market observable inputs such as forward rate assumptions.

The Corporation evaluates the credit risk of its counterparties, as well as that of the Corporation.

The Corporation evaluates

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

the credit risk of its counterparties, as well as that of the Corporation.

Accordingly, factors such as the likelihood of default by the Corporation and its counterparties, its net exposures, and remaining contractual life are considered in determining if any fair value adjustments related to credit risk are required.

2 unchanged sentences

However, the credit valuation adjustments utilize Level 3 inputs.

As of September 30, 2024 and December 31, 2023, the Corporation has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation.

As of March 31, 2025 and December 31, 2024, the Corporation has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation.

As a result, the Corporation has classified its derivative valuations in their entirety as Level 2.

Fair value measurements of forward loan commitments (interest rate lock commitments and forward sale commitments) are primarily based on current market prices for similar assets in the secondary market for mortgage loans and therefore are classified as Level 2 assets.

The fair value of interest rate lock commitments is also dependent on the ultimate closing of the loans.

7 unchanged sentences

(Level 2) Significant Unobservable Inputs

September 30, 2024

March 31, 2025

Available for sale debt securities:

Obligations of U.S.

government-sponsored enterprises

$ 231,944 $ — $ 231,944 $ —

government agencies and U.S government sponsored enterprises $ 39,252 $ — $ 39,252 $ —

Mortgage-backed securities issued by U.S.

19 unchanged sentences

Obligations of U.S.

government-sponsored enterprises

$ 225,742 $ — $ 225,742 $ —

government agencies and U.S government sponsored enterprises $ 38,612 $ — $ 38,612 $ —

Mortgage-backed securities issued by U.S.

2 unchanged sentences

855,147 — 855,147 —

Obligations of states and political subdivisions

Individual name issuer trust preferred debt securities

7 unchanged sentences

Total liabilities at fair value on a recurring basis $ 51,663 $ — $ 51,663 $ —

Valuation Techniques for Items Recorded at Fair Value on a Nonrecurring Basis

Collateral Dependent Individually Analyzed Loans

Collateral dependent individually analyzed loans are valued based upon the lower of amortized cost or fair value.

Fair value is determined based on the appraised value of the underlying collateral.

Such collateral primarily consists of real estate and, to a lesser extent, other business assets.

For collateral dependent loans that are expected to be repaid substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell.

Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the collateral.

Internal valuations may be utilized to determine the fair value of other business assets.

Collateral dependent individually analyzed loans are categorized as Level 3.

Mortgage Loans Held for Sale, at Lower of Cost or Market

Pursuant to the terms of a sales agreement effective December 30, 2024, the Bank had committed to sell residential mortgage loans with an amortized cost balance of $344.6 million that were held in portfolio.

These loans were reclassified to held for sale and written down to a fair value of $281.7 million in December 2024.

The fair value of these loans was based on the terms of the sales agreement with an unrelated third party and therefore are categorized as Level 2.

The sale of these loans was completed on January 24, 2025.

Items Recorded at Fair Value on a Nonrecurring Basis

The following table presents the carrying value of assets held at September 30, 2024, which were written down to fair value

during the nine months ended September 30, 2024:

The following table presents the carrying value of assets held at March 31, 2025, which were written down to fair value during the three months ended March 31, 2025:

(Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets

1 unchanged sentence

(Level 2) Significant Unobservable Inputs

Collateral dependent individually analyzed loan $ 9,976 $ — $ — $ 9,976

Loan servicing rights 7,773 — — 7,773

Collateral dependent individually analyzed loans $ 4,405 $ — $ — $ 4,405

Total assets at fair value on a nonrecurring basis $ 4,405 $ — $ — $ 4,405

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents the carrying value of assets held at December 31, 2024, which were written down to fair value during the year ended December 31, 2024.

3 unchanged sentences

Collateral dependent individually analyzed loans $ 9,057 $ — $ — $ 9,057

Loan servicing rights 8,512 — — 8,512

Mortgage loans held for sale, at lower of cost or market 281,706 — 281,706 —

Total assets at fair value on a nonrecurring basis $ 290,763 $ — $ 281,706 $ 9,057

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring

2 unchanged sentences

(Weighted Average)

September 30, 2024

Collateral dependent individually analyzed loan $ 9,976 Appraisals of collateral Discount for costs to sell 2 %

March 31, 2025

Collateral dependent individually analyzed loans $ 4,405 Appraisals of collateral Discount for costs to sell 14 % - 15 % ( 15 %)

Appraisal adjustments 0 % - 60 % ( 3 %)

Loan servicing rights 7,773 Discounted cash flow Discount rates 10 % - 14 % ( 10 %)

Prepayment rates 5 % - 42 % ( 9 %)

(Dollars in thousands) Fair Value Valuation Technique Unobservable Input Inputs Utilized

3 unchanged sentences

Appraisal adjustments 0 % - 10 % ( 7 %)

Loan servicing rights 8,512 Discounted cash flow Discount rates 10 % - 14 % ( 10 %)

Prepayment rates 6 % - 53 % ( 9 %)

Items for which Fair Value is Only Disclosed

1 unchanged sentence

(Dollars in thousands)

September 30, 2024 Carrying Amount Total

March 31, 2025 Carrying Amount Total

Fair Value Quoted Prices in Active Markets for Identical Assets

26 unchanged sentences

5,095,878 4,952,110 — — 4,952,110

49,817 49,817 — 49,817 —

Investment in BOLI

6 unchanged sentences

Junior subordinated debentures 22,681 19,602 — 19,602 —

(1) The estimated fair value excludes a $ 1.5 million negative basis adjustment associated with fair value hedges.

See Note 7 for additional disclosure.

Note 9 - Deposits

The following table presents a summary of deposits:

(Dollars in thousands) September 30,

(Dollars in thousands) March 31,

2025 December 31,

10 unchanged sentences

Total deposits $ 5,040,581 $ 5,115,800

(1) Includes wholesale brokered time deposit balances of $ 380.0 million and $ 654.1 million, respectively, as of September 30, 2024 and December 31, 2023.

(1) Includes wholesale brokered time deposit balances of $ 27.2 million and $ 297.5 million, respectively, as of March 31, 2025 and December 31, 2024.

The following table presents scheduled maturities of time certificates of deposit:

(Dollars in thousands) Scheduled Maturity Weighted Average Rate

October 1, 2024 to December 31, 2024 $ 566,377 4.41 %

April 1, 2025 to December 31, 2025 $ 932,475 3.94 %

2026 223,777 3.48

3 unchanged sentences

2030 and thereafter 1,583 1.92

Balance at September 30, 2024 $ 1,587,623 4.32 %

Time certificates of deposit in denominations of $250 thousand or more totaled $ 330.9 million and $ 271.2 million, respectively, at September 30, 2024 and December 31, 2023.

Balance at March 31, 2025 $ 1,240,610 3.80 %

Time certificates of deposit in denominations of $250 thousand or more totaled $ 362.3 million and $ 353.9 million,

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

respectively, at March 31, 2025 and December 31, 2024.

Note 10 - Borrowings

Advances payable to the FHLB amounted to $ 1.3 billion and $ 1.2 billion, respectively, at September 30, 2024 and December 31, 2023.

At September 30, 2024, the Corporation had interest rate swaps with a notional amount of $ 120.0 million, as well as an interest rate collar with a notional amount of $ 50.0 million, that were designated as cash flow hedges to hedge the interest rate risk associated with short-term FHLB advances.

See Note 6 for additional disclosure on derivatives.

The Bank had available borrowing capacity of $ 931.0 million and $ 1.1 billion, respectively, with the FHLB at September 30, 2024 and December 31, 2023.

Advances payable to the FHLB amounted to $ 850.0 million and $ 1.1 billion, respectively, at March 31, 2025 and December 31, 2024.

See Note 7 for additional disclosure on derivatives designated as cash flow hedges to hedge the interest rate risk associated with short-term FHLB advances.

The Bank pledges certain qualified investment securities and loans as collateral to the FHLB.

In addition, the Bank had access to a $ 40.0 million unused line of credit with the FHLB at both September 30, 2024 and December 31, 2023.

Furthermore, the Bank had standby letters of credit with the FHLB of $ 66.0 million and $ 65.0 million, respectively, at September 30, 2024 and December 31, 2023, to collateralize institutional deposits.

The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of September 30, 2024:

As of March 31, 2025 and December 31, 2024, the Bank had available borrowing capacity of $ 1.0 billion and $ 753.0 million, respectively, with the FHLB.

In addition, the Bank had access to a $ 40.0 million unused line of credit with the FHLB at both March 31, 2025 and December 31, 2024.

Furthermore, the Bank had standby letters of credit with the FHLB of $ 66.0 million at both March 31, 2025 and December 31, 2024 to collateralize institutional deposits.

The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of March 31, 2025:

(Dollars in thousands) Scheduled

Maturity Weighted

October 1, 2024 to December 31, 2024 $ 450,000 5.38 %

April 1, 2025 to December 31, 2025 $ 475,000 4.77 %

2026 165,000 4.54

3 unchanged sentences

2030 and thereafter — —

Balance at September 30, 2024 $ 1,300,000 4.96 %

Note 10 - Shareholders' Equity

Stock Repurchase Program

The 2024 Repurchase Program authorizes the repurchase of up to 850,000 shares, or approximately 5 %, of the Bancorp’s outstanding common stock.

This authority may be exercised from time to time and in such amounts as market conditions warrant, and subject to regulatory considerations.

The timing and actual numbers of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities.

The 2024 Repurchase Program commenced on January 1, 2024 and expires on December 31, 2024, and may be modified, suspended, or discontinued at any time.

As of September 30, 2024, no shares have been repurchased under the 2024 Repurchase Program.

Balance at March 31, 2025 $ 850,000 4.57 %

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 11 - Shareholders' Equity

Regulatory Capital Requirements

Capital levels at September 30, 2024 exceeded the regulatory minimum levels to be considered “well capitalized.”

Capital levels at March 31, 2025 exceeded the regulatory minimum levels to be considered “well capitalized.”

The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios, as well as the corresponding minimum and well capitalized regulatory amounts and ratios that were in effect during the respective periods:

1 unchanged sentence

Amount Ratio Amount Ratio Amount Ratio

September 30, 2024

March 31, 2025

Total Capital (to Risk-Weighted Assets):

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The Corporation and the Bank must maintain the capital conservation buffer to avoid restrictions on the ability to pay dividends and discretionary bonuses.

The Corporation’s and the Bank’s capital levels exceeded the minimum regulatory capital requirements plus the capital conservation buffer at September 30, 2024 and December 31, 2023.

The Corporation’s and the Bank’s capital levels exceeded the minimum regulatory capital requirements plus the capital conservation buffer at March 31, 2025 and December 31, 2024.

The Bancorp owns the common stock of two capital trusts, which have issued trust preferred securities.

In accordance with GAAP, the capital trusts are treated as unconsolidated subsidiaries.

At both September 30, 2024 and December 31, 2023, $ 22.0 million in trust preferred securities were included in the Tier 1 capital of the Corporation for regulatory capital reporting purposes pursuant to the capital adequacy guidelines of the Federal Reserve.

In accordance with regulatory capital rules, the Corporation elected the option to delay the estimated impact of ASC 326 on its regulatory capital over a two-year deferral and subsequent three-year transition period ending December 31, 2024.

At both March 31, 2025 and December 31, 2024, $ 22.0 million in trust preferred securities were included in the Tier 1 capital of the Corporation for regulatory capital reporting purposes pursuant to the capital adequacy guidelines of the Federal Reserve.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

result, capital ratios exclude the full impact of the increased ACL on loans and unfunded loan commitments attributed to the adoption of ASC 326, adjusted for an approximation of the after-tax provision for credit losses attributable to ASC 326 relative to the incurred loss methodology during the two-year deferral period.

The cumulative difference at the end of the deferral period is being phased-in to regulatory capital over the three-year transition period, which began January 1, 2022.

As a result, the December 31, 2024 capital ratios in the table above excluded the full impact of the increased ACL on loans and unfunded loan commitments attributed to the adoption of ASC 326, adjusted for an approximation of the after-tax provision for credit losses attributable to ASC 326 relative to the incurred loss methodology during the two-year deferral period.

The cumulative difference quantified at the end of the deferral period was fully phased-in to regulatory capital on January 1, 2025.

Note 12 - Revenue from Contracts with Customers

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As shown below, a substantial portion of our revenues are specifically excluded from the scope of ASC 606.

For the three months ended September 30, 2024 2023

For the three months ended March 31, 2025 2024

(Dollars in thousands) Revenue (1)

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Loan related derivative income

126 — 1,082 —

Income from bank-owned life insurance

Gain on sale of bank-owned properties, net (3)

6,994 6,994 — —

Total noninterest income 16,272 12,407 15,226 11,218

Total revenues $ 48,534 $ 12,407 $ 48,977 $ 11,218

(1) As reported in the Unaudited Consolidated Statements of Income.

(2) Revenue from contracts with customers in scope of ASC 606.

For the nine months ended September 30, 2024 2023

(Dollars in thousands) Revenue (1) ASC 606 Revenue (2)

Revenue (1) ASC 606 Revenue (2)

Net interest income $ 95,512 $ — $ 104,444 $ —

Noninterest income:

Wealth management revenues 29,005 29,005 26,659 26,659

Mortgage banking revenues 8,133 — 5,106 —

Card interchange fees 3,741 3,741 3,667 3,667

Service charges on deposit accounts 2,238 2,238 2,118 2,118

Loan related derivative income 459 — 1,278 —

Income from bank-owned life insurance 2,262 — 2,754 —

Other income 4,257 869 1,252 949

331 264 2,466 270

Total noninterest income 22,643 19,402 17,163 11,438

2 unchanged sentences

(2) Revenue from contracts with customers in scope of ASC 606.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(3) Included herein in accordance with sales-leaseback transaction provisions of ASC 842 and ASC 606.

The following table presents revenue from contracts with customers based on the timing of revenue recognition:

(Dollars in thousands) Three Months Nine Months

Periods ended September 30, 2024 2023 2024 2023

(Dollars in thousands)

Three months ended March 31, 2025 2024

Revenue recognized at a point in time:

1 unchanged sentence

Service charges on deposit accounts 463 425

Gain on sale of bank-owned properties, net 6,994 —

Other income 204 211

1 unchanged sentence

Wealth management revenues

9,989 8,948 29,005 26,659

Service charges on deposit accounts

282 251 821 712

60 62 178 185

Total revenues from contracts with customers in scope of ASC 606

1 unchanged sentence

Receivables for revenue from contracts with customers primarily consist of amounts due for wealth management services performed for which the Corporation’s performance obligations have been fully satisfied.

Receivables amounted to $ 5.9 million and $ 5.5 million, respectively, at September 30, 2024 and December 31, 2023 and were included in other assets in the Unaudited Consolidated Balance Sheets.

Receivables amounted to $ 5.9 million and $ 6.0 million, respectively, at March 31, 2025 and December 31, 2024 and were included in other assets in the Unaudited Consolidated Balance Sheets.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Deferred revenues, which are considered contract liabilities under ASC 606, represent advance consideration received from customers for which the Corporation has a remaining performance obligation to fulfill.

Contract liabilities are recognized as revenue over the life of the contract as the performance obligations are satisfied.

The balances of contract liabilities were insignificant at both September 30, 2024 and December 31, 2023 and were included in other liabilities in the Unaudited Consolidated Balance Sheets.

For commission and incentive costs that are in scope of ASC 606, such as those paid to employees in our wealth management services and commercial banking segments in order to obtain customer contracts, contract cost assets are established.

The balances of contract liabilities were insignificant at both March 31, 2025 and December 31, 2024 and were included in other liabilities in the Unaudited Consolidated Balance Sheets.

For commissions and incentives that are in scope of ASC 606, such as those paid to employees in our wealth management services and commercial banking segments in order to obtain customer contracts, contract cost assets are established.

The contract cost assets are capitalized and amortized over the estimated useful life that the asset is expected to generate benefits.

The carrying value of contract cost assets amounted to $ 2.0 million at both September 30, 2024 and December 31, 2023 and were included in other assets in the Unaudited Consolidated Balance Sheets.

The carrying value of contract cost assets amounted to $ 2.0 million and $ 2.1 million, respectively at March 31, 2025 and December 31, 2024 and were included in other assets in the Unaudited Consolidated Balance Sheets.

The amortization of contract cost assets is recorded within salaries and employee benefits expense in the Unaudited Consolidated Statements of Income.

Note 13 - Defined Benefit Pension Plans

Washington Trust maintains a qualified pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007.

Washington Trust maintained a qualified pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007.

Washington Trust also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans.

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In the fourth quarter of 2023, the Corporation’s Board of Directors approved a resolution to terminate the qualified pension plan, and participants were notified of the termination.

Work on the qualified pension plan termination process continues to progress and the qualified pension plan’s assets are expected to be distributed in 2025, pending completion of applicable regulatory approvals.

The qualified pension plan liability is expected to be settled in 2025 through a combination of lump sum payments to participants and purchase of a group annuity contract from a highly-rated insurance company.

Upon settlement in 2025, the Corporation expects to recognize a pre-tax pension settlement charge that will include a non-cash charge for the recognition of all pre-tax actuarial losses accumulated in AOCL at that time.

The actual amount of the settlement charge will depend on various factors, including interest rates, plan asset returns, the lump sum election rate and annuity pricing.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

In the first quarter of 2025, the qualified pension plan liability was settled after plan assets were distributed through a combination of lump sum payments to participants and the purchase of a group annuity contract from a highly-rated insurance company.

This resulted in a pre-tax non-cash pension settlement charge of $ 6.4 million being recognized in noninterest expenses in the first quarter of 2025.

The settlement charge included the recognition of pre-tax actuarial losses accumulated in AOCL and the effects of the remeasurement of plan assets and liabilities upon settlement.

As a result of the plan’s over-funded status, remaining surplus plan assets of approximately $ 10.3 million are expected to be transferred directly to the Corporation’s 401(k) Plan (a qualified replacement plan) to fund future non-elective employer contributions.

The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis:

(Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans

Three Months Nine Months Three Months Nine Months

Periods ended September 30, 2024 2023 2024 2023 2024 2023 2024 2023

Three months ended March 31, 2025 2024 2025 2024

Net Periodic Benefit Cost:

6 unchanged sentences

Recognized net actuarial loss (2)

— — — — 31 59 92 178

Net periodic benefit cost before settlement ( 19 ) ( 70 ) 192 193

Pension plan settlement charge 6,436 — — —

Net periodic benefit cost $ 6,417 ($ 70 ) $ 192 $ 193

2 unchanged sentences

(2) Included in other expenses in the Unaudited Consolidated Statements of Income.

The following table presents the measurement date and weighted-average assumptions used to determine net periodic benefit cost:

Qualified Pension Plan Non-Qualified Retirement Plans

For the nine months ended September 30, 2024 2023 2024 2023

Measurement date Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022

Equivalent single discount rate for benefit obligations 4.51 % 5.54 % 5.15 % 5.50 %

Equivalent single discount rate for service cost N/A 5.60 N/A 5.61

Equivalent single discount rate for interest cost 4.51 5.43 5.11 5.40

Expected long-term return on plan assets 4.75 5.25 N/A N/A

Rate of compensation increase 0.50 5.00 N/A 5.00

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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The Corporation manages its operations through two reportable business segments, consisting of Commercial Banking and Wealth Management Services.

Management uses an allocation methodology to allocate income and expenses to the business lines.

The Corporation’s reportable business segments are determined by the Senior Executive Vice President, Chief Financial Officer and Treasurer, the designated CODM.

An allocation methodology is utilized to allocate income and expenses to the business segments.

Direct activities are assigned to the appropriate business segment to which the activity relates.

Indirect activities, such as corporate, technology and other support functions, are allocated to business segments primarily based upon full-time equivalent employee computations.

Commercial Banking

The Commercial Banking segment includes commercial, residential, and consumer lending activities;

1 unchanged sentence

deposit generation;

cash management activities;

banking activities, including customer support and the operation of ATMs, telephone banking, internet banking, and mobile banking services;

cash management services;

other banking activities, including customer support and the operation of ATMs, telephone banking, internet banking, and mobile banking services;

as well as investment portfolio and wholesale funding activities.

Wealth Management Services

The Wealth Management Services segment includes investment management;

Wealth management services and operations are provided through the Bank and its registered investment adviser subsidiary.

The Wealth Management Services segment provides investment management;

holistic financial planning services;

2 unchanged sentences

and institutional trust services, including custody and fiduciary services.

The following tables present the statement of operations and total assets for Washington Trust’s reportable segments:

(Dollars in thousands) Commercial Banking Wealth Management Services Consolidated Total

Three months ended September 30, 2024 2023 2024 2023 2024 2023

Net interest income $ 32,262 $ 33,741 $ — $ 10 $ 32,262 $ 33,751

Provision for credit losses 200 500 — — 200 500

Net interest income after provision for credit losses 32,062 33,241 — 10 32,062 33,251

Noninterest income 6,177 6,105 10,095 9,121 16,272 15,226

Noninterest expenses:

Depreciation and amortization expense 878 892 306 346 1,184 1,238

Other noninterest expenses 26,523 25,719 6,797 7,433 33,320 33,152

Total noninterest expenses 27,401 26,611 7,103 7,779 34,504 34,390

Income before income taxes 10,838 12,735 2,992 1,352 13,830 14,087

Income tax expense 2,193 2,621 656 305 2,849 2,926

Net income $ 8,645 $ 10,114 $ 2,336 $ 1,047 $ 10,981 $ 11,161

Total assets at period end $ 7,082,826 $ 7,127,117 $ 58,745 $ 56,358 $ 7,141,571 $ 7,183,475

Expenditures for long-lived assets 1,271 498 2 6 1,273 504

The CODM evaluates the financial performance of each business segment, which is measured based upon the business segment’s net income.

Components of net income for the business segments that are reviewed by the CODM include net interest income, provision for credit losses, noninterest income, noninterest expense, and income tax expense.

The CODM, in conjunction with management committees (such as the ALCO) and certain members of executive management, evaluates financial performance to make decisions related to the products and services that are offered, pricing, and the allocation of resources, for each business segment.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following tables presents the components of net income, as well as other supplemental information for Washington Trust’s reportable business segments:

(Dollars in thousands) Commercial Banking Wealth Management Services Consolidated Total

Nine months ended September 30, 2024 2023 2024 2023 2024 2023

Three months ended March 31, 2025 2024 2025 2024 2025 2024

Total interest income and dividend income $ 79,463 $ 85,256 $ — $ — $ 79,463 $ 85,256

Total interest expense 43,041 53,591 — — 43,041 53,591

Net interest income 36,422 31,665 — — 36,422 31,665

3 unchanged sentences

Noninterest expenses:

Depreciation and amortization expense 2,663 2,582 934 1,059 3,597 3,641

Other noninterest expenses 78,690 74,801 20,490 22,528 99,180 97,329

Salaries and employee benefits 16,979 16,570 5,443 5,205 22,422 21,775

Outsourced services 3,265 2,848 1,081 932 4,346 3,780

Net occupancy 2,471 2,306 270 255 2,741 2,561

Equipment 815 901 76 119 891 1,020

Legal, audit and professional fees 527 590 223 116 750 706

FDIC deposit insurance costs

1,262 1,441 — — 1,262 1,441

Advertising and promotion 348 466 62 82 410 548

Amortization of intangibles — — 204 208 204 208

Other expenses 6,879 1,911 2,291 413 9,170 2,324

Total noninterest expenses 32,546 27,033 9,650 7,330 42,196 34,363

2 unchanged sentences

Net income $ 11,964 $ 7,598 $ 215 $ 3,338 $ 12,179 $ 10,936

Supplemental Information:

Total assets at period end $ 6,525,532 $ 7,190,644 $ 60,483 $ 58,480 $ 6,586,015 $ 7,249,124

Expenditures for long-lived assets 87 556 1 70 88 626

Depreciation expense (1)

808 892 86 109 894 1,001

(1) Included in net occupancy and equipment expenses in the table above.

For the three months ended March 31, 2025, noninterest income for the Commercial Banking segment included a $ 7.0 million net gain associated with sales-leaseback transactions that were completed for five branch locations.

See additional disclosure regarding the sale-leaseback transactions in Note 6.

Also, for the three months ended March 31, 2025, total other expenses included a $ 6.4 million pension plan settlement charge, of which $ 4.9 million was included in the Commercial Banking segment and $ 1.5 million was included in the Wealth Management Services segment.

See additional disclosure regarding the pension plan settlement charge in Note 13.

For the three months ended March 31, 2024, noninterest income for the Wealth Management Services segment included income of $ 2.1 million associated with a litigation settlement.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 15 - Other Comprehensive Income (Loss)

The following tables present the activity in other comprehensive income (loss):

Three months ended September 30, 2024 2023

(Dollars in thousands) Pre-tax Amounts Income Tax Expense Net of Tax Pre-tax Amounts Income Tax Benefit (Expense) Net of Tax

The following table presents the activity in other comprehensive income (loss):

Three months ended March 31, 2025 2024

(Dollars in thousands) Pre-tax Amounts Income Tax Benefit (Expense) Net of Tax Pre-tax Amounts Income Tax Benefit (Expense) Net of Tax

Available for Sale Debt Securities:

5 unchanged sentences

Defined Benefit Plan Obligations:

Amortization of net actuarial losses 31 ( 9 ) 22 59 ( 14 ) 45

Total other comprehensive income (loss) $ 39,152 ($ 9,984 ) $ 29,168 ($ 39,351 ) $ 9,444 ($ 29,907 )

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Nine months ended September 30, 2024 2023

(Dollars in thousands) Pre-tax Amounts Income Tax Benefit (Expense) Net of Tax Pre-tax Amounts Income Tax Expense Net of Tax

Securities available for sale:

Change in fair value of available for sale debt securities $ 26,866 ($ 6,851 ) $ 20,015 ($ 38,703 ) $ 9,289 ($ 29,414 )

Cash flow hedges:

Change in fair value of cash flow hedges

283 ( 73 ) 210 4,938 ( 1,185 ) 3,753

Net cash flow hedge losses reclassified into earnings 4,966 ( 1,264 ) 3,702 6,043 ( 1,451 ) 4,592

Net change in fair value of cash flow hedges 5,249 ( 1,337 ) 3,912 10,981 ( 2,636 ) 8,345

Defined benefit plan obligations:

Amortization of net actuarial losses 92 ( 24 ) 68 178 ( 43 ) 135

Defined benefit plan obligation remeasurement 2,665 ( 728 ) 1,937 — — —

Pension plan settlement charge reclassified into earnings 6,436 ( 1,625 ) 4,811 — — —

Amortization of net actuarial losses into earnings 29 ( 8 ) 21 31 ( 8 ) 23

Net change in defined benefit plan obligations 9,130 ( 2,361 ) 6,769 31 ( 8 ) 23

Total other comprehensive income (loss) $ 26,819 ($ 6,827 ) $ 19,992 ($ 10,416 ) $ 2,656 ($ 7,760 )

The following tables present the changes in AOCL by component, net of tax:

(Dollars in thousands) Net Unrealized Losses on Available For Sale Debt Securities Net Unrealized Losses on Cash Flow Hedges Net Unrealized Losses on Defined Benefit Plan Obligations Total

For the three months ended September 30, 2024

Balance at June 30, 2024 ($ 126,830 ) ($ 10,599 ) ($ 8,897 ) ($ 146,326 )

Other comprehensive income (loss) before reclassifications 30,254 ( 2,358 ) — 27,896

Amounts reclassified from AOCL

— 1,250 22 1,272

Net other comprehensive income (loss) 30,254 ( 1,108 ) 22 29,168

Balance at September 30, 2024 ($ 96,576 ) ($ 11,707 ) ($ 8,875 ) ($ 117,158 )

The following table presents the changes in AOCL by component, net of tax:

(Dollars in thousands) Net Unrealized Losses on Available For Sale Debt Securities Net Unrealized Losses on Cash Flow Hedges Net Unrealized Losses on Defined Benefit Plan Obligations Total

For the nine months ended September 30, 2024

For the three months ended March 31, 2025

Balance at December 31, 2024 ($ 102,439 ) ($ 7,938 ) ($ 8,794 ) ($ 119,171 )

Other comprehensive income before reclassifications 20,015 210 — 20,225

Other comprehensive income (loss) before reclassifications 12,630 ( 844 ) 1,937 13,723

Amounts reclassified from AOCL

1 unchanged sentence

Net other comprehensive income 12,630 593 6,769 19,992

Balance at September 30, 2024 ($ 96,576 ) ($ 11,707 ) ($ 8,875 ) ($ 117,158 )

(Dollars in thousands) Net Unrealized Losses on Available For Sale Debt Securities Net Unrealized Losses on Cash Flow Hedges Net Unrealized Losses on Defined Benefit Plan Obligations Total

For the three months ended September 30, 2023

Balance at June 30, 2023 ($ 127,662 ) ($ 17,133 ) ($ 4,032 ) ($ 148,827 )

Other comprehensive (loss) income before reclassifications ( 32,785 ) 1,669 — ( 31,116 )

Amounts reclassified from AOCL

— 1,164 45 1,209

Net other comprehensive (loss) income ( 32,785 ) 2,833 45 ( 29,907 )

Balance at September 30, 2023 ($ 160,447 ) ($ 14,300 ) ($ 3,987 ) ($ 178,734 )

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Balance at March 31, 2025 ($ 89,809 ) ($ 7,345 ) ($ 2,025 ) ($ 99,179 )

(Dollars in thousands) Net Unrealized Losses on Available For Sale Debt Securities Net Unrealized Losses on Cash Flow Hedges Net Unrealized Losses on Defined Benefit Plan Obligations Total

For the nine months ended September 30, 2023

For the three months ended March 31, 2024

Balance at December 31, 2023 ($ 116,591 ) ($ 15,619 ) ($ 8,943 ) ($ 141,153 )

3 unchanged sentences

Net other comprehensive (loss) income ( 10,988 ) 3,205 23 ( 7,760 )

Balance at September 30, 2023 ($ 160,447 ) ($ 14,300 ) ($ 3,987 ) ($ 178,734 )

Balance at March 31, 2024 ($ 127,579 ) ($ 12,414 ) ($ 8,920 ) ($ 148,913 )

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 16 - Earnings per Common Share

1 unchanged sentence

(Dollars and shares in thousands, except per share amounts)

Three Months Nine Months

Periods ended September 30, 2024 2023 2024 2023

Earnings for basic and diluted earnings per common share:

Three months ended March 31, 2025 2024

Earnings for basic and diluted EPS calculations:

Net income $ 12,179 $ 10,936

1 unchanged sentence

Net income available to common shareholders $ 12,179 $ 10,924

Shares for basic and diluted EPS calculations:

Weighted average common shares outstanding for basic EPS

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Dilutive effect of common stock equivalents 94 41

Weighted average common shares outstanding for diluted EPS

17,140 17,041 17,115 17,063

Earnings per common share:

$ 0.64 $ 0.65 $ 1.92 $ 2.06

Weighted average common and potential common shares outstanding for diluted EPS

19,370 17,074

Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 403,995 and 450,943 , respectively, for the three and nine months ended September 30, 2024, compared to 468,524 and 452,472 , respectively, for the same periods in 2023.

Basic earnings per common share $ 0.63 $ 0.64

Diluted earnings per common share $ 0.63 $ 0.64

Awards excluded from the calculation of diluted EPS:

Weighted average anti-dilutive common stock equivalents (1)

(1) For the three months ended 2025 and 2024, weighted average anti-dilutive common stock equivalents represent share-based compensation awards not included in the calculation of common shares outstanding for purposes of calculating diluted EPS as the grant prices were greater than the average market price of Bancorp’s common stock, and therefore were anti-dilutive.

Note 17 - Commitments and Contingencies

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Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.

Since some of the commitments are expected to expire without being drawn upon, total commitment

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

amounts do not necessarily represent future cash requirements.

Since some of the commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements.

Each borrower’s creditworthiness is evaluated on a case-by-case basis.

6 unchanged sentences

Most standby letters of credit extend for one year.

At September 30, 2024 and December 31, 2023, there were no liabilities to beneficiaries resulting from standby letters of credit.

At March 31, 2025 and December 31, 2024, there were no liabilities to beneficiaries resulting from standby letters of credit.

Should the Corporation be required to make payments to the beneficiary, repayment from the customer to the Corporation is required.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents the contractual and notional amounts of financial instruments with off-balance sheet risk:

(Dollars in thousands) September 30,

(Dollars in thousands) March 31,

2025 December 31,

4 unchanged sentences

The ACL on unfunded commitments is management’s estimate of expected lifetime credit losses over the expected contractual term in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation.

The activity in the ACL on unfunded commitments for the three months ended September 30, 2024 is presented below:

The activity in the ACL on unfunded commitments for the three months ended March 31, 2025 is presented below:

(Dollars in thousands) Commercial Consumer

3 unchanged sentences

Ending Balance $ 694 $ 518 $ 1,212 $ 17 $ — $ 11 $ 11 $ 1,240

The activity in the ACL on unfunded commitments for the nine months ended September 30, 2024 is presented below:

(Dollars in thousands) Commercial Consumer

CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total

Beginning Balance $ 1,091 $ 822 $ 1,913 $ 15 $ — $ 12 $ 12 $ 1,940

Provision ( 261 ) ( 45 ) ( 306 ) 7 — ( 1 ) ( 1 ) ( 300 )

Ending Balance $ 830 $ 777 $ 1,607 $ 22 $ — $ 11 $ 11 $ 1,640

The activity in the ACL on unfunded commitments for the three months ended September 30, 2023 is presented below:

The activity in the ACL on unfunded commitments for the three months ended March 31, 2024 is presented below:

(Dollars in thousands) Commercial Consumer

3 unchanged sentences

Ending Balance $ 943 $ 771 $ 1,714 $ 15 $ — $ 11 $ 11 $ 1,740

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The activity in the ACL on unfunded commitments for the nine months ended September 30, 2023 is presented below:

(Dollars in thousands) Commercial Consumer

CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total

Beginning Balance $ 1,236 $ 988 $ 2,224 $ 50 $ — $ 16 $ 16 $ 2,290

Provision ( 140 ) ( 120 ) ( 260 ) ( 36 ) — ( 4 ) ( 4 ) ( 300 )

Ending Balance $ 1,096 $ 868 $ 1,964 $ 14 $ — $ 12 $ 12 $ 1,990

Other Contingencies

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements