# WASHINGTON TRUST BANCORP INC (WASH)

Informational only - not investment advice.

CIK: 0000737468
SIC: 6022 State Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/)
Latest 10-K filed: 2026-02-24
SEC page: https://www.sec.gov/edgar/browse/?CIK=737468
Filing source: https://www.sec.gov/Archives/edgar/data/737468/000073746826000034/wash-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-24 · accession 0000737468-26-000034 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000737468.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 229,048,000 USD | 2025 | verified |
| Net income | 52,244,000 USD | 2025 | verified |
| Assets | 6,621,694,000 USD | 2025 | verified |
| Free cash flow | 78,305,000 USD | 2025 | computed |
| Net margin | 22.81% | 2025 | computed |
| Revenue YoY | +127.57% | 2025 | computed |
| ROE | 9.61% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | WASH | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 22.8% | 21.9% | 56 | 149 |
| Revenue growth | 127.6% | 6.0% | 100 | 148 |
| FCF margin | 34.2% | 23.8% | 84 | 133 |
| ROE | 9.6% | 9.6% | 49 | 149 |
| ROA | 0.8% | 1.1% | 24 | 149 |
| Liabilities / equity | 11.18 | 8.04 | 92 | 149 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 229048000 | USD | 2025 | 2026-02-24 |
| Net income | 52244000 | USD | 2025 | 2026-02-24 |
| Assets | 6621694000 | USD | 2025 | 2026-02-24 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000737468.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 175,607,000 | 184,340,000 | 194,404,000 | 200,494,000 | 226,886,000 | 228,829,000 | 218,592,000 | 193,238,000 | 100,651,000 | 229,048,000 |
| Net income | 46,481,000 | 45,925,000 | 68,432,000 | 69,118,000 | 69,829,000 | 76,870,000 | 71,681,000 | 48,176,000 | -28,059,000 | 52,244,000 |
| Diluted EPS | 2.70 | 2.64 | 3.93 | 3.96 | 4.00 | 4.39 | 4.11 | 2.82 | -1.63 | 2.71 |
| Operating cash flow | 59,749,000 | 59,385,000 | 82,876,000 | 73,435,000 | 36,478,000 | 100,812,000 | 113,006,000 | 31,603,000 | 57,668,000 | 80,310,000 |
| Capital expenditures | 3,112,000 | 2,779,000 | 3,974,000 | 3,132,000 | 3,406,000 | 3,490,000 | 6,139,000 | 5,048,000 | 4,001,000 | 2,005,000 |
| Dividends paid | 24,637,000 | 26,300,000 | 29,312,000 | 34,189,000 | 35,499,000 | 36,349,000 | 37,647,000 | 38,631,000 | 38,397,000 | 43,325,000 |
| Share buybacks |  |  | 0.00 | 0.00 | 4,322,000 | 0.00 | 9,479,000 | 8,814,000 | 0.00 | 7,361,000 |
| Assets | 4,381,115,000 | 4,529,850,000 | 5,010,766,000 | 5,292,659,000 | 5,713,169,000 | 5,851,127,000 | 6,660,051,000 | 7,202,847,000 | 6,930,647,000 | 6,621,694,000 |
| Liabilities | 3,990,311,000 | 4,116,566,000 | 4,562,582,000 | 4,789,167,000 | 5,178,974,000 | 5,286,319,000 | 6,206,382,000 | 6,730,161,000 | 6,430,919,000 | 6,078,110,000 |
| Stockholders' equity | 390,804,000 | 413,284,000 | 448,184,000 | 503,492,000 | 534,195,000 | 564,808,000 | 453,669,000 | 472,686,000 | 499,728,000 | 543,584,000 |
| Free cash flow | 56,637,000 | 56,606,000 | 78,902,000 | 70,303,000 | 33,072,000 | 97,322,000 | 106,867,000 | 26,555,000 | 53,667,000 | 78,305,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 26.47% | 24.91% | 35.20% | 34.47% | 30.78% | 33.59% | 32.79% | 24.93% | -27.88% | 22.81% |
| Return on equity | 11.89% | 11.11% | 15.27% | 13.73% | 13.07% | 13.61% | 15.80% | 10.19% | -5.61% | 9.61% |
| Return on assets | 1.06% | 1.01% | 1.37% | 1.31% | 1.22% | 1.31% | 1.08% | 0.67% | -0.40% | 0.79% |
| Liabilities / equity | 10.21 | 9.96 | 10.18 | 9.51 | 9.69 | 9.36 | 13.68 | 14.24 | 12.87 | 11.18 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/WASH/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000737468.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.08 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.74 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 47,825,000 |  | 0.66 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 48,977,000 | 11,161,000 | 0.65 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 45,960,000 | 12,947,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 48,828,000 | 10,936,000 | 0.64 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 48,245,000 | 10,815,000 | 0.63 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 48,534,000 | 10,981,000 | 0.64 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 |  | -60,791,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 59,065,000 | 12,179,000 | 0.63 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 54,263,000 | 13,245,000 | 0.68 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 56,469,000 | 10,846,000 | 0.56 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 59,251,000 | 15,974,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 57,828,000 | 12,600,000 | 0.66 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 60,465,000 | 15,981,000 | 0.83 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from WASH's latest 10-K: [/company/WASH/business/](/company/WASH/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from WASH's latest 10-K: [/company/WASH/risk-factors/](/company/WASH/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/737468/000073746826000114/wash-20260630.htm

Extracted from a later financial-section MD&A body after Item 2 boundaries were low-confidence.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Management's Discussion and Analysis

Non-GAAP Financial Measures and Reconciliation to GAAP

In addition to evaluating the Corporation’s results of operations in accordance with GAAP, management supplements this evaluation with an analysis of certain non-GAAP financial measures, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets, and adjusted return on average equity.

We believe these non-GAAP financial measures are utilized by regulators and market analysts to evaluate the Corporation’s results of operations and financial condition, and therefore such information is useful to investors. In addition, these non-GAAP financial measures remove the impact of infrequent items that may obscure trends in the Corporation’s underlying performance. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Each presentation below reconciles the “as reported” GAAP measure to the adjusted non-GAAP measure.

-47-

Management's Discussion and Analysis

The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, and adjusted net income:

[[GREPCENT_TABLE]]
[["(Dollars in thousands, except per share amounts)"],["For the six months ended June 30,","","","","2026","2025"],["Adjusted Noninterest Income:"],["Noninterest income, as reported","","","","$35,965","","$39,721"],["Less adjustments:"],["Gain on sale of bank-owned properties, net (1)","","","","\u2014","","6,994"],["Adjusted noninterest income (non-GAAP)","","","","$35,965","","$32,727"],["Adjusted Noninterest Expense:"],["Noninterest expense, as reported","","","","$76,362","","$78,726"],["Less adjustments:"],["Pension plan settlement charge (1)","","","","\u2014","","6,436"],["Adjusted noninterest expense (non-GAAP)","","","","$76,362","","$72,290"],["Adjusted Income Before Income Taxes:"],["Income before income taxes, as reported","","","","$36,331","","$32,802"],["Less: total adjustments, pre-tax (1)","","","","\u2014","","558"],["Adjusted income before income taxes (non-GAAP)","","","","$36,331","","$32,244"],["Adjusted Income Tax Expense:"],["Income tax expense, as reported","","","","$7,750","","$7,378"],["Less: tax on total adjustments (1)","","","","\u2014","","141"],["Adjusted income tax expense (non-GAAP)","","","","$7,750","","$7,237"],["Adjusted Effective Tax Rate:"],["Effective tax rate, as reported (2)","","","","21.3","%","22.5","%"],["Less: impact of total adjustments (1)","","","","\u2014","","0.1"],["Adjusted effective tax rate (non-GAAP) (3)","","","","21.3","%","22.4","%"],["Adjusted Net Income:"],["Net income, as reported","","","","$28,581","","$25,424"],["Less: total adjustments, after-tax (1)","","","","\u2014","","417"],["Adjusted net income (non-GAAP)","","","","$28,581","","$25,007"]]
[[/GREPCENT_TABLE]]

(1)Recognized in the three months ended March 31, 2025.

(2)Calculated as income tax expense divided by income before income taxes.

(3)Calculated as income tax expense, adjusted for the tax impact of the adjustments as outlined in the table above, divided by income before income taxes, adjusted for the pre-tax impact of the adjustments as outlined in the table above.

-48-

Management's Discussion and Analysis

The following table presents adjusted diluted earnings per common share:

[[GREPCENT_TABLE]]
[["(Dollars in thousands, except per share amounts)"],["For the six months ended June 30,","","","","2026","2025"],["Adjusted Diluted Earnings per Common Share:"],["Diluted earnings per common share, as reported (1)","","","","$1.49","","$1.31"],["Less: impact of total adjustments (2)","","","","\u2014","","0.02"],["Adjusted diluted earnings per common share (non-GAAP) (3)","","","","$1.49","","$1.29"]]
[[/GREPCENT_TABLE]]

(1)Net income divided by weighted average diluted common and potential shares outstanding.

(2)Recognized in the three months ended March 31, 2025.

(3)Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding.

The following table presents adjusted return on average assets and adjusted return on average equity:

[[GREPCENT_TABLE]]
[["(Dollars in thousands)"],["For the six months ended June 30,","","","","2026","2025"],["Adjusted Return on Average Assets (1):"],["Net income, as reported","","","","$28,581","","$25,424"],["Less: total adjustments, after-tax (2)","","","","\u2014","","417"],["Adjusted net income (non-GAAP)","","","","28,581","","25,007"],["Total average assets, as reported","","","","6,515,072","","6,703,877"],["Return on average assets (3)","","","","0.88","%","0.76","%"],["Adjusted return on average assets (non-GAAP) (4)","","","","0.88","%","0.75","%"],["Adjusted Return on Average Equity (1):"],["Net income, as reported","","","","$28,581","","$25,424"],["Less: total adjustments, after-tax (2)","","","","\u2014","","417"],["Adjusted net income (non-GAAP)","","","","28,581","","25,007"],["Total average equity, as reported","","","","552,740","","518,408"],["Return on average equity (5)","","","","10.43","%","9.89","%"],["Adjusted return on average equity (non-GAAP) (6)","","","","10.43","%","9.73","%"]]
[[/GREPCENT_TABLE]]

(1)Annualized based on the actual number of days in the period.

(2)Recognized in the three months ended March 31, 2025.

(3)Net income divided by total average assets.

(4)Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets.

(5)Net income divided by total average equity.

(6)Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.

-49-

Management's Discussion and Analysis

Overview

Washington Trust offers a full range of financial services, including commercial, residential, and consumer lending, retail and commercial deposit products, and wealth management and trust services through its offices in Rhode Island, Massachusetts, and Connecticut.

Our largest source of operating income is net interest income, which is the difference between interest earned on loans and securities and interest paid on deposits and borrowings.  In addition, we generate noninterest income from a number of sources, including wealth management services, mortgage banking activities, and deposit services.  Our principal noninterest expenses include salaries and employee benefit costs, outsourced services (including software-as-a-service) provided by third-party vendors, occupancy and facility-related costs, and other administrative expenses.

We continue to leverage our strong regional brand to build market share and remain steadfast in our commitment to provide superior service. We believe the key to future growth is providing customers with convenient in-person service and digital banking solutions. We have plans to open two new full-service branches later in 2026; one in Pawtucket and another in Bristol, Rhode Island.

Results of Operations

Summary

The following table presents a summarized consolidated statement of operations:

[[GREPCENT_TABLE]]
[["(Dollars in thousands)","Three Months","","Six Months"],["","","","","Change","","","","","Change"],["Periods ended June 30,","2026","2025","","$","%","","2026","2025","","$","%"],["Net interest income","$41,803","","$37,185","","","$4,618","","12","%","","$82,328","","$73,607","","","$8,721","","12","%"],["Noninterest income","18,662","","17,078","","","1,584","","9","","","35,965","","39,721","","","(3,756)","","(9)"],["Total revenues","60,465","","54,263","","","6,202","","11","","","118,293","","113,328","","","4,965","","4"],["Provision for credit losses","1,600","","600","","","1,000","","167","","","5,600","","1,800","","","3,800","","211"],["Noninterest expense","38,597","","36,530","","","2,067","","6","","","76,362","","78,726","","","(2,364)","","(3)"],["Income before income taxes","20,268","","17,133","","","3,135","","18","","","36,331","","32,802","","","3,529","","11"],["Income tax expense","4,287","","3,888","","","399","","10","","","7,750","","7,378","","","372","","5"],["Net income","$15,981","","$13,245","","","$2,736","","21","%","","$28,581","","$25,424","","","$3,157","","12","%"],["Adjusted net income (non-GAAP)","$15,981","","$13,245","","","$2,736","","21","%","","$28,581","","$25,007","","","$3,574","","14","%"]]
[[/GREPCENT_TABLE]]

Net income totaled $16.0 million and $28.6 million, respectively, for the three and six months ended June 30, 2026, compared to $13.2 million and $25.4 million, respectively, reported for the same periods in 2025. The prior year results included the following infrequent transactions:

•In the first quarter of 2025, sale-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 within noninterest income.

•Also in the first quarter of 2025 and in connection with the termination of the Corporation's qualified pension plan, a pre-tax non-cash pension plan settlement charge of $6.4 million was recognized within noninterest expenses.

Excluding these items, adjusted net income (non-GAAP) for the three and six months ended June 30, 2026 was $16.0 million and $28.6 million, respectively, compared to $13.2 million and $25.0 million, respectively, for the same periods in 2025. These results reflected higher net interest income, as well as growth in wealth management and mortgage banking revenues, partially offset by an elevated provision for credit losses and higher salaries and benefits costs.

-50-

Management's Discussion and Analysis

The following table presents a summary of performance metrics and ratios:

[[GREPCENT_TABLE]]
[["","Three Months","","Six Months"],["Periods ended June 30,","2026","2025","","2026","2025"],["Diluted earnings per common share","$0.83","","$0.68","","","$1.49","","$1.31"],["Adjusted diluted earnings per common share (non-GAAP)","$0.83","","$0.68","","","$1.49","","$1.29"],["Return on average assets (net income divided by average assets)","0.99","%","0.80","%","","0.88","%","0.76","%"],["Adjusted return on average assets (non-GAAP)","0.99","%","0.80","%","","0.88","%","0.75","%"],["Return on average equity (net income divided by average equity)","11.61","%","10.14","%","","10.43","%","9.89","%"],["Adjusted return on average equity (non-GAAP)","11.61","%","10.14","%","","10.43","%","9.73","%"]]
[[/GREPCENT_TABLE]]

-51-

Management's Discussion and Analysis

Average Balances / Net Interest Margin - Fully Taxable Equivalent Basis

The following table presents daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis.  Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate. Unrealized gains (losses) on available for sale securities, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and yield calculations. Nonaccrual loans are included in amounts presented for loans. Interest income attributable to nonaccrual loans is included in accordance with accounting policy as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/737468/000073746826000034/wash-20251231.htm
Complete FY 2025 MD&A: /company/WASH/mda/fy2025/

Extracted from a later financial-section MD&A body after the formal Item 7 span was a short reference.
Confidence: high
Filing date: 2026-02-24
Report date: 2025-12-31

Management's Discussion and Analysis

The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, and adjusted net income available to common shareholders:

[[GREPCENT_TABLE]]
[["(Dollars in thousands, except per share amounts)"],["Years Ended December 31,","2025","2024"],["Adjusted Noninterest Income:"],["Noninterest income (loss), as reported","$75,860","","($27,797)"],["Less adjustments:"],["Realized losses on securities, net","\u2014","","(31,047)"],["Losses on sale of portfolio loans, net","\u2014","","(62,888)"],["Gain on sale of bank-owned properties, net","6,994","","988"],["Litigation settlement income","\u2014","","2,100"],["Total adjustments, pre-tax","6,994","","(90,847)"],["Adjusted noninterest income (non-GAAP)","$68,866","","$63,050"],["Adjusted Noninterest Expense:"],["Noninterest expense, as reported","$152,435","","$137,069"],["Less adjustments:"],["Pension plan settlement charge","6,436","","\u2014"],["Total adjustments, pre-tax","6,436","","\u2014"],["Adjusted noninterest expense (non-GAAP)","$145,999","","$137,069"],["Adjusted Income Before Income Taxes:"],["Income (loss) before income taxes, as reported","$67,413","","($38,818)"],["Less: total adjustments, pre-tax","558","","(90,847)"],["Adjusted income before income taxes (non-GAAP)","$66,855","","$52,029"],["Adjusted Income Tax Expense:"],["Income tax expense (benefit), as reported","$15,169","","($10,759)"],["Less: tax on total adjustments","141","","(21,920)"],["Adjusted income tax expense (non-GAAP)","$15,028","","$11,161"],["Adjusted Effective Tax Rate:"],["Effective tax rate, as reported (1)","22.5","%","27.7","%"],["Less: impact of adjustments","\u2014","","6.2"],["Adjusted effective tax rate (non-GAAP) (2)","22.5","%","21.5","%"],["Adjusted Net Income:"],["Net income (loss), as reported","$52,244","","($28,059)"],["Less: total adjustments, after-tax","417","","(68,927)"],["Adjusted net income (non-GAAP)","$51,827","","$40,868"],["Adjusted Net Income Available to Common Shareholders:"],["Net income (loss) available to common shareholders, as reported","$52,244","","($28,038)"],["Less: total adjustments available to common shareholders, after-tax","417","","(68,906)"],["Adjusted net income available to common shareholders (non-GAAP)","$51,827","","$40,868"]]
[[/GREPCENT_TABLE]]

(1)Calculated as income tax expense (benefit) divided by income (loss) before income taxes.

(2)Calculated as income tax expense (benefit), adjusted for the tax impact of the adjustments as outlined in the table above, divided by income (loss) before income taxes, adjusted for the pre-tax impact of the adjustments as outlined in the table above.

-32-

Management's Discussion and Analysis

The following table presents adjusted diluted earnings per common share and adjusted dividend payout ratio:

[[GREPCENT_TABLE]]
[["(Dollars in thousands, except per share amounts)"],["Years Ended December 31,","2025","2024"],["Adjusted Diluted Earnings per Common Share:"],["Diluted earnings (loss) per common share, as reported (1)","$2.71","","($1.63)"],["Less: impact of adjustments","0.02","","(4.00)"],["Adjusted diluted earnings per common share (non-GAAP) (2)","$2.69","","$2.37"],["Adjusted Dividend Payout Ratio:"],["Cash dividends declared per share, as reported","$2.24","","$2.24"],["Diluted earnings (loss) per common share, as reported","2.71","","(1.63)"],["Less: impact of adjustments","0.02","","(4.00)"],["Adjusted diluted earnings per common share (non-GAAP)","$2.69","","$2.37"],["Dividend payout ratio, as reported (3)","82.66","%","(137.42","%)"],["Adjusted dividend payout ratio (non-GAAP) (4)","83.27","%","94.51","%"]]
[[/GREPCENT_TABLE]]

(1)Net income (loss) available to common shareholders divided by weighted average diluted common and potential shares outstanding.

(2)Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding.

(3)Cash dividends declared per share divided by diluted earnings (loss) per common share.

(4)Cash dividends declared per share divided by diluted earnings (loss) per common share, adjusted for the after-tax impact of adjustments as outlined in the table above.

The following table presents adjusted return on average assets and adjusted return on average equity:

[[GREPCENT_TABLE]]
[["(Dollars in thousands)"],["Years Ended December 31,","2025","2024"],["Adjusted Return on Average Assets:"],["Net (loss) income, as reported","$52,244","","($28,059)"],["Less: adjustments, after-tax","417","","(68,927)"],["Adjusted net income (non-GAAP)","51,827","","40,868"],["Total average assets, as reported","6,698,401","","7,181,162"],["Return on average assets (1)","0.78","%","(0.39","%)"],["Adjusted return on average assets (non-GAAP) (2)","0.77","%","0.57","%"],["Adjusted Return on Average Equity:"],["Net (loss) income available to common shareholders, as reported","$52,244","","($28,038)"],["Less: adjustments, after-tax","417","","(68,906)"],["Adjusted net income available to common shareholders (non-GAAP)","51,827","","40,868"],["Total average equity, as reported","526,717","","479,777"],["Return on average equity (3)","9.92","%","(5.84","%)"],["Adjusted return on average equity (non-GAAP) (4)","9.84","%","8.52","%"]]
[[/GREPCENT_TABLE]]

(1)Net income (loss) divided by total average assets.

(2)Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets.

(3)Net income (loss) available to common shareholders divided by total average equity.

(4)Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.

-33-

Management's Discussion and Analysis

Overview

Washington Trust offers a full range of financial services, including commercial, residential and consumer lending, retail and commercial deposit products, and wealth management and trust services through its offices in Rhode Island, Massachusetts and Connecticut.

Our largest source of operating income is net interest income, which is the difference between interest earned on loans and securities and interest paid on deposits and borrowings.  In addition, we generate noninterest income from a number of sources, including wealth management services, mortgage banking activities, and deposit services.  Our principal noninterest expenses include salaries and employee benefit costs, outsourced services (including software-as-a-service) provided by third-party vendors, occupancy and facility-related costs, and other administrative expenses.

We continue to leverage our strong regional brand to build market share and remain steadfast in our commitment to provide superior service. We believe the key to future growth is providing customers with convenient in-person service and digital banking solutions. We plan to open a new full-service branch in Pawtucket, Rhode Island in the latter half of 2026.

Results of Operations

Summary

The following table presents a summarized consolidated statement of operations:

[[GREPCENT_TABLE]]
[["(Dollars in thousands)","","","","","Change"],["Years Ended December 31,","2025","2024","","","$","%"],["Net interest income","$153,188","","$128,448","","","","$24,740","","19","%"],["Noninterest income (loss)","75,860","","(27,797)","","","","103,657","","373"],["Total revenues","229,048","","100,651","","","","128,397","","128"],["Provision for credit losses","9,200","","2,400","","","","6,800","","283"],["Noninterest expense","152,435","","137,069","","","","15,366","","11"],["Income (loss) before income taxes","67,413","","(38,818)","","","","106,231","","274"],["Income tax expense (benefit)","15,169","","(10,759)","","","","25,928","","241"],["Net income (loss)","$52,244","","($28,059)","","","","$80,303","","286","%"],["Adjusted net income (non-GAAP)","$51,827","","$40,868","","","","$10,959","","27","%"]]
[[/GREPCENT_TABLE]]

Net income totaled $52.2 million for 2025, compared to a net loss of $28.1 million reported for 2024. These results included:

•In 2025, sale-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 within noninterest income.

•Also in 2025, and in connection with the termination of the Corporation's qualified pension plan, a pre-tax non-cash pension plan settlement charge of $6.4 million was recognized within noninterest expenses.

•In December 2024, the Bancorp completed an underwritten public offering of its common stock and used the $70.5 million in net proceeds to invest in the Bank and execute balance sheet repositioning transactions, including the sale of lower-yielding loans and securities, the purchase of debt securities, and the repayment of wholesale funding balances. As a result:

◦Included in noninterest income (loss) in 2024 was a net pre-tax realized loss of $31.0 million on the sale of available for sale debt securities.

◦Included in noninterest income (loss) in 2024 was a net pre-tax loss of $62.9 million when residential mortgage loans, that the Bank committed to sell, were reclassified to held for sale and written down to a fair value. The sale of these loans was completed on January 24, 2025.

◦The net proceeds from the equity offering and the loan sale were used to pay down wholesale funding balances in December 2024 and the first quarter of 2025.

•Also in 2024, noninterest income (loss) included a net gain of $988 thousand recognized on the sale of a bank-owned operations facility and income of $2.1 million associated with a litigation settlement.

-34-

Management's Discussion and Analysis

Excluding these infrequent transactions, adjusted net income (non-GAAP) was $51.8 million in 2025, compared to $40.9 million in 2024. These results were driven by an increase in net interest income, largely reflecting the benefits of the balance sheet repositioning transactions mentioned above, and growth in wealth management and mortgage banking revenues, and were partially offset by higher salaries and benefits costs and an elevated provision for credit losses.

The following table presents a summary of performance metrics and ratios:

[[GREPCENT_TABLE]]
[["Years Ended December 31,","2025","2024"],["Diluted earnings (loss) per common share","$2.71","","($1.63)"],["Adjusted diluted earnings per common share (non-GAAP)","$2.69","","$2.37"],["Return on average assets","0.78","%","(0.39","%)"],["Adjusted return on average assets (non-GAAP)","0.77","%","0.57","%"],["Return on average equity","9.92","%","(5.84","%)"],["Adjusted return on average equity (non-GAAP)","9.84","%","8.52","%"]]
[[/GREPCENT_TABLE]]

-35-

Management's Discussion and Analysis

Average Balances/Net Interest Margin - Fully Taxable Equivalent Basis

The following table presents daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis.  Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/WASH/mda/fy2025/
All MD&A years: /company/WASH/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/WASH/mda/fy2024/): filed 2025-02-25; accession 0000737468-25-000007 (https://www.sec.gov/Archives/edgar/data/737468/000073746825000007/wash-20241231.htm)
- [FY 2023 MD&A](/company/WASH/mda/fy2023/): filed 2024-02-26; accession 0000737468-24-000012 (https://www.sec.gov/Archives/edgar/data/737468/000073746824000012/wash-20231231.htm)
- [FY 2022 MD&A](/company/WASH/mda/fy2022/): filed 2023-02-23; accession 0000737468-23-000008 (https://www.sec.gov/Archives/edgar/data/737468/000073746823000008/wash-20221231.htm)
- [FY 2021 MD&A](/company/WASH/mda/fy2021/): filed 2022-02-24; accession 0000737468-22-000015 (https://www.sec.gov/Archives/edgar/data/737468/000073746822000015/wash-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/WASH.md · JSON record: /company/WASH.json · verified financials: /company/WASH/financials.json / /company/WASH/financials.csv · machine TOC for the whole site: /llms.txt