Washington Trust Bancorp Inc 8-K, filed Jan 29, 2025

Washington Trust Bancorp Inc (WASH)

8-K 2025-01-29 For: 2025-01-29

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Added on April 04, 2026

About this 8-K

Washington Trust Bancorp Inc filed this 8-K on January 29, 2025.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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23 Broad Street
Westerly,	Rhode Island	02891
(Address of principal executive offices)		(Zip Code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
COMMON STOCK, $.0625 PAR VALUE PER SHARE	WASH	The NASDAQ Stock Market LLC


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act.			☐


Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; Dollars in thousands)

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023
Assets:
Cash and due from banks	$109,902	$206,971	$103,877	$102,136	$86,824
Short-term investments	3,987	3,772	3,654	3,452	3,360
Mortgage loans held for sale, at fair value	21,708	20,864	26,116	25,462	20,077
Mortgage loans held for sale, at lower of cost or market	281,706	—	—	—	—

Available for sale debt securities, at fair value	916,305	973,266	951,828	970,060	1,000,380


Federal Home Loan Bank stock, at cost	49,817	57,439	66,166	55,512	51,893
Loans:





Total loans	5,137,838	5,514,870	5,629,102	5,685,232	5,647,706
Less: allowance for credit losses on loans	41,960	42,630	42,378	41,905	41,057
Net loans	5,095,878	5,472,240	5,586,724	5,643,327	5,606,649
Premises and equipment, net	26,873	32,145	31,866	31,914	32,291
Operating lease right-of-use assets	26,943	27,612	28,387	29,216	29,364
Investment in bank-owned life insurance	106,777	105,998	105,228	104,475	103,736
Goodwill	63,909	63,909	63,909	63,909	63,909
Identifiable intangible assets, net	2,885	3,089	3,295	3,503	3,711
Other assets	223,957	174,266	213,310	216,158	200,653
Total assets	$6,930,647	$7,141,571	$7,184,360	$7,249,124	$7,202,847
Liabilities:
Deposits:
Noninterest-bearing deposits	$661,776	$665,706	$645,661	$648,929	$693,746
Interest-bearing deposits	4,454,024	4,506,184	4,330,465	4,698,964	4,654,414





Total deposits	5,115,800	5,171,890	4,976,126	5,347,893	5,348,160
Federal Home Loan Bank advances	1,125,000	1,300,000	1,550,000	1,240,000	1,190,000

Junior subordinated debentures	22,681	22,681	22,681	22,681	22,681
Operating lease liabilities	29,578	30,237	31,012	31,837	32,027
Other liabilities	137,860	114,534	133,584	139,793	137,293
Total liabilities	6,430,919	6,639,342	6,713,403	6,782,204	6,730,161
Shareholders’ Equity:
Common stock	1,223	1,085	1,085	1,085	1,085
Paid-in capital	196,947	126,698	125,898	126,785	126,150
Retained earnings	434,014	505,654	504,350	503,175	501,917
Accumulated other comprehensive loss	(119,171)	(117,158)	(146,326)	(148,913)	(141,153)
Treasury stock, at cost	(13,285)	(14,050)	(14,050)	(15,212)	(15,313)
Total shareholders’ equity	499,728	502,229	470,957	466,920	472,686
Total liabilities and shareholders’ equity	$6,930,647	$7,141,571	$7,184,360	$7,249,124	$7,202,847


Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars and shares in thousands, except per share amounts)
	For the Three Months Ended					For the Twelve Months Ended
	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Interest income:
Interest and fees on loans	$71,432	$75,989	$76,240	$75,636	$74,236	$299,297	$270,330
Interest on mortgage loans held for sale	762	366	392	255	255	1,775	980
Taxable interest on debt securities	7,015	6,795	6,944	7,096	7,191	27,850	29,059
Nontaxable interest on debt securities	8	—	—	—	—	8	—
Dividends on Federal Home Loan Bank stock	1,312	1,262	1,124	1,073	982	4,771	3,315
Other interest income	1,310	3,174	1,297	1,196	1,282	6,977	4,975
Total interest and dividend income	81,839	87,586	85,997	85,256	83,946	340,678	308,659
Interest expense:
Deposits	34,135	37,203	36,713	38,047	37,067	146,098	120,429
Federal Home Loan Bank advances	14,388	17,717	17,296	15,138	13,814	64,539	49,589
Junior subordinated debentures	380	404	403	406	411	1,593	1,543

Total interest expense	48,903	55,324	54,412	53,591	51,292	212,230	171,561
Net interest income	32,936	32,262	31,585	31,665	32,654	128,448	137,098
Provision for credit losses	1,000	200	500	700	1,200	2,400	3,200
Net interest income after provision for credit losses	31,936	32,062	31,085	30,965	31,454	126,048	133,898
Noninterest income:
Wealth management revenues	10,049	9,989	9,678	9,338	8,881	39,054	35,540

Mortgage banking revenues	2,848	2,866	2,761	2,506	1,554	10,981	6,660
Card interchange fees	1,255	1,321	1,275	1,145	1,254	4,996	4,921
Service charges on deposit accounts	794	784	769	685	688	3,032	2,806
Loan related derivative income	8	126	49	284	112	467	1,390
Income from bank-owned life insurance	779	770	753	739	734	3,041	3,488
Realized losses on securities, net	(31,047)	—	—	—	—	(31,047)	—

Losses on sale of portfolio loans, net	(62,888)	—	—	—	—	(62,888)	—
Other income	310	416	1,375	2,466	83	4,567	1,335




Total noninterest (loss) income	(77,892)	16,272	16,660	17,163	13,306	(27,797)	56,140
Noninterest expense:
Salaries and employee benefits	21,875	21,350	21,260	21,775	18,464	86,260	82,458
Outsourced services	4,197	4,185	4,096	3,780	3,667	16,258	14,521
Net occupancy	2,428	2,399	2,397	2,561	2,396	9,785	9,636
Equipment	936	924	958	1,020	1,133	3,838	4,318

Legal, audit, and professional fees	845	836	741	706	959	3,128	3,891
FDIC deposit insurance costs	1,266	1,402	1,404	1,441	1,239	5,513	4,667
Advertising and promotion	560	857	661	548	938	2,626	2,562
Amortization of intangibles	204	206	208	208	208	826	843




Other expenses	1,981	2,345	2,185	2,324	3,583	8,835	10,661
Total noninterest expense	34,292	34,504	33,910	34,363	32,587	137,069	133,557
(Loss) income before income taxes	(80,248)	13,830	13,835	13,765	12,173	(38,818)	56,481
Income tax (benefit) expense	(19,457)	2,849	3,020	2,829	(774)	(10,759)	8,305
Net (loss) income	($60,791)	$10,981	$10,815	$10,936	$12,947	($28,059)	$48,176

Net (loss) income available to common shareholders	($60,776)	$10,973	$10,807	$10,924	$12,931	($28,038)	$48,091

Weighted average common shares outstanding:
Basic	17,452	17,058	17,052	17,033	17,029	17,149	17,033
Diluted	17,565	17,140	17,110	17,074	17,070	17,223	17,062
(Loss) earnings per common share:
Basic	($3.48)	$0.64	$0.63	$0.64	$0.76	($1.63)	$2.82
Diluted	($3.46)	$0.64	$0.63	$0.64	$0.76	($1.63)	$2.82

Cash dividends declared per share	$0.56	$0.56	$0.56	$0.56	$0.56	$2.24	$2.24


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


(401)			348-1200
(Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)

	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023
Share and Equity Related Data:
Book value per share	$25.93		$29.44		$27.61		$27.41		$27.75
Tangible book value per share - Non-GAAP (1)	$22.46		$25.51		$23.67		$23.45		$23.78
Market value per share	$31.35		$32.21		$27.41		$26.88		$32.38
Shares issued at end of period	19,562		17,363		17,363		17,363		17,363
Shares outstanding at end of period	19,274		17,058		17,058		17,033		17,031

Capital Ratios (2):
Tier 1 risk-based capital	11.64	%	11.39	%	11.01	%	10.84	%	10.86	%
Total risk-based capital	12.47	%	12.21	%	11.81	%	11.62	%	11.58	%
Tier 1 leverage ratio	8.13	%	7.85	%	7.82	%	7.81	%	7.80	%
Common equity tier 1	11.20	%	10.95	%	10.59	%	10.42	%	10.44	%

Balance Sheet Ratios:
Equity to assets	7.21	%	7.03	%	6.56	%	6.44	%	6.56	%
Tangible equity to tangible assets - Non-GAAP (1)	6.31	%	6.15	%	5.67	%	5.56	%	5.68	%
Loans to deposits (3)	105.5	%	106.2	%	112.8	%	106.0	%	105.2	%


Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN COMPOSITION
(Unaudited; Dollars in thousands)

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023
Loans:
Commercial real estate (1)	$2,154,504	$2,102,091	$2,191,996	$2,158,518	$2,106,359
Commercial & industrial	542,474	566,279	558,075	613,376	605,072
Total commercial	2,696,978	2,668,370	2,750,071	2,771,894	2,711,431

Residential real estate (2)	2,126,171	2,529,397	2,558,533	2,585,524	2,604,478

Home equity	297,119	299,379	302,027	309,302	312,594
Other	17,570	17,724	18,471	18,512	19,203
Total consumer	314,689	317,103	320,498	327,814	331,797
Total loans	$5,137,838	$5,514,870	$5,629,102	$5,685,232	$5,647,706


	December 31, 2024			December 31, 2023
	Balance	% of Total		Balance	% of Total
Commercial Real Estate Loans by Property Location:
Connecticut	$839,079	39	%	$815,975	39	%
Massachusetts	663,026	31		645,736	31
Rhode Island	434,244	20		430,899	20
Subtotal	1,936,349	90		1,892,610	90
All other states	218,155	10		213,749	10
Total commercial real estate loans	$2,154,504	100	%	$2,106,359	100	%

Residential Real Estate Loans by Property Location:
Massachusetts	$1,530,847	72	%	$1,928,206	74	%
Rhode Island	443,237	21		481,289	19
Connecticut	128,933	6		165,933	6
Subtotal	2,103,017	99		2,575,428	99
All other states	23,154	1		29,050	1
Total residential real estate loans	$2,126,171	100	%	$2,604,478	100	%


WASHINGTON TRUST BANCORP, INC.


N/A
(Former name or address, if changed from last report)


	For the Three Months Ended										For the Twelve Months Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
Performance Ratios (4):
Net interest margin (5)	1.95	%	1.85	%	1.83	%	1.84	%	1.88	%	1.87	%	2.05	%
Return on average assets (6)	(3.45	%)	0.60	%	0.60	%	0.61	%	0.71	%	(0.39	%)	0.69	%
Adjusted return on average assets - Non-GAAP (1)	0.59	%	0.60	%	0.56	%	0.52	%	0.53	%	0.57	%	0.64	%

Return on average tangible assets - Non-GAAP (1)	0.60	%	0.61	%	0.57	%	0.53	%	0.54	%	0.57	%	0.65	%
Return on average equity (7)	(48.25	%)	8.99	%	9.43	%	9.33	%	11.77	%	(5.84	%)	10.57	%
Adjusted return on average equity - Non-GAAP (1)	8.29	%	8.99	%	8.79	%	7.99	%	8.81	%	8.52	%	9.85	%

Return on average tangible equity - Non-GAAP (1)	9.57	%	10.43	%	10.29	%	9.32	%	10.43	%	9.91	%	11.59	%
Efficiency ratio (8)	(76.3	%)	71.1	%	70.3	%	70.4	%	70.9	%	136.2	%	69.1	%
Adjusted efficiency ratio - Non-GAAP (1)	70.0	%	71.1	%	71.8	%	73.5	%	70.9	%	71.6	%	69.1	%


Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars in thousands)

	For the Three Months Ended					For the Twelve Months Ended
	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Dec 31, 2024	Dec 31, 2023
Wealth Management Results
Wealth Management Revenues:


Asset-based revenues	$9,910	$9,770	$9,239	$9,089	$8,634	$38,008	$34,308
Transaction-based revenues	139	219	439	249	247	1,046	1,232
Total wealth management revenues	$10,049	$9,989	$9,678	$9,338	$8,881	$39,054	$35,540

Assets Under Administration (AUA):
Balance at beginning of period	$7,052,408	$6,803,491	$6,858,322	$6,588,406	$6,131,395	$6,588,406	$5,961,990
Net investment appreciation & income	57,706	372,027	108,529	364,244	503,209	902,506	894,990
Net client asset outflows	(32,312)	(123,110)	(163,360)	(94,328)	(46,198)	(413,110)	(268,574)

Balance at end of period	$7,077,802	$7,052,408	$6,803,491	$6,858,322	$6,588,406	$7,077,802	$6,588,406

Percentage of AUA that are managed assets	91%	91%	91%	91%	91%	91%	91%

Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (1)	$2,493	$2,492	$2,205	$1,586	$1,133	$8,776	$4,282
Changes in fair value, net (2)	(317)	(28)	20	324	(65)	(1)	232
Loan servicing fee income, net (3)	672	402	536	596	486	2,206	2,146
Total mortgage banking revenues	$2,848	$2,866	$2,761	$2,506	$1,554	$10,981	$6,660

Residential Mortgage Loan Originations:
Originations for retention in portfolio (4)	$15,155	$26,317	$26,520	$24,474	$39,827	$92,466	$459,892
Originations for sale to secondary market (5)	114,137	115,117	110,728	78,098	76,495	418,080	260,592
Total mortgage loan originations	$129,292	$141,434	$137,248	$102,572	$116,322	$510,546	$720,484

Residential Mortgage Loans Sold:
Sold with servicing rights retained	$62,410	$17,881	$24,570	$24,057	$28,290	$128,918	$108,177
Sold with servicing rights released (5)	50,697	102,457	85,482	48,587	39,170	287,223	141,795
Total mortgage loans sold	$113,107	$120,338	$110,052	$72,644	$67,460	$416,141	$249,972


			Weighted Average		Asset Quality
	Balance (2) (3)	Average Loan Size (4)	Loan to Value	Debt Service Coverage	Pass	Special Mention	Classified	Nonaccrual (included in Classified)
Non-Owner Occupied Commercial Real Estate Office (inclusive of Construction):
Class A	$112,478	$9,444	58%	1.73x	$106,211	$—	$6,267	$—
Class B	79,709	4,223	59%	1.51x	69,656	—	10,053	10,053
Class C	14,684	2,098	56%	1.57x	12,447	2,237	—	—
Medical Office	55,909	7,498	69%	1.33x	55,909	—	—	—
Lab Space	27,073	23,466	91%	1.20x	—	6,116	20,957	—
Total office at December 31, 2024 (1)	$289,853	$6,566	65%	1.51x	$244,223	$8,353	$37,277	$10,053
Total office at September 30, 2024	$296,545	$6,584	68%	1.45x	$248,050	$6,291	$42,204	$18,259
Total office linked quarter change	($6,692)	($18)	(3%)	0.06x	($3,827)	$2,062	($4,927)	($8,206)


Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY
(Unaudited; Dollars in thousands)

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023
Deposits:
Noninterest-bearing demand deposits	$661,776	$665,706	$645,661	$648,929	$693,746
Interest-bearing demand deposits (in-market)	592,904	596,319	532,316	536,923	504,959
NOW accounts	692,812	685,531	722,797	735,617	767,036
Money market accounts	1,154,745	1,146,426	1,086,088	1,111,510	1,096,959
Savings accounts	523,915	490,285	485,208	484,678	497,223
Time deposits (in-market)	1,192,110	1,207,626	1,164,839	1,156,516	1,134,187
In-market deposits	4,818,262	4,791,893	4,636,909	4,674,173	4,694,110

Wholesale brokered time deposits	297,538	379,997	339,217	673,720	654,050

Total deposits	$5,115,800	$5,171,890	$4,976,126	$5,347,893	$5,348,160


	Dec 31, 2024		Dec 31, 2023
Contingent Liquidity:
Federal Home Loan Bank of Boston (1)	$752,951		$1,086,607
Federal Reserve Bank of Boston	70,286		65,759
Available cash liquidity (2)	36,647		54,970
Unencumbered securities	597,771		680,857
Total	$1,457,655		$1,888,193

Percentage of total contingent liquidity to uninsured deposits	106.9	%	149.8	%
Percentage of total contingent liquidity to uninsured deposits, after exclusions	136.1	%	195.9	%


Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)

	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023
Asset Quality Ratios:
Nonperforming assets to total assets	0.34	%	0.44	%	0.43	%	0.43	%	0.63	%
Nonaccrual loans to total loans	0.45	%	0.56	%	0.54	%	0.54	%	0.79	%
Total past due loans to total loans	0.23	%	0.37	%	0.21	%	0.18	%	0.20	%
Allowance for credit losses on loans to nonaccrual loans	180.03	%	136.89	%	139.04	%	136.45	%	92.02	%
Allowance for credit losses on loans to total loans	0.82	%	0.77	%	0.75	%	0.74	%	0.73	%

Nonperforming Assets:
Commercial real estate	$10,053		$18,259		$18,390		$18,729		$32,827
Commercial & industrial	515		616		642		668		682
Total commercial	10,568		18,875		19,032		19,397		33,509
Residential real estate	10,767		10,517		9,744		9,722		9,626
Home equity	1,972		1,750		1,703		1,591		1,483
Other consumer	—		—		—		—		—
Total consumer	1,972		1,750		1,703		1,591		1,483
Total nonaccrual loans	23,307		31,142		30,479		30,710		44,618
Other real estate owned	—		—		683		683		683
Total nonperforming assets	$23,307		$31,142		$31,162		$31,393		$45,301

Past Due Loans (30 days or more past due):
Commercial real estate	$—		$10,476		$—		$—		$—
Commercial & industrial	900		3		2		270		10
Total commercial	900		10,479		2		270		10
Residential real estate	7,741		6,947		8,534		6,858		8,116
Home equity	2,947		2,800		3,324		2,879		3,196
Other consumer	394		75		20		32		23
Total consumer	3,341		2,875		3,344		2,911		3,219
Total past due loans	$11,982		$20,301		$11,880		$10,039		$11,345

Accruing loans 90 days or more past due	$—		$—		$—		$—		$—
Nonaccrual loans included in past due loans	$6,447		$18,119		$8,409		$5,111		$6,877


Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
For the Three Months Ended	December 31, 2024				September 30, 2024				Change
	Average Balance	Interest	Yield/ Rate		Average Balance	Interest	Yield/ Rate			Average Balance	Interest	Yield/ Rate

Assets:
Cash, federal funds sold, and short-term investments	$110,327	$1,310	4.72	%	$229,326	$3,174	5.51	%		($118,999)	($1,864)	(0.79	%)
Mortgage loans held for sale	75,731	762	4.00		21,899	366	6.65			53,832	396	(2.65)
Taxable debt securities	1,087,076	7,016	2.57		1,109,699	6,794	2.44			(22,623)	222	0.13
Nontaxable debt securities	650	8	4.90		85	1	4.68			565	7	0.22

Total securities	1,087,726	7,024	2.57		1,109,784	6,795	2.44			(22,058)	229	0.13
FHLB stock	52,508	1,312	9.94		62,420	1,262	8.04			(9,912)	50	1.90


Commercial real estate	2,130,040	31,878	5.95		2,143,466	34,518	6.41			(13,426)	(2,640)	(0.46)
Commercial & industrial	548,871	8,528	6.18		573,400	9,368	6.50			(24,529)	(840)	(0.32)
Total commercial	2,678,911	40,406	6.00		2,716,866	43,886	6.43			(37,955)	(3,480)	(0.43)
Residential real estate	2,446,905	25,681	4.18		2,542,939	26,568	4.16			(96,034)	(887)	0.02
Home equity	295,879	5,366	7.21		299,227	5,554	7.38			(3,348)	(188)	(0.17)
Other	17,534	217	4.92		18,097	215	4.73			(563)	2	0.19
Total consumer	313,413	5,583	7.09		317,324	5,769	7.23			(3,911)	(186)	(0.14)
Total loans	5,439,229	71,670	5.24		5,577,129	76,223	5.44			(137,900)	(4,553)	(0.20)
Total interest-earning assets	6,765,521	82,078	4.83		7,000,558	87,820	4.99			(235,037)	(5,742)	(0.16)
Noninterest-earning assets	246,318				254,008					(7,690)
Total assets	$7,011,839				$7,254,566					($242,727)
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits (in-market)	$602,737	$6,098	4.02	%	$556,245	$6,288	4.50	%		$46,492	($190)	(0.48	%)
NOW accounts	680,763	404	0.24		693,724	405	0.23			(12,961)	(1)	0.01
Money market accounts	1,160,962	10,139	3.47		1,122,649	11,221	3.98			38,313	(1,082)	(0.51)
Savings accounts	502,910	1,164	0.92		484,068	984	0.81			18,842	180	0.11
Time deposits (in-market)	1,193,733	11,840	3.95		1,188,452	12,234	4.10			5,281	(394)	(0.15)
Interest-bearing in-market deposits	4,141,105	29,645	2.85		4,045,138	31,132	3.06			95,967	(1,487)	(0.21)

Wholesale brokered time deposits	345,668	4,490	5.17		458,114	6,071	5.27			(112,446)	(1,581)	(0.10)

Total interest-bearing deposits	4,486,773	34,135	3.03		4,503,252	37,203	3.29			(16,479)	(3,068)	(0.26)
FHLB advances	1,188,804	14,388	4.81		1,423,804	17,717	4.95			(235,000)	(3,329)	(0.14)
Junior subordinated debentures	22,681	380	6.67		22,681	404	7.09			—	(24)	(0.42)

Total interest-bearing liabilities	5,698,258	48,903	3.41		5,949,737	55,324	3.70			(251,479)	(6,421)	(0.29)
Noninterest-bearing demand deposits	668,138				673,113					(4,975)
Other liabilities	144,344				146,045					(1,701)
Shareholders' equity	501,099				485,654					15,445
Total liabilities and shareholders' equity	$7,011,839				$7,254,549					($242,710)
Net interest income (FTE)		$33,175				$32,496					$679
Interest rate spread			1.42	%			1.29	%				0.13	%
Net interest margin			1.95	%			1.85	%				0.10	%


For the Three Months Ended	Dec 31, 2024	Sep 30, 2024	Change
Commercial loans	$234	$234	$—
Nontaxable debt securities	1	—	1

Total	$235	$234	$1



For the Twelve Months Ended	Dec 31, 2024	Dec 31, 2023	Change
Commercial loans	$916	$946	($30)
Nontaxable debt securities	1	—	1

Total	$917	$946	($29)


Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures
(Unaudited; Dollars in thousands, except per share amounts)

	For the Three Months Ended										For the Twelve Months Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
Noninterest (loss) income, as reported - GAAP	($77,892)		$16,272		$16,660		$17,163		$13,306		($27,797)		$56,140
Less adjustments:
Realized losses on securities, net	(31,047)		—		—		—		—		(31,047)		—
Losses on sale of portfolio loans, net	(62,888)		—		—		—		—		(62,888)		—
Net gain on sale of bank-owned operations facility	—		—		988		—		—		988		—
Litigation settlement income	—		—		—		2,100		—		2,100		—
Total adjustments, pre-tax	(93,935)		—		988		2,100		—		(90,847)		—
Adjusted noninterest income - Non-GAAP	$16,043		$16,272		$15,672		$15,063		$13,306		$63,050		$56,140

(Loss) income before income taxes	($80,248)		$13,830		$13,835		$13,765		$12,173		($38,818)		$56,481
Less: adjustments, pre-tax	(93,935)		—		988		2,100		—		(90,847)		—
Adjusted income before income taxes - Non-GAAP	$13,687		$13,830		$12,847		$11,665		$12,173		$52,029		$56,481

Income tax (benefit) expense, as reported - GAAP	($19,457)		$2,849		$3,020		$2,829		($774)		($10,759)		$8,305
Less: tax on adjustments	(22,699)		—		249		530		—		(21,920)		—
Less: state legislative tax change (tax only adjustment)	—		—		—		—		(3,253)		—		(3,253)
Total adjustments, tax	(22,699)		—		249		530		(3,253)		(21,920)		(3,253)
Adjusted income tax expense - Non-GAAP	$3,242		$2,849		$2,771		$2,299		$2,479		$11,161		$11,558

Effective tax rate - GAAP	24.2	%	20.6	%	21.8	%	20.6	%	(6.4	%)	27.7	%	14.7	%
Less: impact of adjustments	(0.5)		—		(0.2)		(0.9)		26.8		(6.2)		5.8
Adjusted effective tax rate - Non-GAAP	23.7	%	20.6	%	21.6	%	19.7	%	20.4	%	21.5	%	20.5	%

Net (loss) income, as reported - GAAP	($60,791)		$10,981		$10,815		$10,936		$12,947		($28,059)		$48,176
Less: adjustments, after-tax	(71,236)		—		739		1,570		3,253		(68,927)		3,253
Adjusted net income - Non-GAAP	$10,445		$10,981		$10,076		$9,366		$9,694		$40,868		$44,923

Net (loss) income available to common shareholders, as reported - GAAP	($60,776)		$10,973		$10,807		$10,924		$12,931		($28,038)		$48,091
Less: adjustments, after-tax	(71,221)		—		738		1,568		3,248		(68,907)		3,249
Adjusted net income available to common shareholders - Non-GAAP	$10,445		$10,973		$10,069		$9,356		$9,683		$40,869		$44,842

Diluted (loss) earnings per common share, as reported - GAAP	($3.46)		$0.64		$0.63		$0.64		$0.76		($1.63)		$2.82
Less: impact of adjustments	4.05		—		(0.04)		(0.09)		(0.19)		4.00		(0.19)
Adjusted diluted earnings per common share - Non-GAAP	$0.59		$0.64		$0.59		$0.55		$0.57		$2.37		$2.63

Efficiency ratio, as reported - GAAP	(76.3	%)	71.1	%	70.3	%	70.4	%	70.9	%	136.2	%	69.1	%
Less: impact of adjustments	(146.3)		—		(1.5)		(3.1)		—		64.6		—
Adjusted efficiency ratio - Non-GAAP	70.0	%	71.1	%	71.8	%	73.5	%	70.9	%	71.6	%	69.1	%