Business Segments

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Business Segments

Business Segments

The Corporation manages its operations through two reportable business segments, consisting of Banking and Wealth Management Services. The Corporation’s reportable business segments are determined by the Senior Executive Vice President, Chief Financial Officer and Treasurer, the designated CODM.

An allocation methodology is utilized to allocate income and expenses to the business segments. Direct activities are assigned to the appropriate business segment to which the activity relates. Indirect activities, such as corporate, technology and other support functions, are allocated to business segments primarily based upon full-time equivalent employee computations.

The Banking segment includes commercial, residential, and consumer lending activities; mortgage banking activities; deposit generation; cash management services; other banking activities, including customer support and the operation of ATMs, telephone banking, internet banking, and mobile banking services; as well as investment portfolio and wholesale funding activities.

Wealth management services and operations are provided through the Bank and its registered investment adviser subsidiary. The Wealth Management Services segment provides investment management; holistic financial planning services; personal trust and estate services, including services as trustee, personal representative, and custodian; settlement of decedents’ estates; and institutional trust services, including custody and fiduciary services.

The CODM evaluates the financial performance of each business segment, which is measured based upon the business segment’s net income. Components of net income for the business segments that are reviewed by the CODM include net interest income, provision for credit losses, noninterest income, noninterest expense, and income tax expense. The CODM, in conjunction with management committees (such as the ALCO) and certain members of executive management, evaluates financial performance to make decisions related to the products and services that are offered, pricing, and the allocation of resources, for each business segment.

The 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 September 30,	2025	2024	2025	2024	2025	2024
Total interest income and dividend income	$80,945	$87,586	$—	$—	$80,945	$87,586
Total interest expense	42,112	55,324	—	—	42,112	55,324
Net interest income	38,833	32,262	—	—	38,833	32,262
Provision for credit losses	6,800	200	—	—	6,800	200
Net interest income after provision for credit losses	32,033	32,062	—	—	32,033	32,062
Noninterest income	7,115	6,177	10,521	10,095	17,636	16,272
Noninterest expenses:
Salaries and employee benefits	17,246	16,467	5,428	4,883	22,674	21,350
Outsourced services	3,540	3,267	580	918	4,120	4,185
Net occupancy	2,512	2,137	179	262	2,691	2,399
Equipment	854	854	63	70	917	924
Legal, audit and professional fees	603	632	116	204	719	836
FDIC deposit insurance costs	1,055	1,402	—	—	1,055	1,402
Advertising and promotion	637	743	126	114	763	857
Amortization of intangibles	—	—	200	206	200	206
Other expenses	2,237	1,899	350	446	2,587	2,345
Total noninterest expenses	28,684	27,401	7,042	7,103	35,726	34,504
Income before income taxes	10,464	10,838	3,479	2,992	13,943	13,830
Income tax expense	2,254	2,193	843	656	3,097	2,849
Net income	$8,210	$8,645	$2,636	$2,336	$10,846	$10,981
Supplemental Information:
Total assets at period end	$6,655,634	$7,082,826	$62,287	$58,745	$6,717,921	$7,141,571
Expenditures for long-lived assets	423	1,271	9	2	432	1,273
Depreciation expense (1)	772	878	80	100	852	978

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

(Dollars in thousands)	Banking		Wealth Management Services		Consolidated Total
Nine months ended September 30,	2025	2024	2025	2024	2025	2024
Total interest income and dividend income	$239,254	$258,839	$—	$—	$239,254	$258,839
Total interest expense	126,814	163,327	—	—	126,814	163,327
Net interest income	112,440	95,512	—	—	112,440	95,512
Provision for credit losses	8,600	1,400	—	—	8,600	1,400
Net interest income after provision for credit losses	103,840	94,112	—	—	103,840	94,112
Noninterest income	26,470	18,400	30,887	31,695	57,357	50,095
Noninterest expenses:
Salaries and employee benefits	51,659	49,479	16,462	14,906	68,121	64,385
Outsourced services	10,179	9,230	2,691	2,831	12,870	12,061
Net occupancy	7,376	6,573	718	784	8,094	7,357
Equipment	2,524	2,632	214	270	2,738	2,902
Legal, audit and professional fees	1,655	1,855	540	428	2,195	2,283
FDIC deposit insurance costs	3,552	4,247	—	—	3,552	4,247
Advertising and promotion	1,586	1,773	304	293	1,890	2,066
Amortization of intangibles	—	—	607	622	607	622
Other expenses	11,211	5,564	3,174	1,290	14,385	6,854
Total noninterest expenses	89,742	81,353	24,710	21,424	114,452	102,777
Income before income taxes	40,568	31,159	6,177	10,271	46,745	41,430
Income tax expense	8,884	6,441	1,591	2,257	10,475	8,698
Net income	$31,684	$24,718	$4,586	$8,014	$36,270	$32,732
Total assets at period end	$6,655,634	$7,082,826	$62,287	$58,745	$6,717,921	$7,141,571
Expenditures for long-lived assets	811	3,427	22	92	833	3,519
Depreciation expense (1)	2,370	2,663	253	312	2,623	2,975

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

For the nine months ended September 30, 2025, noninterest income for the Banking segment included a $7.0 million net gain recognized in the first quarter associated with sales-leaseback transactions that were completed for five branch locations. See additional disclosure regarding the sale-leaseback transactions in Note 6.

Also, for the nine months ended September 30, 2025, total other expenses included a $6.4 million pension plan settlement charge recognized in the first quarter, of which $4.9 million was included in the Banking segment and $1.5 million was included in the Wealth Management Services segment. See additional disclosure regarding the pension plan settlement charge in Note 14.

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