What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 230 added, 532 removed, 1113 unchanged (41% of the section changed)

4 unchanged sentences

(Dollars in thousands, except par value)

September 30,

2026 December 31,

3 unchanged sentences

Mortgage loans held for sale, at fair value 32,127 35,833

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 $ 1,063,157 , net of allowance for credit losses on securities of $ 0 at September 30, 2025;

Available for sale debt securities, at fair value (amortized cost of $ 1,008,600 , net of allowance for credit losses on securities of $ 0 at March 31, 2026;

and amortized cost of $ 1,035,205 ;

24 unchanged sentences

authorized 60,000,000 shares;

19,561,985 shares issued and 19,050,016 shares outstanding at September 30, 2025 and 19,561,985 shares issued and 19,273,583 shares outstanding at December 31, 2024

19,561,985 shares issued and 19,040,844 shares outstanding at March 31, 2026 and 19,561,985 shares issued and 19,034,935 shares outstanding at December 31, 2025

Paid-in capital 198,654 198,323

1 unchanged sentence

Accumulated other comprehensive loss ( 78,435 ) ( 79,309 )

Treasury stock, at cost, 511,969 shares at September 30, 2025 and 288,402 shares at December 31, 2024

Treasury stock, at cost;

521,141 shares at March 31, 2026 and 527,050 shares at December 31, 2025

( 19,177 ) ( 19,394 )

6 unchanged sentences

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

Three Months Nine Months

Periods ended September 30, 2025 2024 2025 2024

Three months ended March 31, 2026 2025

Interest income:

31 unchanged sentences

FDIC deposit insurance costs

1,055 1,402 3,552 4,247

Advertising and promotion 547 410

6 unchanged sentences

Net income $ 12,600 $ 12,179

Net income available to common shareholders $ 10,846 $ 10,973 $ 36,270 $ 32,732

Weighted average common shares outstanding - basic 19,039 19,276

8 unchanged sentences

(Dollars in thousands)

Three Months Nine Months

Periods ended September 30, 2025 2024 2025 2024

Three months ended March 31, 2026 2025

Net income $ 12,600 $ 12,179

10 unchanged sentences

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

For the three months ended September 30, 2025 Common

Shares Outstanding Common

Stock Paid-in

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury Stock Total

Balance at June 30, 2025 19,283 $ 1,223 $ 197,392 $ 437,520 ($ 95,949 ) ($ 12,667 ) $ 527,519

— — — 10,846 — — 10,846

Total other comprehensive income, net of tax — — — — 11,121 — 11,121

Cash dividends declared ($ 0.56 per share)

— — — ( 10,821 ) — — ( 10,821 )

Share-based compensation — — 833 — — — 833

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

4 — ( 167 ) — — 126 ( 41 )

Treasury stock purchased under 2025 Repurchase Program

( 237 ) — — — — ( 6,436 ) ( 6,436 )

Balance at September 30, 2025 19,050 $ 1,223 $ 198,058 $ 437,545 ($ 84,828 ) ($ 18,977 ) $ 533,021

For the nine months ended September 30, 2025 Common

For the three months ended March 31, 2026 Common

Shares Outstanding Common

12 unchanged sentences

6 — ( 320 ) — — 217 ( 103 )

Treasury stock purchased under 2025 Repurchase Program

( 247 ) — — — — ( 6,732 ) ( 6,732 )

Balance at September 30, 2025 19,050 $ 1,223 $ 198,058 $ 437,545 ($ 84,828 ) ($ 18,977 ) $ 533,021

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, 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

Balance at March 31, 2026 19,041 $ 1,223 $ 198,654 $ 444,508 ($ 78,435 ) ($ 19,177 ) $ 546,773

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

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

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

3 unchanged sentences

(Dollars in thousands)

Nine months ended September 30, 2025 2024

Three months ended March 31, 2026 2025

Cash flows from operating activities:

20 unchanged sentences

Cash flows from investing activities:

Purchases of:

Available for sale debt securities:

Mortgage-backed ( 74,869 ) —

Available for sale debt securities:

Other ( 736 ) ( 1,050 )

Maturities, calls, and principal payments of:

3 unchanged sentences

Other 2,000 —

Net redemptions (purchases) of Federal Home Loan Bank stock 13,486 ( 5,546 )

Net redemptions of Federal Home Loan Bank stock 1,200 10,918

Net decrease in loans 120,889 38,469

1 unchanged sentence

Purchases of loans ( 501 ) ( 453 )

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

Purchases of premises and equipment ( 1,306 ) ( 88 )

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

Purchases of bank-owned life insurance ( 5,000 ) —

Purchase of intangible asset in asset acquisition ( 2,180 ) —

Equity investments in real estate limited partnerships ( 67 ) —

2 unchanged sentences

Cash flows from financing activities:

Net increase (decrease) in deposits 107,036 ( 176,270 )

Net decrease in deposits ( 105,357 ) ( 75,219 )

Proceeds from Federal Home Loan Bank advances 635,000 270,000

Repayments of Federal Home Loan Bank advances ( 685,000 ) ( 545,000 )

Treasury stock purchased ( 6,732 ) —

Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered ( 103 ) ( 39 )

1 unchanged sentence

Net cash used in by financing activities ( 166,152 ) ( 361,058 )

Net increase in cash and cash equivalents 78,442 120,559

Net (decrease) increase in cash and cash equivalents ( 3,550 ) 6,350

Cash and cash equivalents at beginning of period 103,734 113,889

5 unchanged sentences

Interest payments $ 35,329 $ 49,732

Income tax payments 28 6,976

Income taxes paid 3,395 23

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

14 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, 2025.

Reclassification

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

Use of Estimates

3 unchanged sentences

Note 2 - Recently Issued Accounting Pronouncements

Accounting Standards Pending Adoption

Income Taxes - Topic 740

Accounting Standards Adopted in 2026

Financial Instruments - Credit Losses - Topic 326

Accounting Standards Update No.

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 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.

2025-05, “Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets” (“ASU 2025-05”) was issued in July 2025 to introduce a practical expedient intended to simplify the estimation of expected credit losses on current accounts receivable and contract assets arising from revenue transactions under ASC 606.

The practical expedient permits entities to assume that current conditions as of the reporting date remain unchanged for the remaining life of the asset.

ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted.

The Corporation adopted the provisions of ASU 2025-05 on a prospective basis.

The adoption of ASU 2025-05 did not have a material impact on the Corporation’s financial statements.

Accounting Standards Pending Adoption

Income Statement - Reporting Comprehensive Income - Subtopic 220

1 unchanged sentence

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.

The effective date of ASU 2024-03 was further clarified in ASU 2025-01, which was subsequently 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.

2 unchanged sentences

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Financial Instruments - Credit Losses - Topic 326

Accounting Standards Update No.

2025-05, “Financial Instruments - Credit Losses (Topic 326):

The practical expedient permits entities to assume that current conditions as of the reporting date remain unchanged for the remaining life of the asset.

ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years, with early adoption permitted.

The provisions under ASU 2025-05 should be applied on a prospective basis.

ASU 2025-05 is not expected to have a material impact on the Corporation’s financial statements.

Intangibles - Goodwill and Other - Internal-Use Software - Subtopic 350

9 unchanged sentences

The Corporation is currently evaluating the impact of ASU 2025-06 on its financial statements.

Derivatives and Hedging - Topic 815

Accounting Standards Update No.

2025‑09, “Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements” (“ASU 2025-09”) was issued in November 2025 to make targeted amendments to the hedge accounting guidance to better align accounting outcomes with an entity’s risk management activities and to clarify certain aspects of the guidance originally amended by ASU 2017‑12.

The amendments primarily affect cash flow hedges, but also include limited changes related to fair value hedges and net investment hedges.

Among other things, ASU 2025-09 expands the ability to hedge groups of forecasted transactions with similar risk exposures, provides a framework to facilitate hedge accounting for forecasted interest payments on variable‑rate debt instruments that permit changes to the reference rate and tenor, clarifies hedge accounting for forecasted purchases and sales of nonfinancial assets, updates guidance related to net written options used as hedging instruments, and addresses certain recognition and presentation matters involving foreign currency‑denominated debt used in multiple hedging relationships.

ASU 2025-09 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those periods, with early adoption permitted.

The amendments are required to be applied on a prospective basis, with transition provisions that allow certain hedging relationships to continue without de-designation.

The Corporation is currently evaluating the impact of ASU 2025-09 on its financial statements.

Interim Reporting - Topic 270

Accounting Standards Update No.

2025‑11, “Interim Reporting (Topic 270):

Narrow‑Scope Improvements” (“ASU 2025-11”) was issued in December 2025 to clarify the scope and applicability of interim reporting guidance, reorganize and clarify interim disclosure requirements, and introduce a disclosure principle requiring entities to disclose events occurring since the end of the most recent annual reporting period that have a material impact on the entity.

The amendments are intended to improve clarity and consistency in interim reporting and do not change the underlying recognition or measurement requirements under U.S.

ASU 2025‑11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The amendments can either be applied on a prospective or retrospective basis.

ASU 2025-11 is not expected to have a material impact on the Corporation’s financial statements.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 3 - Securities

2 unchanged sentences

(Dollars in thousands)

September 30, 2025 Amortized Cost Unrealized Gains Unrealized Losses ACL

March 31, 2026 Amortized Cost Unrealized Gains Unrealized Losses ACL

Available for Sale Debt Securities:

13 unchanged sentences

Total available for sale debt securities $ 1,008,600 $ 3,677 ($ 100,319 ) $ — $ 911,958

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(Dollars in thousands)

15 unchanged sentences

Total available for sale debt securities $ 1,035,205 $ 5,208 ($ 100,071 ) $ — $ 940,342

Available for sale debt securities balances exclude accrued interest receivable of $ 3.3 million and $ 3.2 million, respectively, as of September 30, 2025 and December 31, 2024.

At September 30, 2025 and December 31, 2024, securities with a fair value of $ 399.0 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.

Available for sale debt securities balances exclude accrued interest receivable of $ 2.3 million and $ 3.1 million, respectively, as of March 31, 2026 and December 31, 2025.

At March 31, 2026 and December 31, 2025, securities with a fair value of $ 377.6 million and $ 392.4 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 discussion on FHLB borrowings.

3 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, 2025 Amortized Cost Fair Value

March 31, 2026 Amortized Cost Fair Value

Due in one year or less $ 116,027 $ 105,359

7 unchanged sentences

$ 1,008,600 $ 911,958

Included in the above table are debt securities with an amortized cost balance of $ 47.0 million and a fair value of $ 44.5 million at September 30, 2025 that are callable at the discretion of the issuers.

Final maturities of the callable securities range from 2 months to 19 years, with call features ranging from 1 month to 8 years.

Included in the above table are debt securities with an amortized cost balance of $ 44.7 million and a fair value of $ 42.2 million at March 31, 2026 that are callable at the discretion of the issuers.

Final maturities of the callable securities range from 1 year to 19 years, with call features ranging from 1 month to 7 years.

Assessment of Available for Sale Debt Securities for Impairment

3 unchanged sentences

The following tables summarize available for sale debt securities in an unrealized loss position, for which an ACL on securities has not been recorded, segregated by length of time that the securities have been in a continuous unrealized loss position:

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

September 30, 2025 # Fair

March 31, 2026 # Fair

Value Unrealized

32 unchanged sentences

3 $ 2,130 ($ 6 ) 99 $ 493,660 ($ 100,065 ) 102 $ 495,790 ($ 100,071 )

There were no debt securities on nonaccrual status at September 30, 2025 and 2024 and, therefore there was no accrued interest related to debt securities reversed against interest income for the three and nine months ended September 30, 2025 and 2024.

As of September 30, 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.

There were no debt securities on nonaccrual status at March 31, 2026 and 2025 and, therefore there was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2026 and 2025.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

As of March 31, 2026, 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, 2025 and December 31, 2024.

Therefore, no ACL was recorded at both March 31, 2026 and December 31, 2025.

Obligations of U.S.

3 unchanged sentences

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 September 30, 2025.

The issuers of these securities continue to make timely principal and interest payments, and none of these securities were past due at March 31, 2026.

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

Individual Name Issuer Trust Preferred Debt Securities

These securities in an unrealized loss position at September 30, 2025 included two trust preferred securities issued by two individual companies in the banking sector.

These securities in an unrealized loss position at March 31, 2026 included two trust preferred securities issued by two 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, 2025, there was one individual name issuer trust preferred debt security with an amortized cost of $ 2.0 million and unrealized losses of $ 66 thousand that was rated below investment grade by S&P.

We noted no downgrades to below investment grade between September 30,

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

2025 and the filing date of this report.

As of March 31, 2026, there was one individual name issuer trust preferred debt security with an amortized cost of $ 2.0 million and unrealized losses of $ 69 thousand that was rated below investment grade by S&P.

We noted no downgrades to below investment grade between March 31, 2026 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, 2025 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, 2026 included three corporate bond holdings issued by two individual companies in the financial services industry.

As of September 30, 2025, there was one corporate bond debt security with an amortized cost of $ 2.0 million and unrealized losses of $ 7 thousand that was rated below investment grade by S&P.

We noted no downgrades to below investment grade between September 30, 2025 and the filing date of this report.

As of March 31, 2026, there were no corporate bond debt securities that were rated below investment grade by S&P.

We noted no downgrades to below investment grade between March 31, 2026 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,

2026 December 31, 2025

16 unchanged sentences

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

Also, includes negative basis adjustments associated with fair value hedges of $ 255 thousand and $ 1.5 million, respectively, at September 30, 2025 and December 31, 2024.

Also, includes negative basis adjustments associated with fair value hedges of $ 923 thousand and $ 335 thousand, respectively, at March 31, 2026 and December 31, 2025.

See Note 6 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 $ 11.6 million and $ 10.9 million, respectively, at September 30, 2025 and December 31, 2024 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $ 211 thousand and $ 242 thousand, respectively, at September 30, 2025 and December 31, 2024.

The carrying value of loans excludes accrued interest receivable of $ 21.0 million and $ 22.1 million, respectively, as of September 30, 2025 and December 31, 2024.

As of both September 30, 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.

(5) Includes net unamortized loan origination costs of $ 11.3 million and $ 11.0 million, respectively, at March 31, 2026 and December 31, 2025 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $ 193 thousand and $ 198 thousand, respectively, at March 31, 2026 and December 31, 2025.

The carrying value of loans excludes accrued interest receivable of $ 19.5 million and $ 20.1 million, respectively, as of March 31, 2026 and December 31, 2025.

As of both March 31, 2026 and December 31, 2025, loans amounting to $ 2.9 billion were pledged as collateral to the FHLB under a blanket pledge agreement and to the FRBB for the discount window.

See Note 9 for additional disclosure regarding borrowings.

8 unchanged sentences

(Dollars in thousands) Days Past Due

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

March 31, 2026 Current 30-59 60-89 90 or More Total Past Due Total Loans

Commercial real estate

23 unchanged sentences

Total loans $ 5,123,005 $ 5,309 $ 2,726 $ 3,348 $ 11,383 $ 5,134,388

Included in past due loans as of September 30, 2025 and December 31, 2024, were nonaccrual loans of $ 5.9 million and $ 6.4 million, respectively.

In addition, all loans 90 days or more past due at September 30, 2025 and December 31, 2024 were classified as nonaccrual.

Included in past due loans as of March 31, 2026 and December 31, 2025, were nonaccrual loans of $ 12.3 million and $ 8.3 million, respectively.

In addition, all loans 90 days or more past due at March 31, 2026 and December 31, 2025 were classified as nonaccrual.

Nonaccrual Loans

7 unchanged sentences

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

(Dollars in thousands) September 30, 2025 December 31, 2024

(Dollars in thousands) March 31, 2026 December 31, 2025

Nonaccrual Loans Nonaccrual Loans

12 unchanged sentences

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

Nonaccrual loans of $ 8.1 million and $ 16.9 million, respectively, at September 30, 2025 and December 31, 2024 were current as to the payment of principal and interest.

As of September 30, 2025 and December 31, 2024, nonaccrual loans secured by one- to four-family residential properties amounting to $ 1.4 million and $ 1.0 million, respectively, were in process of foreclosure.

Nonaccrual loans of $ 28.1 million and $ 4.6 million, respectively, at March 31, 2026 and December 31, 2025 were current as to the payment of principal and interest.

As of March 31, 2026 and December 31, 2025, nonaccrual loans secured by one- to four-family residential properties amounting to $ 2.0 million and $ 3.0 million, respectively, were in process of foreclosure.

The following table presents interest income recognized on nonaccrual loans:

(Dollars in thousands) Three Months Nine Months

Periods ended September 30, 2025 2024 2025 2024

(Dollars in thousands)

Three months ended March 31, 2026 2025

Commercial real estate

$ — $ — $ — $ —

Commercial & industrial

2 unchanged sentences

Residential real estate

131 139 415 332

47 36 139 106

Total consumer 22 37

4 unchanged sentences

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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.

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.

2 unchanged sentences

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.

The following tables present the carrying value at September 30, 2025 of TLMs made during the periods indicated, segregated by class of loans and type of concession granted:

(Dollars in thousands)

Three months ended September 30, 2025 Other-than-Insignificant Payment Delay Total % of Loan Class (1)

Commercial real estate $ 5,412 $ 5,412 — %

Commercial & industrial — — —

Total commercial 5,412 5,412 —

Residential Real Estate:

Residential real estate $ 263 $ 263 — %

Total $ 5,675 $ 5,675 — %

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

(Dollars in thousands)

Nine months ended September 30, 2025 Other-than-Insignificant Payment Delay Total % of Loan Class (1)

Commercial real estate $ 5,412 $ 5,412 — %

Commercial & industrial — — —

Total commercial 5,412 5,412 —

Residential Real Estate:

Residential real estate $ 1,684 $ 1,684 — %

Total $ 7,096 $ 7,096 — %

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

In addition, a CRE loan with a carrying value of $ 4.3 million at June 30, 2025 was previously modified as a TLM.

A combination of concessions were granted including an interest rate reduction, maturity extension and other-than-insignificant payment delay.

In September 2025, the Corporation decided to sell this loan and late in September, the sale closed, proceeds of $ 1.2 million were received, and a charge-off of $ 3.0 million was recognized.

As such, this TLM is no longer included in disclosures presenting the carrying value of TLMs at September 30, 2025.

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

There were no loans modified as a TLM for the three months ended March 31, 2026.

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

(Dollars in thousands)

Nine months ended September 30, 2024

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

Commercial real estate $ — $ — $ — — %

Commercial & industrial 616 — 616 —

Total commercial 616 — 616 —

Three months ended March 31, 2025 Other-than-Insignificant Payment Delay Total % of Loan Class (1)

Residential Real Estate:

2 unchanged sentences

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

The following tables describe the financial effect of TLMs made during the periods indicated, segregated by class of loans:

Three months ended September 30, 2025

Financial Effect

Other-than-Insignificant Payment Delay:

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

Other-than-Insignificant Payment Delay:

Residential real estate Provided payment delay for a weighted average period of 4 months

Nine months ended September 30, 2025

Financial Effect

Other-than-Insignificant Payment Delay:

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

Other-than-Insignificant Payment Delay:

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

Nine months ended September 30, 2024

Financial Effect

Maturity Extension:

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

The following table describes the financial effect of TLMs made during the periods indicated, segregated by class of loans:

Three months ended March 31, 2025 Financial Effect

Other-than-Insignificant Payment Delay:

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

1 unchanged sentence

(Dollars in thousands) Days Past Due

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

March 31, 2026 Current 30-59 60-89 90 or More Total Past Due Total Loans

Commercial real estate

1 unchanged sentence

Commercial & industrial

5,000 — — — — 5,000

Total commercial 5,605 — — — — 5,605

3 unchanged sentences

Total loans $ 6,238 $ — $ — $ — $ — $ 6,238

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(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

At both September 30, 2025 and September 30, 2024, there were no TLMs made in the previous 12 months for which there was a subsequent payment default.

See additional disclosure above regarding a CRE TLM loan that was sold and charged off in the third quarter of 2025.

There were no significant commitments to lend additional funds to borrowers experiencing financial difficulty whose loans were TLMs at September 30, 2025.

At both March 31, 2026 and March 31, 2025, 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 modified as TLMs at March 31, 2026.

Individually Analyzed Loans

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 September 30, 2025 and December 31, 2024, the carrying value of individually analyzed loans amounted to $ 14.1 million and $ 16.6 million, respectively.

The carrying value of collateral dependent individually analyzed loans was $ 7.7 million and $ 11.6 million, respectively, at September 30, 2025 and December 31, 2024.

As of March 31, 2026 and December 31, 2025, the carrying value of individually analyzed loans amounted to $ 37.6 million and $ 8.9 million, respectively.

The carrying value of collateral dependent individually analyzed loans was $ 13.8 million and $ 7.5 million, respectively, at March 31, 2026 and December 31, 2025.

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 7 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, 2025 December 31, 2024

(Dollars in thousands) March 31, 2026 December 31, 2025

Carrying Value Related Allowance Carrying Value Related Allowance

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Commercial & industrial (2)

1,010 — 515 259

Total commercial 12,179 1,500 5,605 —

2 unchanged sentences

1,631 — 1,903 —

Home equity (3)

Total consumer 3 3 — —

Total $ 13,813 $ 1,503 $ 7,508 $ —

2 unchanged sentences

(3) Secured by one- to four-family residential properties.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Credit Quality Indicators

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This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10.

Additionally, ratings 7 through 10 are considered criticized, as defined by regulatory agencies.

The loan risk rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, the adequacy of collateral, the adequacy of guarantees, and other credit quality characteristics.

18 unchanged sentences

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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 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.

6 unchanged sentences

LTV is estimated based on such factors as geographic location, the original appraised value, and changes in median home prices, and takes into consideration the age of the loan.

The results of these analyses and other credit review procedures, including selected targeted internal reviews, are taken into account in the determination of qualitative loss factors for residential real estate and home equity consumer credits.

The results of these analyses and other credit review procedures, including selected targeted internal

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, 2025:

reviews, are taken into account in the determination of qualitative loss factors for residential real estate and home equity consumer credits.

Washington Trust may renew commercial loans at or immediately prior to their maturity.

In the tables below, renewals subject to full credit evaluation before being granted are reported as originations in the period renewed.

Loans with extensions of maturity dates of more than three months, including TLMs, are reported as originations in the period extended.

Gross charge-offs are reported in the loan’s initial origination year.

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, 2026:

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

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Residential Real Estate:

Residential real estate:

30,985 161,148 46,821 317,827 676,119 790,488 — — 2,023,388

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Gross charge-offs 66 — — 1 — — — — 67

Total loans, amortized cost $ 436,647 $ 247,123 $ 843,545 $ 1,408,031 $ 699,148 $ 1,164,642 $ 306,476 $ 17,225 $ 5,122,837

Total gross charge-offs $ 288 $ — $ 8,346 $ — $ — $ 6,014 $ — $ — $ 14,648

Loans, amortized cost $ 102,711 $ 676,951 $ 197,114 $ 682,863 $ 1,323,023 $ 1,698,445 $ 318,060 $ 16,641 $ 5,015,808

Gross charge-offs $ 83 $ — $ — $ 1 $ — $ — $ — $ — $ 84

(1) Excludes a $ 923 thousand negative basis adjustment associated with fair value hedges.

15 unchanged sentences

Residential Real Estate:

Residential real estate:

161,291 50,709 332,253 690,150 345,038 462,198 — — 2,041,639

12 unchanged sentences

Gross charge-offs 323 — 1 — — 3 — — 327

Total loans, amortized cost $ 334,388 $ 897,170 $ 1,502,297 $ 771,287 $ 342,333 $ 958,894 $ 318,761 $ 14,189 $ 5,139,319

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.

Loans, amortized cost $ 739,363 $ 206,495 $ 743,308 $ 1,348,951 $ 676,185 $ 1,090,180 $ 313,376 $ 16,865 $ 5,134,723

Gross charge-offs $ 372 $ — $ 8,346 $ — $ — $ 6,017 $ — $ — $ 14,735

(1) Excludes a $ 335 thousand negative basis adjustment associated with fair value hedges.

See Note 6 for additional disclosure.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Washington Trust may renew commercial loans at or immediately prior to their maturity.

In the tables above, renewals subject to full credit evaluation before being granted are reported as originations in the period renewed.

Loans with extensions of maturity dates of more than three months, including TLMs, are reported as originations in the period extended.

Gross charge-offs are reported in the loan’s initial origination year.

Note 5 - Allowance for Credit Losses on Loans

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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, 2025:

The following table presents the activity in the ACL on loans for the three months ended March 31, 2026:

(Dollars in thousands) Commercial Consumer

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Ending Balance $ 24,031 $ 9,647 $ 33,678 $ 6,003 $ 1,194 $ 251 $ 1,445 $ 41,126

The following table presents the activity in the ACL on loans for the nine months ended September 30, 2025:

(Dollars in thousands) Commercial Consumer

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

Beginning Balance $ 26,485 $ 7,277 $ 33,762 $ 6,832 $ 1,031 $ 335 $ 1,366 $ 41,960

Charge-offs ( 5,715 ) ( 8,681 ) ( 14,396 ) — — ( 252 ) ( 252 ) ( 14,648 )

Recoveries 200 16 216 — 17 31 48 264

Provision ( 2,127 ) 11,102 8,975 ( 209 ) 88 146 234 9,000

Ending Balance $ 18,843 $ 9,714 $ 28,557 $ 6,623 $ 1,136 $ 260 $ 1,396 $ 36,576

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

The elevated provision for credit losses in 2026 largely reflected specific reserve allocations on two individually analyzed nonaccrual CRE office segment loans.

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

(Dollars in thousands) Commercial Consumer

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

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, 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

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.

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.

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

As of both September 30, 2025 and December 31, 2024, there were no operating leases that had not yet commenced.

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

Sep 30, 2025 Dec 31, 2024

Operating lease ROU assets

$ 35,968 $ 26,943

Operating lease liabilities $ 38,741 $ 29,578

Weighted average discount rate 5.37 % 3.80 %

Range of lease expiration dates 1 month - 22 years

4 months - 23 years

Range of lease renewal options

3 years - 15 years

1 year - 5 years

Weighted average remaining lease term

13.1 years 12.6 years

The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at September 30, 2025, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets:

(Dollars in thousands)

October 1, 2025 to December 31, 2025 $ 1,272

2030 and thereafter 36,302

Total operating lease payments 54,582

interest 15,841

Present value of operating lease liabilities (1)

(1) Includes short-term operating lease liabilities of $ 3.1 million.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

(Dollars in thousands) Three Months Nine Months

Periods ended September 30, 2025 2024 2025 2024

Lease Expense:

Operating lease expense $ 1,333 $ 1,115 $ 3,960 $ 3,362

Variable lease expense 54 44 150 125

Total lease expense (1)

$ 1,387 $ 1,159 $ 4,110 $ 3,487

Cash paid reducing operating lease liabilities $ 1,282 $ 1,116 $ 3,823 $ 3,401

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

Note 7 - Intangible Assets

On July 31, 2025, the Bank's registered investment adviser subsidiary completed the purchase of wealth management client advisory contracts from Lighthouse in an asset acquisition.

Asset acquisitions of a single identifiable intangible asset are accounted for under a cost accumulation model.

An intangible asset totaling $ 2.2 million was recognized on the acquisition date based on the value of cash consideration paid to acquire the asset, as well as the direct costs that were associated with the asset acquisition, such as those paid to third party legal counsel, brokers and consultants.

The intangible asset is amortized over its estimated life using a method that approximates the amount of economic benefit that will be realized by the Corporation.

The Corporation did not recognize a liability for the contingent consideration payments as the amounts to be paid are uncertain until a future measurement date.

The contingent consideration payments will be capitalized as part of the intangible asset acquired when the payments are probable and reasonably estimable (i.e.

when they are paid).

Once capitalized, the contingent consideration will be amortized over the remaining life of the intangible asset.

The following table presents information regarding the Corporation’s intangible assets:

(Dollars in thousands)

Sep 30, 2025 Dec 31, 2024

Gross carrying amount $ 22,983 $ 20,803

Accumulated amortization 18,525 17,918

Net amount $ 4,458 $ 2,885

Weighted average remaining life (in years) 9.7 5.2

The gross carrying amount of intangible assets includes wealth management client advisory contracts resulting from the 2005 acquisition of Weston and the 2015 acquisition of Halsey, which were accounted for as business combinations.

In addition, the balance at September 30, 2025 includes wealth management client advisory contracts resulting from the Lighthouse asset acquisition.

In the third quarter of 2025, the Weston wealth management client advisory contracts were fully amortized.

Both the Halsey and Lighthouse wealth management client advisory contracts are being amortized on a straight-line basis over a 15 -year life.

The following table presents a summary of intangible assets amortization expense:

(Dollars in thousands) Three Months Nine Months

Periods ended September 30, 2025 2024 2025 2024

Amortization expense $ 200 $ 206 $ 607 $ 622

For the purpose of estimating the ACL, management segregated the loan portfolio into the portfolio segments detailed in the above tables.

Each of these segments possesses unique risk characteristics that are considered when determining the appropriate level of ACL for each segment.

Some of the characteristics unique to each loan category include:

Commercial Loans

CRE loans consist of commercial mortgages secured by non-owner occupied real property where the primary source of repayment is derived from rental income associated with the property or the proceeds of the sale, refinancing or permanent financing of the property.

CRE loans also include construction loans made to businesses for land development or the on-site construction of industrial, commercial or residential buildings.

CRE loans frequently involve larger loan balances to single borrowers or groups of related borrowers.

Washington Trust’s commercial real estate loans are secured by a variety of property types, such as multi-family, retail, industrial and warehouse, hospitality, office, as well as other specific use properties.

Collateral values are determined based upon third-party appraisals.

Permissible loan to value ratios at origination are governed by the Corporation’s policy and regulatory guidelines.

C&I loans consist of revolving, non-revolving and term loans extended to commercial borrowers for the purpose of providing working capital, equipment financing and financing for other business-related purposes.

C&I loans are frequently collateralized by equipment, inventory, accounts receivable and/or general business assets.

A portion of Washington Trust’s C&I loan portfolio is also collateralized by owner occupied real estate.

C&I loans also include tax-exempt loans made to states and political subdivisions, as well as industrial development or revenue bonds issued through quasi-public corporations for the benefit of a private or non-profit entity where that entity rather than the governmental entity is obligated to pay the debt service.

Washington Trust’s C&I loan portfolio includes loans to business sectors such as health care and social assistance, retail trade, transportation and warehousing, educational services, as well as other business sectors.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents estimated remaining amortization expense for intangible assets at September 30, 2025:

(Dollars in thousands)

October 1, 2025 to December 31, 2025 $ 155

2031 and thereafter 1,392

For the commercial portfolio, the Corporation typically obtains personal guarantees for payment from individuals holding material ownership interests in the borrowing entities.

Residential Real Estate Loans

Residential real estate loans held in the Corporation’s portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral.

Collateral consists of mortgage liens on one-to-four family residential properties, including condominiums.

Residential real estate loans also include loans to construct owner-occupied one-to-four family residential properties.

Collateral values are determined based upon third-party appraisals.

In general, loans must meet the underwriting and purchase standards imposed by Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and other institutional investors as applicable.

Consumer Loans:

Home equity loans and credit lines are made to qualified individuals and are primarily secured by senior or junior mortgage liens on one-to-four family residential properties, including condominiums.

Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established guidelines, as set forth in the Corporation’s policy.

Other consumer loans consist of loans to individuals that are secured by general aviation aircraft and other installment loans made to qualified individuals for various purposes.

Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established guidelines, as set forth in the Corporation’s policy.

Note 6 - Derivative Financial Instruments

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Cash Flow Hedging Instruments

As of September 30, 2025 and December 31, 2024, the Corporation had interest rate swap contracts and interest rate collars that were designated as cash flow hedges.

These interest rate swaps and collars were executed to hedge the interest rate risk associated with short-term borrowings.

As of March 31, 2026 and December 31, 2025, the Corporation had interest rate swaps, interest rate collars, and interest rate floors that were designated as cash flow hedges.

The interest rate swaps and collars were executed to hedge the interest rate risk associated with short-term borrowings.

See Note 9 for additional disclosure on borrowings.

In addition, as of September 30, 2025, the Corporation had interest rate floor contracts that were also designated as cash flow hedges.

These interest rate floors were executed in the third quarter of 2025 to hedge the interest rate risk associated with a pool of variable rate commercial loans.

The interest rate floors were executed to hedge the interest rate risk associated with a pool of variable rate commercial loans.

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.)

1 unchanged sentence

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.

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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, 2025, the remaining unamortized balance of the loss included in the AOCL component of shareholders’ equity was $ 5.0 million, or $ 3.7 million after tax.

At March 31, 2026, the remaining unamortized balance of the loss included in the AOCL component of shareholders’ equity was $ 729 thousand, or $ 547 thousand after tax.

Fair Value Hedging Instruments

As of September 30, 2025 and December 31, 2024, the Corporation had interest rate swap contracts that were designated as

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

fair value hedges.

As of March 31, 2026 and December 31, 2025, 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”).

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

(Dollars in thousands) September 30, 2025 December 31, 2024

(Dollars in thousands) March 31, 2026 December 31, 2025

Fair Value Fair Value

28 unchanged sentences

Net amounts $ 30,550 $ 29,345 $ 28,770 $ 29,545

(1) The fair value of derivative assets includes accrued interest receivable of $ 78 thousand and $ 120 thousand, respectively, at September 30, 2025 and December 31, 2024.

There was no accrued interest payable included in the fair value of derivative liabilities at September 30, 2025 or at December 31, 2024.

(1) The fair value of derivative assets includes accrued interest receivable of $ 23 thousand and $ 35 thousand, respectively, at March 31, 2026 and December 31, 2025.

The fair value of derivative liabilities includes accrued interest payable of $ 49 thousand and $ 23 thousand, respectively, March 31, 2026 and December 31, 2025.

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

3 unchanged sentences

(Dollars in thousands)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Balance Sheet Location Carrying Value of Hedged Item (1)

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Residential real estate loans $ 99,077 ($ 923 ) $ 99,665 ($ 335 )

(1) R epresents 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 $ 621.2 million and $ 733.2 million, respectively, at September 30, 2025 and December 31, 2024.

(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 $ 600.0 million and $ 608.5 million, respectively, at March 31, 2026 and December 31, 2025.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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(Dollars in thousands) Amounts Recognized in

Other Comprehensive Income (Loss), Net of Tax

Three Months Nine Months

Periods ended September 30, 2025 2024 2025 2024

Other Comprehensive Income, Net of Tax

Three months ended March 31, 2026 2025

Derivatives Designated as Cash Flow Hedging Instruments:

4 unchanged sentences

Interest rate floors

( 81 ) — ( 81 ) —

Total $ 2,190 $ 593

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Recognized in the Unaudited Consolidated Statements of Income

Three Months Nine Months

Periods ended September 30, Statement of Income Location 2025 2024 2025 2024

Three months ended March 31, Statement of Income Location 2026 2025

Derivatives Designated as Cash Flow Hedging Instruments:

4 unchanged sentences

FHLB advances

195 487 581 1,475

Interest rate floors Interest income:

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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,

2026 December 31,

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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 a decrease in mortgage banking revenues of $ 175 thousand and an increase of $ 342 thousand, respectively, for the three and nine months ended September 30, 2025.

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

There were no mortgage loans held for sale 90 days or more past due as of September 30, 2025 and December 31, 2024.

Changes in fair value amounted to a decrease in mortgage banking revenues of $ 534 thousand for the three months ended March 31, 2026, compared to an increase in mortgage banking revenues of $ 225 thousand for the three months ended March 31, 2025.

There were no mortgage loans held for sale 90 days or more past due as of March 31, 2026 and December 31, 2025.

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

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such items are classified as Level 1.

There were no Level 1 debt securities held at September 30, 2025 and December 31, 2024.

There were no Level 1 debt securities held at March 31, 2026 and December 31, 2025.

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

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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, 2025 and December 31, 2024.

There were no Level 3 debt securities held at March 31, 2026 and December 31, 2025.

Mortgage Loans Held for Sale, at Fair Value

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However, the credit valuation adjustments utilize Level 3 inputs.

As of September 30, 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 of March 31, 2026 and December 31, 2025, 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.

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(Level 2) Significant Unobservable Inputs

September 30, 2025

March 31, 2026

Available for sale debt securities:

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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, 2025, which were written down to fair value during the nine months ended September 30, 2025:

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

(Level 1) Significant Other Observable Inputs

(Level 2) Significant Unobservable Inputs

Collateral dependent individually analyzed loans $ 1,010 $ — $ — $ 1,010

Total assets at fair value on a nonrecurring basis $ 1,010 $ — $ — $ 1,010

The above table includes the carrying value of a collateral dependent C&I relationship that was written down to fair value.

In the second quarter of 2025, the borrower declared bankruptcy due to cash flow problems.

As of June 30, 2025, this C&I relationship had a carrying value of $ 9.3 million and a specific reserve of $ 2.3 million.

Based on ensuing developments in the bankruptcy proceedings during the third quarter of 2025, which resulted in updated recovery estimates, the Corporation revised its estimate of expected credit losses on this relationship and recognized a charge-off of $ 8.3 million in the third quarter of 2025.

The remaining carrying value of $ 1.0 million was collected in October 2025.

In addition, see Note 4 for disclosure regarding a CRE loan with a carrying value of $ 4.3 million at June 30, 2025 that was written down to fair value in the third quarter of 2025 because the Corporation changed its exit strategy and decided to sell this loan.

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.

The following table presents the carrying value of assets held at March 31, 2026, which were written down to fair value during the three months ended March 31, 2026:

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

2 unchanged sentences

Collateral dependent individually analyzed loans $ 5,074 $ — $ — $ 5,074

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

Total assets at fair value on a nonrecurring basis $ 5,074 $ — $ — $ 5,074

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

Assets written down to fair value for the year ended December 31, 2025 consisted of two collateral dependent individually analyzed loan relationships, which had no carrying value at December 31, 2025.

See additional disclosure on these two relationships in Note 10 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025

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

basis for which the Corporation has utilized Level 3 inputs to determine fair value:

1 unchanged sentence

(Weighted Average)

September 30, 2025

Collateral dependent individually analyzed loans $ 1,010 Appraisals of collateral Discount for costs to sell 0 %

Appraisal adjustments 0 %

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

(Weighted Average)

December 31, 2024

March 31, 2026

Collateral dependent individually analyzed loans $ 5,074 Appraisals of collateral Discount for costs to sell 10 %

3 unchanged sentences

(Dollars in thousands)

September 30, 2025 Carrying Amount Total

March 31, 2026 Carrying Amount Total

Fair Value Quoted Prices in Active Markets for Identical Assets

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Junior subordinated debentures 22,681 19,953 — 19,953 —

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

(1) The estimated fair value excludes a $ 335 thousand negative basis adjustment associated with fair value hedges.

See Note 6 for additional disclosure.

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The following table presents a summary of deposits:

(Dollars in thousands) September 30,

(Dollars in thousands) March 31,

2026 December 31,

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Total deposits $ 5,164,633 $ 5,269,990

(1) Includes wholesale brokered time deposit balances of $ 0 and $ 297.5 million, respectively, as of September 30, 2025 and December 31, 2024.

(1) There were no wholesale brokered time deposits at March 31, 2026 or December 31, 2025.

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

(Dollars in thousands) Scheduled Maturity Weighted Average Rate

October 1, 2025 to December 31, 2025 $ 437,609 3.73 %

April 1, 2026 to December 31, 2026 $ 972,539 3.48 %

2027 127,776 2.98

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2031 and thereafter 1,879 1.92

Balance at September 30, 2025 $ 1,233,998 3.66 %

Balance at March 31, 2026 $ 1,166,431 3.40 %

Time certificates of deposit in denominations of $250 thousand or more totaled $ 356.2 million and $ 355.9 million,

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

respectively, at September 30, 2025 and December 31, 2024.

respectively, at March 31, 2026 and December 31, 2025.

Note 9 - Borrowings

Advances payable to the FHLB amounted to $ 791.0 million and $ 1.1 billion, respectively, at September 30, 2025 and December 31, 2024.

Advances payable to the FHLB amounted to $ 576.0 million and $ 626.0 million, respectively, at March 31, 2026 and December 31, 2025.

See Note 6 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.

As of September 30, 2025 and December 31, 2024, the Bank had available borrowing capacity of $ 1.1 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 September 30, 2025 and December 31, 2024.

Furthermore, the Bank had standby letters of credit with the FHLB of $ 66.0 million at both September 30, 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 September 30, 2025:

The Bank had available borrowing capacity of $ 1.4 billion with the FHLB as of both March 31, 2026 and December 31, 2025.

In addition, the Bank had access to a $ 40.0 million unused line of credit with the FHLB at both March 31, 2026 and December 31, 2025.

The Bank had standby letters of credit with the FHLB of $ 65.1 million and $ 66.0 million at March 31, 2026 and December 31, 2025 to collateralize institutional deposits.

The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of March 31, 2026:

(Dollars in thousands) Scheduled

Maturity Weighted

October 1, 2025 to December 31, 2025 $ 385,000 4.52 %

April 1, 2026 to December 31, 2026 $ 340,000 4.07 %

2027 60,000 4.12

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2031 and thereafter — —

Balance at September 30, 2025 $ 791,000 4.40 %

Balance at March 31, 2026 $ 576,000 4.07 %

Note 10 - Shareholders' Equity

Stock Repurchase Program

During the second quarter of 2025, the Board of Directors of the Corporation adopted the 2025 Repurchase Program, which authorizes the repurchase of up to 850,000 shares, or approximately 4 %, of the Corporation’s outstanding common stock.

The 2025 Repurchase Program adopted by the Board of Directors authorizes the repurchase of up to 850,000 shares, or approximately 4 %, 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 number 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.

Repurchases under the 2025 Repurchase Program are conducted pursuant to a trading plan adopted by the Corporation that is designed to qualify under Rule 10b5-1 under the Exchange Act.

Repurchases under the 2025 Repurchase Program are conducted pursuant to a trading plan adopted by the Bancorp that is designed to qualify under Rule 10b5-1 under the Exchange Act.

The 2025 Repurchase Program commenced on May 15, 2025 and expires on May 15, 2026 and may be modified, suspended, or discontinued at any time.

Through September 30, 2025, the Corporation has repurchased a total of 246,803 shares, at an average price of $ 27.28 and a total cost of $ 6.7 million, under its 2025 Repurchase Program.

Through March 31, 2026, the Bancorp has repurchased a total of 267,658 shares, at an average price of $ 27.26 and a total cost of $ 7.4 million, under its 2025 Repurchase Program.

The total cost included $ 65 thousand of excise tax attributable to shares that were repurchased.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Regulatory Capital Requirements

Capital levels at September 30, 2025 exceeded the regulatory minimum levels to be considered “well capitalized.”

Capital levels at March 31, 2026 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:

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Amount Ratio Amount Ratio Amount Ratio

September 30, 2025

March 31, 2026

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, 2025 and December 31, 2024.

The Corporation’s and the Bank’s capital levels exceeded the minimum regulatory capital requirements plus the capital conservation buffer at March 31, 2026 and December 31, 2025.

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, 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.

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, 2026 and December 31, 2025, $ 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, 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 11 - Revenue from Contracts with Customers

The following tables summarize total revenues as presented in the Unaudited Consolidated Statements of Income and the related amounts that are from contracts with customers within the scope of ASC 606.

The following table summarizes total revenues as presented in the Unaudited Consolidated Statements of Income and the related amounts that are from contracts with customers within the scope of ASC 606.

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, 2025 2024

For the three months ended March 31, 2026 2025

(Dollars in thousands) Revenue (1)

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Income from bank-owned life insurance

619 308 416 313

Total noninterest income 17,636 12,685 16,272 12,407

Total revenues $ 56,469 $ 12,685 $ 48,534 $ 12,407

(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, 2025 2024

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

Revenue (1) ASC 606 Revenue (2)

Net interest income $ 112,440 $ — $ 95,512 $ —

Noninterest income:

Wealth management revenues 30,384 30,384 29,005 29,005

Mortgage banking revenues 8,839 — 8,133 —

Card interchange fees 3,919 3,919 3,741 3,741

Service charges on deposit accounts 2,393 2,393 2,238 2,238

Loan related derivative income 1,048 — 459 —

Income from bank-owned life insurance 2,463 — 2,262 —

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

— — 6,994 6,994

Other income 1,317 859 3,269 869

329 262 331 264

Total noninterest income 17,303 13,079 22,643 19,402

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

(3) For the nine months ended September 30, 2025, included herein in accordance with sales-leaseback transaction provisions of ASC 842 and ASC 606.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(3) For the three months ended March 31, 2025, included herein in accordance with sale-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, 2025 2024 2025 2024

(Dollars in thousands)

Three months ended March 31, 2026 2025

Revenue recognized at a point in time:

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Wealth management revenues

10,373 9,989 30,384 29,005

Service charges on deposit accounts

282 282 831 821

50 60 172 178

Total revenues from contracts with customers in scope of ASC 606

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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 $ 6.3 million and $ 6.0 million, respectively, at September 30, 2025 and December 31, 2024 and were included in other assets in the Unaudited Consolidated Balance Sheets.

Receivables amounted to $ 6.0 million and $ 7.0 million, respectively, at March 31, 2026 and December 31, 2025 and were included in other assets in the Unaudited Consolidated Balance Sheets.

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, 2025 and December 31, 2024 and were included in other liabilities in the Unaudited Consolidated Balance Sheets.

The balances of contract liabilities were insignificant at both March 31, 2026 and December 31, 2025 and were included in other liabilities in the Unaudited Consolidated Balance Sheets.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

For commissions and incentives that are in scope of ASC 606, such as those paid to employees in our wealth management services and 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 $ 2.3 million and $ 2.1 million, respectively at September 30, 2025 and December 31, 2024 and were included in other assets in the Unaudited Consolidated Balance Sheets.

The carrying value of contract cost assets amounted to $ 2.1 million and $ 2.3 million, respectively at March 31, 2026 and December 31, 2025 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 14 - Defined Benefit Pension Plans

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.

These defined benefit pension plans were previously amended to freeze benefit accruals after a 10-year transition period, which ended in December 2023.

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.

In the first quarter of 2025, the qualified pension plan liability was settled 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.

In the third quarter of 2025 and as a result of the plan’s over-funded status, remaining surplus plan assets of $ 10.5 million were transferred directly to the Corporation’s 401(k) Plan (a qualified replacement plan) to fund future non-elective employer contributions.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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, 2025 2024 2025 2024 2025 2024 2025 2024

Net Periodic Benefit Cost:

Service cost (1)

$ — $ 125 $ — $ 375 $ — $ — $ — $ —

Interest cost (2)

— 833 15 2,499 163 162 489 487

Expected return on plan assets (2)

— ( 1,028 ) ( 34 ) ( 3,084 ) — — — —

Recognized net actuarial loss (2)

— — — — 29 31 87 92

Net periodic benefit cost before settlement — ( 70 ) ( 19 ) ( 210 ) 192 193 576 579

Pension plan settlement charge — — 6,436 — — — — —

Net periodic benefit cost $ — ($ 70 ) $ 6,417 ($ 210 ) $ 192 $ 193 $ 576 $ 579

(1) Included in salaries and employee benefits expense in the Unaudited Consolidated Statements of Income.

Service cost for 2024 represents administrative expenses related to the termination of the qualified pension plan.

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

Note 12 - Business Segments

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

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

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

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

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deposit generation;

cash management services;

treasury management services;

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

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and institutional trust services, including custody and fiduciary services.

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.

The CODMs evaluate 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 CODMs include net interest income, provision for credit losses, noninterest income, noninterest expense, and income tax expense.

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

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

(Dollars in thousands) Banking Wealth Management Services Consolidated Total

Three months ended September 30, 2025 2024 2025 2024 2025 2024

Three months ended March 31, 2026 2025 2026 2025 2026 2025

Total interest income and dividend income $ 74,982 $ 79,463 $ — $ — $ 74,982 $ 79,463

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(Dollars in thousands) Banking Wealth Management Services Consolidated Total

Nine months ended September 30, 2025 2024 2025 2024 2025 2024

Total interest income and dividend income $ 239,254 $ 258,839 $ — $ — $ 239,254 $ 258,839

Total interest expense 126,814 163,327 — — 126,814 163,327

Net interest income 112,440 95,512 — — 112,440 95,512

Provision for credit losses 8,600 1,400 — — 8,600 1,400

Net interest income after provision for credit losses 103,840 94,112 — — 103,840 94,112

Noninterest income 26,470 18,400 30,887 31,695 57,357 50,095

Noninterest expenses:

Salaries and employee benefits 51,659 49,479 16,462 14,906 68,121 64,385

Outsourced services 10,179 9,230 2,691 2,831 12,870 12,061

Net occupancy 7,376 6,573 718 784 8,094 7,357

Equipment 2,524 2,632 214 270 2,738 2,902

Legal, audit and professional fees 1,655 1,855 540 428 2,195 2,283

FDIC deposit insurance costs

3,552 4,247 — — 3,552 4,247

Advertising and promotion 1,586 1,773 304 293 1,890 2,066

Amortization of intangibles — — 607 622 607 622

Other expenses 11,211 5,564 3,174 1,290 14,385 6,854

Total noninterest expenses 89,742 81,353 24,710 21,424 114,452 102,777

Income before income taxes 40,568 31,159 6,177 10,271 46,745 41,430

Income tax expense 8,884 6,441 1,591 2,257 10,475 8,698

Net income $ 31,684 $ 24,718 $ 4,586 $ 8,014 $ 36,270 $ 32,732

Total assets at period end $ 6,655,634 $ 7,082,826 $ 62,287 $ 58,745 $ 6,717,921 $ 7,141,571

Expenditures for long-lived assets 811 3,427 22 92 833 3,519

Depreciation expense (1)

2,370 2,663 253 312 2,623 2,975

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

For the nine months ended September 30, 2025, noninterest income for the Banking segment included a $ 7.0 million net gain recognized in the first quarter 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 nine months ended September 30, 2025, total other expenses included a $ 6.4 million pension plan settlement charge recognized in the first quarter, of which $ 4.9 million was included in the 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 14.

For the nine months ended September 30, 2024, noninterest income for the Wealth Management Services segment included income of $ 2.1 million recognized in the first quarter associated with a litigation settlement.

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

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 16 - Other Comprehensive Income (Loss)

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

Three months ended September 30, 2025 2024

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

Note 13 - Other Comprehensive Income

The following table presents the activity in other comprehensive income:

Three months ended March 31, 2026 2025

(Dollars in thousands) Pre-tax Amounts Income Tax

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

(Expense) Benefit Net of Tax

Available for Sale Debt Securities:

3 unchanged sentences

Net cash flow hedge losses reclassified into earnings (1)

Net change in fair value of cash flow hedges 2,035 ( 513 ) 1,522 ( 1,487 ) 379 ( 1,108 )

Defined Benefit Plan Obligations:

Amortization of net actuarial losses into earnings 29 ( 7 ) 22 31 ( 9 ) 22

Total other comprehensive income $ 14,877 ($ 3,756 ) $ 11,121 $ 39,152 ($ 9,984 ) $ 29,168

Nine months ended September 30, 2025 2024

(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 $ 32,561 ($ 8,222 ) $ 24,339 $ 26,866 ($ 6,851 ) $ 20,015

Cash flow hedges:

Change in fair value of cash flow hedges ( 1,579 ) 399 ( 1,180 ) 283 ( 73 ) 210

Net cash flow hedge losses reclassified into earnings 5,848 ( 1,477 ) 4,371 4,966 ( 1,264 ) 3,702

2,161 ( 539 ) 1,622 1,923 ( 486 ) 1,437

Net change in fair value of cash flow hedges 2,919 ( 729 ) 2,190 793 ( 200 ) 593

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Total other comprehensive income $ 1,164 ($ 290 ) $ 874 $ 26,819 ($ 6,827 ) $ 19,992

(1) See Note 6 for additional information on pre-tax amounts related to cash flow hedges that were reclassified into earnings.

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, 2025

Balance at June 30, 2025 ($ 87,677 ) ($ 6,269 ) ($ 2,003 ) ($ 95,949 )

Other comprehensive income before reclassifications 9,577 42 — 9,619

Amounts reclassified from AOCL

— 1,480 22 1,502

Net other comprehensive income 9,577 1,522 22 11,121

Balance at September 30, 2025 ($ 78,100 ) ($ 4,747 ) ($ 1,981 ) ($ 84,828 )

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(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, 2025

For the three months ended March 31, 2026

Balance at December 31, 2025 ($ 73,743 ) ($ 3,142 ) ($ 2,424 ) ($ 79,309 )

Other comprehensive income (loss) before reclassifications 24,339 ( 1,180 ) 1,937 25,096

Amounts reclassified from AOCL

— 4,371 4,876 9,247

Net other comprehensive income 24,339 3,191 6,813 34,343

Balance at September 30, 2025 ($ 78,100 ) ($ 4,747 ) ($ 1,981 ) ($ 84,828 )

(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

Other comprehensive (loss) income before reclassifications ( 1,334 ) 568 — ( 766 )

Amounts reclassified from AOCL

— 1,622 18 1,640

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 )

Net other comprehensive (loss) income ( 1,334 ) 2,190 18 874

Balance at March 31, 2026 ($ 75,077 ) ($ 952 ) ($ 2,406 ) ($ 78,435 )

(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 )

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

Three Months Nine Months

Periods ended September 30, 2025 2024 2025 2024

Three months ended March 31, 2026 2025

Earnings for basic and diluted EPS calculations:

Net income $ 12,600 $ 12,179

dividends and undistributed earnings allocated to participating securities — ( 8 ) — —

Net income available to common shareholders $ 10,846 $ 10,973 $ 36,270 $ 32,732

Shares for basic and diluted EPS calculations:

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Weighted average anti-dilutive common stock equivalents (1)

429 404 430 451

(1) For the three and nine months ended September 30, 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 the Bancorp’s common stock, and therefore were anti-dilutive.

(1) 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 the Bancorp’s common stock, and therefore were anti-dilutive.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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Most standby letters of credit extend for one year.

At September 30, 2025 and December 31, 2024, there were no liabilities to beneficiaries resulting from standby letters of credit.

At March 31, 2026 and December 31, 2025, 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.

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,

2026 December 31,

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Standby letters of credit 7,317 7,774

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

ACL on Unfunded Commitments

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, 2025 is presented below:

The activity in the ACL on unfunded commitments for the three months ended March 31, 2026 is presented below:

(Dollars in thousands) Commercial Consumer

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Ending Balance $ 579 $ 630 $ 1,209 $ 23 $ — $ 8 $ 8 $ 1,240

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The activity in the ACL on unfunded commitments for the nine months ended September 30, 2025 is presented below:

(Dollars in thousands) Commercial Consumer

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

Beginning Balance $ 822 $ 589 $ 1,411 $ 18 $ — $ 11 $ 11 $ 1,440

Provision ( 396 ) ( 6 ) ( 402 ) 4 — ( 2 ) ( 2 ) ( 400 )

Ending Balance $ 426 $ 583 $ 1,009 $ 22 $ — $ 9 $ 9 $ 1,040

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

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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

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