WASHINGTON TRUST BANCORP INC

FOR IMMEDIATE RELEASE

Washington Trust Reports Fourth Quarter and Full-Year 2024 Results

WESTERLY, R.I., January 29, 2025 (PR NEWSWIRE)…Washington Trust Bancorp, Inc. (the “Corporation”) (Nasdaq: WASH), parent company of The Washington Trust Company (the “Bank”), today reported a fourth quarter 2024 net loss of $60.8 million, or a $3.46 loss per diluted share. Excluding the impact of the balance sheet repositioning sale transactions described below, adjusted net income (non-GAAP) for the fourth quarter totaled $10.4 million, or $0.59 per diluted share, compared to net income of $11.0 million, or $0.64 per diluted share, for the third quarter of 2024.

As previously announced, on December 16, 2024, the Corporation completed an underwritten public offering of 2,198,528 shares of its common stock at a public offering price of $34.00 per share. The net proceeds from the offering were approximately $70.5 million.

On December 20, 2024, the Corporation announced the execution of balance sheet repositioning transactions to support continued organic growth and capital generation. The Bank sold available for sale debt securities with an amortized cost balance of $409 million (fair value of $378 million) and a weighted average yield of 2.65% and reinvested $378 million into purchases of available for sale debt securities with a weighted average yield of 5.30%. The sale of debt securities resulted in a net pre-tax realized loss of $31.0 million (after-tax of $23.5 million) that was recognized in the fourth quarter of 2024.

Pursuant to the terms of a sales agreement effective December 30, 2024, the Bank committed to sell residential mortgage loans with an amortized cost balance of $345 million and a weighted average rate of approximately 3.02%. These loans were reclassified to held for sale and written down to a fair value of $282 million, resulting in a net pre-tax loss of $62.9 million (after-tax of $47.7 million) that was recognized in the fourth quarter of 2024. The sale of these loans was completed on January 24, 2025. The net proceeds received from the equity offering were used, and the proceeds from the loan sale will be used, to pay down wholesale funding balances.

“Washington Trust's 2024 results reflect the strategic actions we took in December to reposition our balance sheet,” stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. “Though the sales resulted in a loss recognized in the fourth quarter, the equity offering and repositioning will favorably impact future revenues and provide additional capacity for growth and investment. This strategy has further strengthened our financial foundation, allowing us to focus on providing enhanced value for our shareholders, as well as the customers and communities we serve.”

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