What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 334 added, 149 removed, 1194 unchanged (29% of the section changed)

9 unchanged sentences

Mortgage loans held for sale, at fair value 33,608 35,833

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;

Available for sale debt securities, at fair value (amortized cost of $ 981,994 , net of allowance for credit losses on securities of $ 0 at June 30, 2026;

and amortized cost of $ 1,035,205 ;

24 unchanged sentences

authorized 60,000,000 shares;

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

19,561,985 shares issued and 19,070,704 shares outstanding at June 30, 2026 and 19,561,985 shares issued and 19,034,935 shares outstanding at December 31, 2025

Paid-in capital 198,088 198,323

2 unchanged sentences

Treasury stock, at cost;

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

491,281 shares at June 30, 2026 and 527,050 shares at December 31, 2025

( 18,078 ) ( 19,394 )

6 unchanged sentences

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

Three months ended March 31, 2026 2025

Three Months Six Months

Periods ended June 30, 2026 2025 2026 2025

Interest income:

31 unchanged sentences

FDIC deposit insurance costs

952 1,235 1,887 2,497

Advertising and promotion 771 717 1,318 1,127

16 unchanged sentences

(Dollars in thousands)

Three months ended March 31, 2026 2025

Three Months Six Months

Periods ended June 30, 2026 2025 2026 2025

Net income $ 15,981 $ 13,245 $ 28,581 $ 25,424

10 unchanged sentences

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

For the three months ended March 31, 2026 Common

For the three months ended June 30, 2026 Common

Shares Outstanding Common

4 unchanged sentences

Loss Treasury Stock Total

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

— — — 15,981 — — 15,981

Total other comprehensive income, net of tax — — — — 1,075 — 1,075

Cash dividends declared ($ 0.56 per share)

— — — ( 10,839 ) — — ( 10,839 )

Share-based compensation — — 847 — — — 847

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

30 — ( 1,413 ) — — 1,099 ( 314 )

Balance at June 30, 2026 19,071 $ 1,223 $ 198,088 $ 449,650 ($ 77,360 ) ($ 18,078 ) $ 553,523

For the six months ended June 30, 2026 Common

Shares Outstanding Common

Stock Paid-in

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury Stock Total

Balance at December 31, 2025 19,035 $ 1,223 $ 198,323 $ 442,741 ($ 79,309 ) ($ 19,394 ) $ 543,584

6 unchanged sentences

36 — ( 1,733 ) — — 1,316 ( 417 )

Balance at June 30, 2026 19,071 $ 1,223 $ 198,088 $ 449,650 ($ 77,360 ) ($ 18,078 ) $ 553,523

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 June 30, 2025 Common

Shares Outstanding Common

Stock Paid-in

Capital Retained

Earnings Accumulated

Comprehensive

Loss Treasury Stock Total

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

For the three months ended March 31, 2025 Common

— — — 13,245 — — 13,245

Total other comprehensive income, net of tax — — — — 3,230 — 3,230

Cash dividends declared ($ 0.56 per share)

— — — ( 10,958 ) — — ( 10,958 )

Share-based compensation — — 873 — — — 873

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

17 — ( 1,051 ) — — 796 ( 255 )

Treasury stock purchased under 2025 Repurchase Program

( 10 ) — — — — ( 296 ) ( 296 )

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

For the six months ended June 30, 2025 Common

Shares Outstanding Common

12 unchanged sentences

19 — ( 1,208 ) — — 914 ( 294 )

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

Treasury stock purchased under 2025 Repurchase Program

( 10 ) — — — — ( 296 ) ( 296 )

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

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

3 unchanged sentences

(Dollars in thousands)

Three months ended March 31, 2026 2025

Six months ended June 30, 2026 2025

Cash flows from operating activities:

20 unchanged sentences

Cash flows from investing activities:

Purchases of:

Available for sale debt securities:

Mortgage-backed — ( 73,303 )

Maturities, calls, and principal payments of:

4 unchanged sentences

Net redemptions of Federal Home Loan Bank stock 5,664 4,544

Net decrease in loans 120,889 38,469

Net decrease (increase) in loans 32,697 ( 6,367 )

Net proceeds from sale of portfolio loans — 283,182

2 unchanged sentences

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

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

Equity investments in real estate limited partnerships ( 494 ) ( 74 )

2 unchanged sentences

Cash flows from financing activities:

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

Net increase (decrease) in deposits 88,883 ( 70,552 )

Proceeds from Federal Home Loan Bank advances 1,015,000 1,022,000

Repayments of Federal Home Loan Bank advances ( 1,185,000 ) ( 1,146,000 )

Treasury stock purchased — ( 296 )

Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered ( 417 ) ( 294 )

Cash dividends paid ( 21,631 ) ( 21,781 )

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

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

Net cash used in financing activities ( 103,165 ) ( 216,923 )

Net increase in cash and cash equivalents 23,661 53,835

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

78 unchanged sentences

(Dollars in thousands)

March 31, 2026 Amortized Cost Unrealized Gains Unrealized Losses ACL

June 30, 2026 Amortized Cost Unrealized Gains Unrealized Losses ACL

Available for Sale Debt Securities:

30 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 $ 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.

Available for sale debt securities balances exclude accrued interest receivable of $ 2.2 million and $ 3.1 million, respectively, as of June 30, 2026 and December 31, 2025.

At June 30, 2026 and December 31, 2025, securities with a fair value of $ 384.3 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.

5 unchanged sentences

(Dollars in thousands)

March 31, 2026 Amortized Cost Fair Value

June 30, 2026 Amortized Cost Fair Value

Due in one year or less $ 111,726 $ 101,550

7 unchanged sentences

$ 981,994 $ 885,321

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.

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 June 30, 2026 that are callable at the discretion of the issuers.

Final maturities of the callable securities range from 10 months to 18 years, with call features ranging from 1 month to 7 years.

Assessment of Available for Sale Debt Securities for Impairment

4 unchanged sentences

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

March 31, 2026 # Fair

June 30, 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 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.

There were no debt securities on nonaccrual status at June 30, 2026 and 2025 and, therefore there was no accrued interest related to debt securities reversed against interest income for the three and six months ended June 30, 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.

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

Therefore, no ACL was recorded at both June 30, 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 March 31, 2026.

The issuers of these securities continue to make timely principal and interest payments, and none of these securities were past due at June 30, 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 March 31, 2026 included two trust preferred securities issued by two individual companies in the banking sector.

These securities in an unrealized loss position at June 30, 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 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.

As of June 30, 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 June 30, 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 March 31, 2026 included three corporate bond holdings issued by two individual companies in the financial services industry.

These securities in an unrealized loss position at June 30, 2026 included three corporate bond holdings issued by two individual companies in the financial services industry.

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.

As of June 30, 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 June 30, 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.

2 unchanged sentences

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

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

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 $ 923 thousand and $ 335 thousand, respectively, at March 31, 2026 and December 31, 2025.

Also, includes negative basis adjustments associated with fair value hedges of $ 1.5 million and $ 335 thousand, respectively, at June 30, 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 $ 11.3 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.

(5) Includes net unamortized loan origination costs of $ 11.3 million and $ 11.0 million, respectively, at June 30, 2026 and December 31, 2025 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $ 185 thousand and $ 198 thousand, respectively, at June 30, 2026 and December 31, 2025.

The carrying value of loans excludes accrued interest receivable of $ 19.4 million and $ 20.1 million, respectively, as of June 30, 2026 and December 31, 2025.

As of June 30, 2026 and December 31, 2025, loans amounting to $ 2.8 billion and $ 2.9 billion, respectively, 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

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

June 30, 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 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.

Included in past due loans as of June 30, 2026 and December 31, 2025, were nonaccrual loans of $ 36.2 million and $ 8.3 million, respectively.

In addition, all loans 90 days or more past due at June 30, 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) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

Nonaccrual Loans Nonaccrual Loans

12 unchanged sentences

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

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.

Nonaccrual loans of $ 3.7 million and $ 4.6 million, respectively, at June 30, 2026 and December 31, 2025 were current as to the payment of principal and interest.

As of June 30, 2026 and December 31, 2025, nonaccrual loans secured by one- to four-family residential properties amounting to $ 1.7 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 ended March 31, 2026 2025

(Dollars in thousands) Three Months Six Months

Periods ended June 30, 2026 2025 2026 2025

Commercial real estate

$ — $ — $ 588 $ —

Commercial & industrial

2 unchanged sentences

Residential real estate

93 124 240 268

Total consumer 29 48 42 83

12 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.

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:

As of June 30, 2026 and December 31, 2025, the carrying value of TLMs amounted to $ 7.9 million and $ 8.2 million, respectively.

There were no loans modified as a TLM during the three months or six months ended June 30, 2026.

The following tables present the carrying value at June 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 March 31, 2025 Other-than-Insignificant Payment Delay Total % of Loan Class (1)

Three months ended June 30, 2025 Combination (1)

Total % of Loan Class (2)

Commercial real estate $ 4,276 $ 4,276 — %

Total $ 4,276 $ 4,276 — %

(1) Combination includes an interest rate reduction, maturity extension and other-than-insignificant payment delay.

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

(Dollars in thousands)

Six months ended June 30, 2025

Other-than-Insignificant Payment Delay Combination (1)

Total % of Loan Class (2)

Commercial real estate $ — $ 4,276 $ 4,276 — %

Residential Real Estate:

1 unchanged sentence

Total $ 1,429 $ 4,276 $ 5,705 — %

(1) Combination includes an interest rate reduction, maturity extension and other-than-insignificant payment delay.

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

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

Three months ended March 31, 2025 Financial Effect

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

Three months ended June 30, 2025 Financial Effect

Combination - Interest Rate Reduction, Maturity Extension and Other-than-Insignificant Payment Delay:

Commercial real estate Provided a weighted average interest rate reduction of 1.7 %, maturity extension of 8 months, and payment delay of 8 months

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Six months ended June 30, 2025

Financial Effect

Combination - Interest Rate Reduction, Maturity Extension and Other-than-Insignificant Payment Delay:

Commercial real estate Provided a weighted average interest rate reduction of 1.7 %, maturity extension of 8 months, and payment delay of 8 months

Other-than-Insignificant Payment Delay:

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

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

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

1 unchanged sentence

(Dollars in thousands) Days Past Due

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

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

Commercial real estate

$ 5,593 $ — $ — $ — $ — $ 5,593

Commercial & industrial

Total commercial 5,605 — — — — 5,605

Residential Real Estate:

2 unchanged sentences

Total loans $ 6,222 $ — $ — $ — $ — $ 6,222

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(Dollars in thousands) Days Past Due

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

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

Commercial real estate

7 unchanged sentences

Total loans $ 10,705 $ — $ — $ — $ — $ 10,705

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.

At both June 30, 2026 and June 30, 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 June 30, 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 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.

As of June 30, 2026 and December 31, 2025, the carrying value of individually analyzed loans amounted to $ 37.7 million and $ 8.9 million, respectively.

The carrying value of collateral dependent individually analyzed loans was $ 13.1 million and $ 7.5 million, respectively, at June 30, 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) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

Carrying Value Related Allowance Carrying Value Related Allowance

12 unchanged sentences

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Credit Quality Indicators

20 unchanged sentences

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

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

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

“Loss” is not intended to imply that the loan has no recovery value, but rather, it is not practical or desirable to continue to carry the asset.

9 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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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 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.

2 unchanged sentences

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:

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 June 30, 2026:

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

26 unchanged sentences

Gross charge-offs $ 158 $ — $ — $ 1 $ — $ 2 $ 1 $ — $ 162

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

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

See Note 6 for additional disclosure.

36 unchanged sentences

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

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

The following table presents the activity in the ACL on loans for the three months ended June 30, 2026:

(Dollars in thousands) Commercial Consumer

5 unchanged sentences

Ending Balance $ 25,446 $ 9,557 $ 35,003 $ 6,150 $ 1,225 $ 193 $ 1,418 $ 42,571

The following table presents the activity in the ACL on loans for the six months ended June 30, 2026:

(Dollars in thousands) Commercial Consumer

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

Beginning Balance $ 19,766 $ 9,750 $ 29,516 $ 6,270 $ 1,186 $ 264 $ 1,450 $ 37,236

Charge-offs — ( 29 ) ( 29 ) — — ( 133 ) ( 133 ) ( 162 )

Recoveries — 71 71 1 1 24 25 97

Provision 5,680 ( 235 ) 5,445 ( 121 ) 38 38 76 5,400

Ending Balance $ 25,446 $ 9,557 $ 35,003 $ 6,150 $ 1,225 $ 193 $ 1,418 $ 42,571

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:

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

(Dollars in thousands) Commercial Consumer

5 unchanged sentences

Ending Balance $ 19,604 $ 13,158 $ 32,762 $ 6,919 $ 1,107 $ 271 $ 1,378 $ 41,059

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents the activity in the ACL on loans for the six months ended June 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 ( 2,724 ) ( 324 ) ( 3,048 ) — — ( 141 ) ( 141 ) ( 3,189 )

Recoveries 200 14 214 — 2 22 24 238

Provision ( 4,357 ) 6,191 1,834 87 74 55 129 2,050

Ending Balance $ 19,604 $ 13,158 $ 32,762 $ 6,919 $ 1,107 $ 271 $ 1,378 $ 41,059

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

13 unchanged sentences

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)

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

10 unchanged sentences

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 6 - Derivative Financial Instruments

13 unchanged sentences

Cash Flow Hedging Instruments

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.

As of June 30, 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.

1 unchanged sentence

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

During the quarter ended June 30, 2026, an interest rate collar with a notional amount of $ 50 million matured.

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

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

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

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

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 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.

On March 31, 2023, the Corporation terminated this interest rate swap contract.

On that date, the derivative liability was derecognized and the deferred loss that was 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 deferred loss was amortized into earnings as a reduction of interest income on a straight-line basis over the life of the original interest rate swap term.

The deferred loss was fully amortized as of May 1, 2026.

Fair Value Hedging Instruments

As of March 31, 2026 and December 31, 2025, the Corporation had interest rate swap contracts that were designated as fair value hedges.

As of June 30, 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”).

9 unchanged sentences

The Corporation retains the risk that is associated with the potential failure of counterparties and the risk inherent in originating loans.

The interest rate contracts with counterparties are generally subject to bilateral collateralization terms.

The interest rate

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

contracts with counterparties are generally subject to bilateral collateralization terms.

These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings.

12 unchanged sentences

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

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

(Dollars in thousands) June 30, 2026 December 31, 2025

Fair Value Fair Value

28 unchanged sentences

Net amounts $ 35,395 $ 33,122 $ 28,770 $ 29,545

(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.

(1) The fair value of derivative assets includes accrued interest receivable of $ 23 thousand and $ 35 thousand, respectively, at June 30, 2026 and December 31, 2025.

The fair value of derivative liabilities includes accrued interest payable of $ 53 thousand and $ 23 thousand, respectively, at June 30, 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)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Balance Sheet Location Carrying Value of Hedged Item (1)

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(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.

The amortized cost balance of the closed-pool of residential real estate loans used in the fair value hedges was $ 590.2 million and $ 608.5 million, respectively, at June 30, 2026 and December 31, 2025.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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Other Comprehensive Income, Net of Tax

Three months ended March 31, 2026 2025

Three Months Six Months

Periods ended June 30, 2026 2025 2026 2025

Derivatives Designated as Cash Flow Hedging Instruments:

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Interest rate floors

( 34 ) — ( 13 ) —

Total $ 1,079 $ 1,076 $ 3,269 $ 1,669

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Recognized in the Unaudited Consolidated Statements of Income

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

Three Months Six Months

Periods ended June 30, Statement of Income Location 2026 2025 2026 2025

Derivatives Designated as Cash Flow Hedging Instruments:

4 unchanged sentences

FHLB advances

34 192 26 386

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) March 31,

(Dollars in thousands) June 30,

2026 December 31,

4 unchanged sentences

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

Changes in fair value amounted to 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.

Changes in fair value amounted to an increase in mortgage banking revenues of $ 468 thousand and a decrease of $ 65 thousand, respectively, for the three and six months ended June 30, 2026, compared to an increase in mortgage banking revenues of $ 292 thousand and $ 517 thousand, respectively, for the three and six months ended June 30, 2025.

There were no mortgage loans held for sale 90 days or more past due as of June 30, 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 March 31, 2026 and December 31, 2025.

There were no Level 1 debt securities held at June 30, 2026 and December 31, 2025.

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

4 unchanged sentences

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

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

There were no Level 3 debt securities held at June 30, 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 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 of June 30, 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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As a result, the Corporation has classified its interest rate lock commitments as Level 2.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Items Recorded at Fair Value on a Recurring Basis

3 unchanged sentences

(Level 2) Significant Unobservable Inputs

March 31, 2026

June 30, 2026

Available for sale debt securities:

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Total liabilities at fair value on a recurring basis $ 33,122 $ — $ 33,122 $ —

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

25 unchanged sentences

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

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

the collateral.

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

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

1 unchanged sentence

Items Recorded at Fair Value on a Nonrecurring Basis

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:

The following table presents the carrying value of assets held at June 30, 2026, which were written down to fair value during the six months ended June 30, 2026:

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

5 unchanged sentences

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.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

2 unchanged sentences

(Weighted Average)

March 31, 2026

June 30, 2026

Collateral dependent individually analyzed loans $ 4,274 Appraisals of collateral Discount for costs to sell 10 %

3 unchanged sentences

(Dollars in thousands)

March 31, 2026 Carrying Amount Total

June 30, 2026 Carrying Amount Total

Fair Value Quoted Prices in Active Markets for Identical Assets

14 unchanged sentences

Junior subordinated debentures 22,681 19,876 — 19,876 —

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

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

See Note 6 for additional disclosure.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

(Dollars in thousands)

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See Note 6 for additional disclosure.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 8 - Deposits

The following table presents a summary of deposits:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 December 31,

10 unchanged sentences

Total deposits $ 5,358,873 $ 5,269,990

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

(1) There were no wholesale brokered time deposits at June 30, 2026 or December 31, 2025.

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

(Dollars in thousands) Scheduled Maturity Weighted Average Rate

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

July 1, 2026 to December 31, 2026 $ 745,069 3.38 %

2027 294,503 3.23

3 unchanged sentences

2031 and thereafter 2,363 2.00

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 March 31, 2026 and December 31, 2025.

Balance at June 30, 2026 $ 1,133,502 3.31 %

Time certificates of deposit in denominations of $250 thousand or more totaled $ 344.0 million and $ 355.9 million, respectively, at June 30, 2026 and December 31, 2025.

Note 9 - Borrowings

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

Advances payable to the FHLB amounted to $ 456.0 million and $ 626.0 million, respectively, at June 30, 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.

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:

The Bank had available borrowing capacity of $ 1.4 billion with the FHLB as of both June 30, 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 June 30, 2026 and December 31, 2025.

The Bank had standby letters of credit with the FHLB of $ 65.1 million and $ 66.0 million at June 30, 2026 and December 31, 2025 to collateralize institutional deposits.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of June 30, 2026:

(Dollars in thousands) Scheduled

Maturity Weighted

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

July 1, 2026 to December 31, 2026 $ 220,000 3.98 %

2027 60,000 4.12

3 unchanged sentences

2031 and thereafter — —

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

Balance at June 30, 2026 $ 456,000 4.03 %

Note 10 - Shareholders' Equity

Stock Repurchase Program

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.

The Board of Directors adopted the 2026 Repurchase Program, which authorizes the repurchase of up to 850,000 shares, or approximately 4.5 %, of the Bancorp’s outstanding common stock.

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

The timing and actual 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 Bancorp that is designed to qualify under Rule 10b5-1 under the Exchange Act.

Repurchases under the 2026 Repurchase Program will be conducted pursuant to a trading plan adopted by the Bancorp that is designed to qualify under Rule 10b5-1 under the Exchange Act.

The 2026 Repurchase Program commenced on May 16, 2026 and expires on May 16, 2027 and may be modified, suspended, or discontinued at any time.

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.

There have been no shares repurchased under the 2026 Repurchase Program.

The 2025 Repurchase Program expired on May 15, 2026.

The Bancorp had repurchased a total of 267,658 shares, at an average price of $ 27.26 and a total cost of $ 7.4 million, under the 2025 Repurchase Program.

No shares were repurchased in the three and six months ended June 30, 2026.

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

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Regulatory Capital Requirements

Capital levels at March 31, 2026 exceeded the regulatory minimum levels to be considered “well capitalized.”

Capital levels at June 30, 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:

1 unchanged sentence

Amount Ratio Amount Ratio Amount Ratio

March 31, 2026

June 30, 2026

Total Capital (to Risk-Weighted Assets):

26 unchanged sentences

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 March 31, 2026 and December 31, 2025.

The Corporation’s and the Bank’s capital levels exceeded the minimum regulatory capital requirements plus the capital conservation buffer at June 30, 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 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.

At both June 30, 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)

Note 11 - Revenue from Contracts with Customers

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.

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.

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

For the three months ended March 31, 2026 2025

For the three months ended June 30, 2026 2025

(Dollars in thousands) Revenue (1)

12 unchanged sentences

Income from bank-owned life insurance

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

354 291 367 287

Total noninterest income 18,662 13,639 17,078 12,462

Total revenues $ 60,465 $ 13,639 $ 54,263 $ 12,462

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

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

For the six months ended June 30, 2026 2025

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

Revenue (1) ASC 606 Revenue (2)

Net interest income $ 82,328 $ — $ 73,607 $ —

Noninterest income:

Wealth management revenues 21,848 21,848 20,011 20,011

Mortgage banking revenues 6,518 — 5,338 —

Card interchange fees 2,690 2,690 2,756 2,756

Service charges on deposit accounts 1,627 1,627 1,552 1,552

Loan related derivative income 810 — 777 —

Income from bank-owned life insurance 1,789 — 1,595 —

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

— — 6,994 6,994

Other income 683 553 698 551

Total noninterest income 35,965 26,718 39,721 31,864

2 unchanged sentences

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

(3) For the three months ended March 31, 2025, included herein in accordance with sale-leaseback transaction provisions of ASC 842 and ASC 606.

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

(Dollars in thousands)

Three months ended March 31, 2026 2025

(Dollars in thousands) Three Months Six Months

Periods ended June 30, 2026 2025 2026 2025

Revenue recognized at a point in time:

5 unchanged sentences

Wealth management revenues

11,201 10,120 21,848 20,011

Service charges on deposit accounts

271 268 538 549

65 62 118 122

Total revenues from contracts with customers in scope of ASC 606

1 unchanged sentence

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

Receivables amounted to $ 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.

Receivables amounted to $ 7.0 million at both June 30, 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 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)

The balances of contract liabilities were insignificant at both June 30, 2026 and December 31, 2025 and were included in other liabilities in the Unaudited Consolidated Balance Sheets.

For commissions and incentives that are in scope of ASC 606, such as those paid to employees in our wealth management services and 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 $ 2.1 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 carrying value of contract cost assets amounted to $ 2.0 million and $ 2.3 million, respectively at June 30, 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.

17 unchanged sentences

and institutional trust services, including custody and fiduciary services.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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

1 unchanged sentence

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

The following tables present 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 March 31, 2026 2025 2026 2025 2026 2025

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

Three months ended June 30, 2026 2025 2026 2025 2026 2025

Total interest and dividend income $ 75,169 $ 78,846 $ — $ — $ 75,169 $ 78,846

Total interest expense 33,366 41,661 — — 33,366 41,661

24 unchanged sentences

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

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)

(Dollars in thousands) Banking Wealth Management Services Consolidated Total

Six months ended June 30, 2026 2025 2026 2025 2026 2025

Total interest and dividend income $ 150,151 $ 158,309 $ — $ — $ 150,151 $ 158,309

Total interest expense 67,823 84,702 — — 67,823 84,702

Net interest income 82,328 73,607 — — 82,328 73,607

Provision for credit losses 5,600 1,800 — — 5,600 1,800

Net interest income after provision for credit losses 76,728 71,807 — — 76,728 71,807

Noninterest income 13,680 19,355 22,285 20,366 35,965 39,721

Noninterest expenses:

Salaries and employee benefits 38,540 34,413 11,112 11,034 49,652 45,447

Outsourced services 7,186 6,639 1,463 2,111 8,649 8,750

Net occupancy 5,174 4,864 451 539 5,625 5,403

Equipment 1,673 1,670 117 151 1,790 1,821

Legal, audit and professional fees 1,240 1,052 520 424 1,760 1,476

FDIC deposit insurance costs

1,887 2,497 — — 1,887 2,497

Advertising and promotion 1,116 949 202 178 1,318 1,127

Amortization of intangibles — — 311 407 311 407

Other expenses 4,286 8,974 1,084 2,824 5,370 11,798

Total noninterest expenses 61,102 61,058 15,260 17,668 76,362 78,726

Income before income taxes 29,306 30,104 7,025 2,698 36,331 32,802

Income tax expense 6,160 6,630 1,590 748 7,750 7,378

Net income $ 23,146 $ 23,474 $ 5,435 $ 1,950 $ 28,581 $ 25,424

Total assets at period end $ 6,484,406 $ 6,683,840 $ 63,498 $ 61,327 $ 6,547,904 $ 6,745,167

Expenditures for long-lived assets 2,225 475 166 14 2,391 489

Depreciation expense (1)

1,481 1,598 141 172 1,622 1,770

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

For the six months ended June 30, 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 six months ended June 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.

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

Note 13 - Other Comprehensive Income

The following table presents the activity in other comprehensive income:

Three months ended March 31, 2026 2025

The following tables present the activity in other comprehensive income:

Three months ended June 30, 2026 2025

(Dollars in thousands) Pre-tax Amounts Income Tax

9 unchanged sentences

Defined Benefit Plan Obligations:

Amortization of net actuarial losses into earnings 25 ( 6 ) 19 29 ( 7 ) 22

Net change in defined benefit plan obligations 25 ( 6 ) 19 29 ( 7 ) 22

Total other comprehensive income $ 1,435 ($ 360 ) $ 1,075 $ 4,321 ($ 1,091 ) $ 3,230

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

Six months ended June 30, 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

Securities available for sale:

Change in fair value of available for sale debt securities ($ 1,810 ) $ 453 ($ 1,357 ) $ 19,748 ($ 4,986 ) $ 14,762

Cash flow hedges:

Change in fair value of cash flow hedges 1,466 ( 366 ) 1,100 ( 1,636 ) 413 ( 1,223 )

Net cash flow hedge losses reclassified into earnings (1)

2,894 ( 725 ) 2,169 3,869 ( 977 ) 2,892

Net change in fair value of cash flow hedges 4,360 ( 1,091 ) 3,269 2,233 ( 564 ) 1,669

Defined benefit plan obligations:

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

4 unchanged sentences

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

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 March 31, 2026

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

For the three months ended June 30, 2026

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

Other comprehensive (loss) income before reclassifications ( 23 ) 532 — 509

Amounts reclassified from AOCL

Net other comprehensive (loss) income ( 23 ) 1,079 19 1,075

Balance at June 30, 2026 ($ 75,100 ) $ 127 ($ 2,387 ) ($ 77,360 )

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

For the six months ended June 30, 2026

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

3 unchanged sentences

Net other comprehensive (loss) income ( 1,357 ) 3,269 37 1,949

Balance at June 30, 2026 ($ 75,100 ) $ 127 ($ 2,387 ) ($ 77,360 )

(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 June 30, 2025

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

Other comprehensive income (loss) before reclassifications 2,132 ( 379 ) — 1,753

Amounts reclassified from AOCL

— 1,455 22 1,477

Net other comprehensive income 2,132 1,076 22 3,230

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

(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 March 31, 2025

For the six months ended June 30, 2025

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

3 unchanged sentences

Net other comprehensive income 14,762 1,669 6,791 23,222

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

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

2 unchanged sentences

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

Three months ended March 31, 2026 2025

Three Months Six Months

Periods ended June 30, 2026 2025 2026 2025

Earnings for basic and diluted EPS calculations:

10 unchanged sentences

Weighted average anti-dilutive common stock equivalents (1)

368 516 369 487

(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.

20 unchanged sentences

Most standby letters of credit extend for one year.

At March 31, 2026 and December 31, 2025, there were no liabilities to beneficiaries resulting from standby letters of credit.

At June 30, 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) March 31,

(Dollars in thousands) June 30,

2026 December 31,

2 unchanged sentences

Standby letters of credit 7,002 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 March 31, 2026 is presented below:

The activity in the ACL on unfunded commitments for the three months ended June 30, 2026 is presented below:

(Dollars in thousands) Commercial Consumer

3 unchanged sentences

Ending Balance $ 717 $ 582 $ 1,299 $ 34 $ — $ 7 $ 7 $ 1,340

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

Condensed Notes to Unaudited Consolidated Financial Statements – (continued)

The activity in the ACL on unfunded commitments for the six months ended June 30, 2026 is presented below:

(Dollars in thousands) Commercial Consumer

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

Beginning Balance $ 518 $ 590 $ 1,108 $ 23 $ — $ 9 $ 9 $ 1,140

Provision 199 ( 8 ) 191 11 — ( 2 ) ( 2 ) 200

Ending Balance $ 717 $ 582 $ 1,299 $ 34 $ — $ 7 $ 7 $ 1,340

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

(Dollars in thousands) Commercial Consumer

Total Commercial Residential Real Estate Home Equity Other Total Consumer Total

2 unchanged sentences

Ending Balance $ 420 $ 741 $ 1,161 $ 20 $ — $ 9 $ 9 $ 1,190

The activity in the ACL on unfunded commitments for the six months ended June 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 ( 402 ) 152 ( 250 ) 2 — ( 2 ) ( 2 ) ( 250 )

Ending Balance $ 420 $ 741 $ 1,161 $ 20 $ — $ 9 $ 9 $ 1,190

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