Business Segments

12 Months Ended

Dec. 31, 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 Chairman and Chief Executive Officer, and the Senior Executive Vice President, Chief Financial Officer and Treasurer, the designated CODMs.

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

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

(Dollars in thousands)
Year ended December 31, 2025	Banking	Wealth Management Services	Consolidated Total
Total interest income and dividend income	$318,091	$—	$318,091
Total interest expense	164,903	—	164,903
Net interest income	153,188	—	153,188
Provision for credit losses	9,200	—	9,200
Net interest income after provision for credit losses	143,988	—	143,988
Noninterest income	33,887	41,973	75,860
Noninterest expenses:
Salaries and employee benefits	69,485	22,283	91,768
Outsourced services	13,552	3,385	16,937
Net occupancy	9,793	943	10,736
Equipment	3,303	287	3,590
Legal, audit and professional fees	2,199	663	2,862
FDIC deposit insurance costs	4,580	—	4,580
Advertising and promotion	2,439	480	2,919
Amortization of intangibles	—	762	762
Other expenses	14,563	3,718	18,281
Total noninterest expense	119,914	32,521	152,435
Income before income taxes	57,961	9,452	67,413
Income tax expense	12,772	2,397	15,169
Net income	$45,189	$7,055	$52,244
Supplemental Information:
Total assets at period end	$6,558,488	$63,206	$6,621,694
Expenditures for long-lived assets	1,956	49	2,005
Depreciation expense (1)	3,125	330	3,455

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

Noninterest income in 2025 for the Banking segment included a $7.0 million net gain associated with sale-leaseback transactions that were completed for five branch locations. See additional disclosure regarding the sale-leaseback transactions in Note 7.

Also, in 2025, total other expenses included a $6.4 million pension plan settlement charge, 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 16.

(Dollars in thousands)
Year ended December 31, 2024	Banking	Wealth Management Services	Consolidated Total
Total interest and dividend income	$340,678	$—	$340,678
Total interest expense	212,230	—	212,230
Net interest income	128,448	—	128,448
Provision for credit losses	2,400	—	2,400
Net interest income after provision for credit losses	126,048	—	126,048
Noninterest (loss) income	(69,609)	41,812	(27,797)
Noninterest expenses:
Salaries and employee benefits	66,482	19,778	86,260
Outsourced services	12,340	3,918	16,258
Net occupancy	8,726	1,059	9,785
Equipment	3,486	352	3,838
Legal, audit and professional fees	2,473	655	3,128
FDIC deposit insurance costs	5,513	—	5,513
Advertising and promotion	2,252	374	2,626
Amortization of intangibles	—	826	826
Other expenses	7,517	1,318	8,835
Total noninterest expense	108,789	28,280	137,069
(Loss) income before income taxes	(52,350)	13,532	(38,818)
Income tax (benefit) expense	(13,530)	2,771	(10,759)
Net (loss) income	($38,820)	$10,761	($28,059)
Supplemental Information:
Total assets at period end	$6,870,612	$60,035	$6,930,647
Expenditures for long-lived assets	3,862	139	4,001
Depreciation expense (1)	3,530	404	3,934

(1)Included in net occupancy and equipment expenses in the statement of operations above.

Noninterest income in 2024 for the Wealth Management Services segment included income of $2.1 million associated with a litigation settlement.

Additionally, the sale of securities and reclassification of residential mortgage loans to held for sale in connection with the balance sheet repositioning transactions that were executed in December 2024 impacted the results for the Banking segment. See additional discussion of the impact of these transactions in Notes 3 and 10.

(Dollars in thousands)
Year ended December 31, 2023	Banking	Wealth Management Services	Consolidated Total
Total interest and dividend income	$308,622	$37	$308,659
Total interest expense	171,561	—	171,561
Net interest income	137,061	37	137,098
Provision for credit losses	3,200	—	3,200
Net interest income after provision for credit losses	133,861	37	133,898
Noninterest income	20,006	36,134	56,140
Noninterest expenses:
Salaries and employee benefits	62,013	20,445	82,458
Outsourced services	10,972	3,549	14,521
Net occupancy	8,313	1,323	9,636
Equipment	3,841	477	4,318
Legal, audit and professional fees	2,751	1,140	3,891
FDIC deposit insurance costs	4,667	—	4,667
Advertising and promotion	2,140	422	2,562
Amortization of intangibles	—	843	843
Other expenses	8,269	2,392	10,661
Total noninterest expense	102,966	30,591	133,557
Income before income taxes	50,901	5,580	56,481
Income tax expense	7,028	1,277	8,305
Net income	$43,873	$4,303	$48,176
Supplemental Information:
Total assets at period end	$7,146,096	$56,751	$7,202,847
Expenditures for long-lived assets	5,013	35	5,048
Depreciation expense (1)	3,460	545	4,005

(1)Included in net occupancy and equipment expenses in the statement of operations above.