Loans

3 Months Ended

Mar. 31, 2026

Receivables [Abstract]

Loans

Loans

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

(Dollars in thousands)	March 31, 2026	December 31, 2025
Commercial:
Commercial real estate (1)	$2,084,804	$2,183,985
Commercial & industrial (2)	568,177	564,082
Total commercial	2,652,981	2,748,067
Residential Real Estate:
Residential real estate (3)	2,029,092	2,050,399
Consumer:
Home equity	316,353	318,862
Other (4)	16,459	17,060
Total consumer	332,812	335,922
Total loans (5)	$5,014,885	$5,134,388

(1)CRE consists of commercial mortgages primarily secured by non-owner occupied income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings.

(2)C&I consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by owner occupied real estate.

(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. 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. See Note 9 for additional disclosure regarding borrowings.

Concentrations of Credit Risk

A significant portion of our loan portfolio is concentrated among borrowers in southern New England, and a substantial portion of the portfolio is collateralized by real estate in this area. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy, as well as the health of the real estate economic sector in the Corporation’s market area.

Past Due Loans

Past due status is based on the contractual payment terms of the loan. The following tables present an aging analysis of past due loans, segregated by class of loans:

(Dollars in thousands)		Days Past Due
March 31, 2026	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$2,078,230	$6,574	$—	$—	$6,574	$2,084,804
Commercial & industrial	567,707	344	—	126	470	568,177
Total commercial	2,645,937	6,918	—	126	7,044	2,652,981
Residential Real Estate:
Residential real estate	2,022,465	3,018	1,185	2,424	6,627	2,029,092
Consumer:
Home equity	313,607	854	1,545	347	2,746	316,353
Other	16,428	28	—	3	31	16,459
Total consumer	330,035	882	1,545	350	2,777	332,812
Total loans	$4,998,437	$10,818	$2,730	$2,900	$16,448	$5,014,885

(Dollars in thousands)		Days Past Due
December 31, 2025	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$2,183,337	$648	$—	$—	$648	$2,183,985
Commercial & industrial	564,075	7	—	—	7	564,082
Total commercial	2,747,412	655	—	—	655	2,748,067
Residential Real Estate:
Residential real estate	2,041,304	3,533	2,560	3,002	9,095	2,050,399
Consumer:
Home equity	317,255	1,095	166	346	1,607	318,862
Other	17,034	26	—	—	26	17,060
Total consumer	334,289	1,121	166	346	1,633	335,922
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.

Nonaccrual Loans

Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest, or sooner if considered appropriate by management. Well-secured loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. When loans are placed on nonaccrual status, interest previously accrued but not collected is reversed against current period income.  Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate collectability of the loan. Loans are removed from nonaccrual status when they have been current as to principal and interest (generally for six months), the borrower has demonstrated an ability to comply with repayment terms, and when, in management’s opinion, the loans are considered to be fully collectible.

The following table is a summary of nonaccrual loans, segregated by class of loans:

(Dollars in thousands)	March 31, 2026			December 31, 2025
	Nonaccrual Loans			Nonaccrual Loans
	With an ACL	Without an ACL	Total	With an ACL	Without an ACL	Total
Commercial:
Commercial real estate	$28,923	$—	$28,923	$—	$—	$—
Commercial & industrial	126	—	126	—	—	—
Total commercial	29,049	—	29,049	—	—	—
Residential Real Estate:
Residential real estate	8,633	998	9,631	9,830	1,269	11,099
Consumer:
Home equity	1,757	—	1,757	1,824	—	1,824
Other	3	—	3	—	—	—
Total consumer	1,760	—	1,760	1,824	—	1,824
Total nonaccrual loans	$39,442	$998	$40,440	$11,654	$1,269	$12,923
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.

The following table presents interest income recognized on nonaccrual loans:

(Dollars in thousands)
Three months ended March 31,	2026	2025
Commercial:
Commercial real estate	$588	$—
Commercial & industrial	—	2
Total commercial	588	2
Residential Real Estate:
Residential real estate	152	153
Consumer:
Home equity	22	37
Other	—	—
Total consumer	22	37
Total	$762	$192

Troubled Loan Modifications

A loan that has been modified is considered a TLM when the modification is made to a borrower experiencing financial difficulty and the modification has a direct impact to the contractual cash flows. If both of the aforementioned criteria are met, then the modification is considered a TLM and subject to the enhanced disclosure requirements.

In the course of resolving problem loans, the Corporation may choose to modify the contractual terms of loans to borrowers who are experiencing financial difficulty. Such modifications to borrowers experiencing financial difficulty may include modified contractual terms that have a direct impact to contractual cash flows, including principal forgiveness, interest rate reductions, maturity extensions, other-than-insignificant payment delays, or any combination thereof. Debt could be

bifurcated with separate terms for each tranche of the TLM. Executing a TLM in lieu of aggressively enforcing the collection of the loan may benefit the Corporation by increasing the ultimate probability of collection.

Nonaccrual loans that become TLMs generally remain on nonaccrual status for six months, subsequent to being modified, before management considers their return to accrual status. If a TLM is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status.

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:

(Dollars in thousands)
Three months ended March 31, 2025	Other-than-Insignificant Payment Delay	Total	% of Loan Class (1)
Residential Real Estate:
Residential real estate	$1,431	$1,431	—	%
Total	$1,431	$1,431	—	%

(1)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
Other-than-Insignificant Payment Delay:
Residential real estate	Provided payment delay for a weighted average period of 6 months

Management closely monitors the performance of TLMs to understand the effectiveness of the modifications. As of the dates indicated, the following tables present an aging analysis of TLMs that have been modified in the past 12 months:

(Dollars in thousands)		Days Past Due
March 31, 2026	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$5,605	$—	$—	$—	$—	$5,605
Commercial & industrial	—	—	—	—	—	—
Total commercial	5,605	—	—	—	—	5,605
Residential Real Estate:
Residential real estate	633	—	—	—	—	633
Total loans	$6,238	$—	$—	$—	$—	$6,238

(Dollars in thousands)		Days Past Due
March 31, 2025	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$7,605	$—	$—	$—	$—	$7,605
Commercial & industrial	5,000	—	—	—	—	5,000
Total commercial	12,605	—	—	—	—	12,605
Residential Real Estate:
Residential real estate	1,686	—	—	—	—	1,686
Total loans	$14,291	$—	$—	$—	$—	$14,291

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.

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. 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.

The following table presents the carrying value of collateral dependent individually analyzed loans:

(Dollars in thousands)	March 31, 2026		December 31, 2025
	Carrying Value	Related Allowance	Carrying Value	Related Allowance
Commercial:
Commercial real estate (1)	$12,179	$1,500	$5,605	$—
Commercial & industrial (2)	—	—	—	—
Total commercial	12,179	1,500	5,605	—
Residential Real Estate:
Residential real estate (3)	1,631	—	1,903	—
Consumer:
Home equity (3)	—	—	—	—
Other	3	3	—	—
Total consumer	3	3	—	—
Total	$13,813	$1,503	$7,508	$—

(1)    Secured by income-producing property.

(2)    Secured by business assets.

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

Credit Quality Indicators

Commercial

The Corporation utilizes an internal rating system to assign a risk to each of its commercial loans. Loans are rated on a scale of 1 to 10. This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10. Additionally, ratings 7 through 10 are considered criticized, as defined by regulatory agencies. The loan risk rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, the adequacy of collateral, the adequacy of guarantees, and other credit quality characteristics. The Corporation takes the risk rating into consideration along with other credit attributes in the establishment of an appropriate ACL on loans. See Note 5 for additional information.

A description of the commercial loan categories is as follows:

Pass - Loans with acceptable credit quality, defined as ranging from superior or very strong to a status of lesser stature. Superior or very strong credit quality is characterized by a high degree of cash collateralization or strong balance sheet liquidity. Lesser stature loans have an acceptable level of credit quality, but may exhibit some weakness in various credit metrics such as collateral adequacy, cash flow, performance or may be in an industry or of a loan type known to have a higher degree of risk. These weaknesses may be mitigated by secondary sources of repayment, including SBA guarantees.

Special Mention - Loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s position as creditor at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Examples of these conditions include but are not limited to outdated or poor quality financial data, strains on liquidity and leverage, losses or negative trends in operating results, marginal cash flow, weaknesses in occupancy rates or trends in the case of commercial real estate, and frequent delinquencies.

Classified - Loans identified as “substandard,” “doubtful” or “loss” based on criteria consistent with guidelines provided by banking regulators. A “substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. The loans are closely watched and are either already on nonaccrual status or may be placed on nonaccrual status when management determines there is uncertainty of collectability. 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. “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.

The Corporation’s procedures call for loan risk ratings and classifications to be revised whenever information becomes available that indicates a change is warranted. On a quarterly basis, management reviews a watched asset list, which generally consists of commercial loans that are risk-rated 6 or worse, highly leveraged transaction loans, high-volatility commercial real estate, and other selected loans. Management’s review focuses on the current status of the loans, the appropriateness of risk ratings and strategies to improve the credit.

An annual credit review program is conducted by a third party to provide an independent evaluation of the creditworthiness of the commercial loan portfolio, the quality of the underwriting and credit risk management practices, and the appropriateness of the risk rating classifications. This review is supplemented with selected targeted internal reviews of the commercial loan portfolio.

Residential and Consumer

Management monitors the relatively homogeneous residential real estate and consumer loan portfolios on an ongoing basis using delinquency information by loan type.

In addition, other techniques are utilized to monitor indicators of credit deterioration in the residential real estate loans and home equity consumer loans. Among these techniques is the periodic tracking of loans with an updated Fair Isaac Corporation (commonly known as “FICO”) score and an updated estimated LTV ratio. 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

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. In the tables below, renewals subject to full credit evaluation before being granted are reported as originations in the period renewed. Loans with extensions of maturity dates of more than three months, including TLMs, are reported as originations in the period extended. 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:

(Dollars in thousands)	Term Loans Amortized Cost by Origination Year
	2026	2025	2024	2023	2022	Prior	Revolving Loans Amortized Cost	Revolving Loans Converted to Term Loans	Total
Commercial:
CRE:
Pass	$58,895	$369,781	$98,630	$282,310	$475,205	$701,930	$9,303	$929	$1,996,983
Special mention	—	27,521	—	11,977	9,502	3,773	—	—	52,773
Classified	—	6,574	—	—	22,349	6,125	—	—	35,048
Total CRE	58,895	403,876	98,630	294,287	507,056	711,828	9,303	929	2,084,804
Gross charge-offs	—	—	—	—	—	—	—	—	—
C&I:
Pass	9,120	91,604	38,889	53,572	127,057	174,893	70,653	317	566,105
Special mention	—	—	784	—	335	126	701	—	1,946
Classified	—	—	—	—	—	126	—	—	126
Total C&I	9,120	91,604	39,673	53,572	127,392	175,145	71,354	317	568,177
Gross charge-offs	17	—	—	—	—	—	—	—	17
Residential Real Estate:
Current (1)	30,985	161,148	46,821	317,827	676,119	790,488	—	—	2,023,388
Past due	—	—	—	—	1,023	5,604	—	—	6,627
Total residential real estate	30,985	161,148	46,821	317,827	677,142	796,092	—	—	2,030,015
Gross charge-offs	—	—	—	—	—	—	—	—	—
Consumer:
Home equity:
Current	2,885	16,260	9,461	13,964	9,646	10,877	236,681	13,833	313,607
Past due	—	—	73	212	49	392	458	1,562	2,746
Total home equity	2,885	16,260	9,534	14,176	9,695	11,269	237,139	15,395	316,353
Gross charge-offs	—	—	—	—	—	—	—	—	—
Other:
Current	802	4,058	2,456	3,001	1,738	4,110	263	—	16,428
Past due	24	5	—	—	—	1	1	—	31
Total other	826	4,063	2,456	3,001	1,738	4,111	264	—	16,459
Gross charge-offs	66	—	—	1	—	—	—	—	67
Loans, amortized cost	$102,711	$676,951	$197,114	$682,863	$1,323,023	$1,698,445	$318,060	$16,641	$5,015,808
Gross charge-offs	$83	$—	$—	$1	$—	$—	$—	$—	$84

(1)Excludes a $923 thousand negative basis adjustment associated with fair value hedges. See Note 6 for additional disclosure.

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 December 31, 2025:

(Dollars in thousands)	Term Loans Amortized Cost by Origination Year
	2025	2024	2023	2022	2021	Prior	Revolving Loans Amortized Cost	Revolving Loans Converted to Term Loans	Total
Commercial:
CRE:
Pass	$432,404	$102,312	$338,922	$490,011	$302,383	$438,112	$9,426	$942	$2,114,512
Special mention	33,416	—	—	27,743	—	2,157	—	—	63,316
Classified	—	—	—	—	—	6,157	—	—	6,157
Total CRE	465,820	102,312	338,922	517,754	302,383	446,426	9,426	942	2,183,985
Gross charge-offs	—	—	—	—	—	5,715	—	—	5,715
C&I:
Pass	87,523	39,556	54,047	125,846	20,057	159,707	58,146	315	545,197
Special mention	3,569	788	—	3,442	1,095	3,865	6,000	—	18,759
Classified	—	—	—	—	126	—	—	—	126
Total C&I	91,092	40,344	54,047	129,288	21,278	163,572	64,146	315	564,082
Gross charge-offs	49	—	8,345	—	—	299	—	—	8,693
Residential Real Estate:
Current (1)	161,291	50,709	332,253	690,150	345,038	462,198	—	—	2,041,639
Past due	—	—	—	—	543	8,552	—	—	9,095
Total residential real estate	161,291	50,709	332,253	690,150	345,581	470,750	—	—	2,050,734
Gross charge-offs	—	—	—	—	—	—	—	—	—
Consumer:
Home equity:
Current	16,839	10,508	14,662	9,969	5,190	6,086	238,734	15,267	317,255
Past due	—	34	58	—	137	223	814	341	1,607
Total home equity	16,839	10,542	14,720	9,969	5,327	6,309	239,548	15,608	318,862
Gross charge-offs	—	—	—	—	—	—	—	—	—
Other:
Current	4,295	2,588	3,366	1,790	1,616	3,123	256	—	17,034
Past due	26	—	—	—	—	—	—	—	26
Total other	4,321	2,588	3,366	1,790	1,616	3,123	256	—	17,060
Gross charge-offs	323	—	1	—	—	3	—	—	327
Loans, amortized cost	$739,363	$206,495	$743,308	$1,348,951	$676,185	$1,090,180	$313,376	$16,865	$5,134,723
Gross charge-offs	$372	$—	$8,346	$—	$—	$6,017	$—	$—	$14,735

(1)Excludes a $335 thousand negative basis adjustment associated with fair value hedges. See Note 6 for additional disclosure.