WASHINGTON TRUST BANCORP INC

Previous wording

The following discussion should be read in conjunction with the Corporation’s Audited Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2024, and in conjunction with the condensed Unaudited Consolidated Financial Statements and notes thereto included in Item 1 of this report. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results for the full-year ended December 31, 2025 or any future period.

Current wording

The following discussion should be read in conjunction with the Corporation’s Audited Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2025, and in conjunction with the condensed Unaudited Consolidated Financial Statements and notes thereto included in Item 1 of this report. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results for the full-year ended December 31, 2026 or any future period.

Previous wording

•changes in general business and economic conditions (including the impact of tariffs, inflation and concerns about liquidity) on a national basis and in the local markets in which we operate;

Current wording

•changes in general business and economic conditions (including the impact of ongoing armed conflicts, tariffs, inflation, current or future U.S. government shutdowns, and concerns about liquidity) on a national basis and in the local markets in which we operate;

Previous wording

In addition to evaluating the Corporation’s results of operations in accordance with GAAP, management supplements this evaluation with an analysis of certain non-GAAP financial measures, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, adjusted net income available to common shareholders, adjusted diluted earnings per common share, adjusted return on average assets and adjusted return on average equity.

Current wording

In addition to evaluating the Corporation’s results of operations in accordance with GAAP, management supplements this evaluation with an analysis of certain non-GAAP financial measures, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets, and adjusted return on average equity.

Previous wording

The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, and adjusted net income available to common shareholders:

Current wording

The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, and adjusted net income:

Previous wording

(1)Net income available to common shareholders divided by weighted average diluted common and potential shares outstanding.

Current wording

(1)Net income divided by weighted average diluted common and potential shares outstanding.

Previous wording

(2)Net income available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding.

Current wording

(2)Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding.

Previous wording

(4)Net income available to common shareholders divided by total average equity.

Current wording

(4)Net income divided by total average equity.

Previous wording

(5)Net income available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.

Current wording

(5)Net income, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity.

Previous wording

Our largest source of operating income is net interest income, which is the difference between interest earned on loans and securities and interest paid on deposits and borrowings. In addition, we generate noninterest income from a number of sources, including wealth management services, mortgage banking activities, and deposit services. Our principal noninterest

Current wording

Our largest source of operating income is net interest income, which is the difference between interest earned on loans and securities and interest paid on deposits and borrowings. In addition, we generate noninterest income from a number of sources, including wealth management services, mortgage banking activities, and deposit services. Our principal noninterest expenses include salaries and employee benefit costs, outsourced services (including software-as-a-service) provided by third-party vendors, occupancy and facility-related costs, and other administrative expenses.

Previous wording

Net income totaled $10.8 million and $36.3 million, respectively, for the three and nine months ended September 30, 2025, compared to $11.0 million and $32.7 million, respectively, reported for the same periods in 2024. These results included the following infrequent transactions:

Current wording

Net income totaled $12.6 million for the three months ended March 31, 2026, compared to $12.2 million reported for the same period in 2025. These results included the following infrequent transactions:

Previous wording

•In the first quarter of 2025, sales-leaseback transactions were completed for five branch locations and a pre-tax net gain on the sale of the bank-owned properties totaling $7.0 million was recognized within noninterest income.

Current wording

•In the first quarter of 2025, sale-leaseback transactions were completed for five branch locations and a pre-tax net gain on the sale of the bank-owned properties totaling $7.0 million was recognized within noninterest income.

Previous wording

Excluding these items, adjusted net income (non-GAAP) for the three and nine months ended September 30, 2025 was $10.8 million and $35.9 million, respectively, compared to $11.0 million and $30.4 million, respectively, for the same periods in 2024. These results largely reflected increases in net interest income, but were also negatively impacted by an elevated provision for credit losses in the third quarter of 2025.

Current wording

Excluding these items, adjusted net income (non-GAAP) for the three months ended March 31, 2026 was $12.6 million, compared to $11.8 million for the same period in 2025, up by $838 thousand, or 7%. These results reflected higher net interest income, as well as growth in wealth management and mortgage banking revenues, partially offset by an elevated provision for credit losses and higher salaries and benefits costs.

Previous wording

The following tables present daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.

Current wording

The following table presents daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt income is converted to an FTE basis using the statutory federal income tax rate. Unrealized gains (losses) on available for sale securities, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges are excluded from the average balance and yield calculations. Nonaccrual loans are included in amounts presented for loans. Interest income attributable to nonaccrual loans is included in accordance with accounting policy as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Previous wording

Net interest income, the primary source of our operating income, totaled $38.8 million and $112.4 million, respectively, for the three and nine months ended September 30, 2025, compared to $32.3 million and $95.5 million, respectively, for the same periods in 2024.

Current wording

Net interest income, the primary source of our operating income, totaled $40.5 million for the three months ended March 31, 2026, compared to $36.4 million, for the same period in 2025.

Previous wording

The improvement in net interest income, FTE net interest income and NIM discussed below largely reflected benefits from the balance sheet repositioning transactions previously announced in December 2024, which included the sale of lower-yielding debt securities and residential real estate loans, reinvestment into higher-yielding debt securities, and pay-down of higher-cost FHLB advances and wholesale brokered time deposits.

Current wording

The improvement in net interest income, FTE net interest income and NIM discussed below largely reflected continued benefits from the December 2024 balance sheet repositioning transactions.

Previous wording

FTE net interest income for the three and nine months ended September 30, 2025 amounted to $39.1 million and $113.1 million, respectively, up by $6.6 million and $16.9 million, respectively, from the same periods in 2024. For the three and nine months ended September 30, 2025, decreases in average interest-bearing liability balances net of decreases in average interest-earning assets increased net income by $2.3 million and $6.5 million, respectively. Decreases in funding costs outpaced decreases in asset yields, increasing net interest income by $4.3 million and $10.3 million, respectively, for the three and nine months ended September 30, 2025. NIM was 2.40% and 2.35%, respectively, for the three and nine months ended September 30, 2025, up from 1.85% and 1.84%, respectively, for the same periods in 2024.

Current wording

FTE net interest income for the three months ended March 31, 2026 amounted to $40.7 million, up by $4.1 million from the same period in 2025. For the three months ended March 31, 2026, decreases in average interest-bearing liability balances net of decreases in average interest-earning assets increased net interest income by $793 thousand. Decreases in funding costs outpaced decreases in asset yields, increasing net interest income by $3.3 million for the three months ended March 31, 2026.

Previous wording

Total average securities for the three and nine months ended September 30, 2025 decreased by $34.0 million and $66.0 million, respectively, from the average balances for the same periods a year earlier primarily due to routine pay-downs. The FTE rate of return on the securities portfolio for the three and nine months ended September 30, 2025 was 3.46% and 3.45%, respectively, up from 2.44% and 2.47%, respectively, for the same periods in 2024.

Current wording

Total average securities for the three months ended March 31, 2026 decreased by $20.1 million from the same period a year earlier primarily due to routine pay-downs. The FTE rate of return on the securities portfolio for the three months ended March 31, 2026 was 3.48%, up by 5 basis points from the same period in 2025.

Previous wording

Total average loan balances for the three and nine months ended September 30, 2025 decreased by $414.2 million and $505.6 million, respectively, from the average loan balances for the comparable 2024 periods, largely reflecting a decrease in average balances of residential real estate loans. The yield on total loans for both the three and nine months ended September 30, 2025 was 5.30%, compared to 5.44% and 5.41%, respectively, for the corresponding periods in 2024.

Current wording

Total average loan balances for the three months ended March 31, 2026 decreased by $21.8 million from the comparable 2025 period, largely reflecting a decrease in the residential real estate loan portfolio. The yield on total loans for the three months ended March 31, 2026 was 5.14%, down by 17 basis points from the same period in 2025.

Previous wording

FHLB advances and brokered time deposits are utilized as wholesale funding sources. Wholesale funding balances decreased in 2025, largely reflecting benefits from the balance sheet repositioning transactions mentioned above, as well as in-market deposit growth. Rates paid on wholesale funding have declined from the prior year reflecting lower market interest rates. The average balance of FHLB advances for the three and nine months ended September 30, 2025 decreased by $481.1 million and $408.4 million, respectively, compared to the average balances for the same periods in 2024. The average rate paid on such advances for the three and nine months ended September 30, 2025 was 4.44% and 4.52%, respectively, down from 4.95% for both of the same periods in 2024. Included in total average interest-bearing deposits were wholesale

Current wording

FHLB advances and brokered time deposits are utilized as wholesale funding sources. The average balance of FHLB advances for the three months ended March 31, 2026 decreased by $299.2 million from the comparable period in 2025. The average rate paid on such advances for the three months ended March 31, 2026 was 4.16%, down by 46 basis points from the same period in 2025. There were no wholesale brokered time deposits for the three months ended March 31, 2026, compared to $188.4 million for the three months ended March 31, 2025 that had an average rate of 5.05%. The decline in wholesale funding balances reflected the benefits from the balance sheet repositioning transactions mentioned above, as well as increases in the average balances of in-market deposits. Rates paid on wholesale funding have declined from the prior year reflecting lower market interest rates.

Previous wording

Average in-market interest-bearing deposits, which excludes wholesale brokered deposits, for the three and nine months ended September 30, 2025 increased by $412.6 million and $378.1 million, respectively, from the average balances for the same periods in 2024, reflecting increases in average balances across most deposit categories. The average rate paid on in-market interest-bearing deposits for both the three and nine months ended September 30, 2025 was 2.78%, down from 3.06% and 3.00%, respectively, for the same periods in 2024, largely reflecting lower market interest rates. The average balance of noninterest-bearing demand deposits for the three and nine months ended September 30, 2025 decreased by $24.8 million and $34.9 million, respectively, from the average balances for the same periods in 2024.

Current wording

Average in-market interest-bearing deposits, which excludes wholesale brokered deposits, for the three months ended March 31, 2026 increased by $279.1 million from the same period in 2025, largely reflecting increases in average balances of savings accounts and interest-bearing demand deposits. The average rate paid on in-market interest-bearing deposits for the three months ended March 31, 2026 was 2.42%, down by 35 basis points from the same period in 2025, largely reflecting

Previous wording

Total noninterest income amounted to $17.6 million and $57.4 million, respectively, for the three and nine months ended September 30, 2025, compared $16.3 million and $50.1 million, respectively, for the same periods in 2024. Total noninterest income was impacted by infrequent transactions, as described under the caption “Summary” above. Excluding the impact of these transactions, adjusted noninterest income (non-GAAP) was $17.6 million and $50.4 million, respectively, for the three and nine months ended September 30, 2025, up by $1.4 million and $3.4 million, respectively, from the same periods in 2024.

Current wording

Total noninterest income amounted to $17.3 million for the three months ended March 31, 2026, compared to $22.6 million for the same period in 2025. Total noninterest income in 2025 was impacted by the gain on sale-leaseback transactions as described under the caption “Summary” above. Excluding the impact of this infrequent transaction, adjusted noninterest income (non-GAAP) for the three months ended March 31, 2026 was up by $1.7 million, or 11%, from the same period in 2025.

Previous wording

Wealth management services represent our largest source of noninterest income. A substantial portion of wealth management revenues is dependent on the value of wealth management AUA and is closely tied to the performance of the financial markets. This portion of wealth management revenues is referred to as “asset-based” and includes trust and investment management fees. Wealth management revenues also include “transaction-based” revenues that are not primarily derived from the value of assets.

Current wording

Wealth management revenues represent our largest source of noninterest income. A substantial portion of wealth management revenues is dependent on the value of wealth management AUA and is closely tied to the performance of the financial markets. This portion of wealth management revenues is referred to as “asset-based” and includes trust and investment management fees. Wealth management revenues also include “transaction-based” revenues that are not primarily derived from the value of assets.

Previous wording

Wealth management revenues for the three and nine months ended September 30, 2025 increased by $384 thousand and $1.4 million, respectively, from the same periods in 2024, largely reflecting an increase in asset-based revenues. The increase in asset-based revenues primarily reflected net investment appreciation of AUA.

Current wording

Wealth management revenues for the three months ended March 31, 2026 increased by $756 thousand, or 8%, from the same period in 2025, largely reflecting an increase in asset-based revenues. The increase in asset-based revenues correlated with the change in average AUA balances. The average balance of AUA for the three months ended March 31, 2026 increased by 10% over the average balance for the same period in 2025, primarily reflecting net investment appreciation of AUA.

Previous wording

For the three and nine months ended September 30, 2025, mortgage banking revenues were up by $635 thousand and $706 thousand, respectively, compared to the same periods in 2024. Mortgage banking revenues are impacted by changes in

Current wording

For the three months ended March 31, 2026, mortgage banking revenues were up by $741 thousand, or 32%, compared to the same period in 2025, largely reflecting an increase in sales volume.

Previous wording

Total noninterest expense amounted to $35.7 million and $114.5 million, respectively, for the three and nine months ended September 30, 2025, compared to $34.5 million and $102.8 million, respectively, for the same periods in 2024. Total noninterest expense was impacted by the termination of the Corporation’s qualified pension plan, as described under the caption “Summary” above. Excluding the impact of this infrequent transaction, adjusted noninterest expense (non-GAAP) was $35.7 million and $108.0 million, respectively, for the three and nine months ended September 30, 2025, up by $1.2 million and $5.2 million, respectively, from the same periods in 2024.

Current wording

Total noninterest expense amounted to $37.8 million for the three months ended March 31, 2026, compared to $42.2 million for the same period in 2025. Total noninterest expense in 2025 was impacted by the settlement charge associated with termination of the Corporation’s qualified pension plan, as described under the caption “Summary” above. Excluding the impact of this infrequent transaction, adjusted noninterest expense (non-GAAP) for the three months ended March 31, 2026, was up by $2.0 million, or 6%, from the same period in 2025.

Previous wording

Salaries and employee benefits expense, the largest component of total noninterest expense, for the three and nine months ended September 30, 2025 increased by $1.3 million and $3.7 million, respectively, compared to the same periods in 2024. These increases largely reflected lower levels of performance-based compensation recognized in 2024.

Current wording

Salaries and employee benefits expense, the largest component of total noninterest expense, for the three months ended March 31, 2026 increased by $1.9 million, or 9%, compared to the same period in 2025. This primarily reflected merit increases and the addition of resources in our commercial banking and wealth management business lines, as well as volume-related increases in mortgage originator commission expense.

Previous wording

FDIC insurance costs for the three and nine months ended September 30, 2025 decreased by $347 thousand and $695 thousand, respectively, compared to the same periods in 2024, reflecting the impact of decreases in average assets from a year ago and a lower FDIC deposit assessment rate.

Current wording

FDIC insurance costs for the three months ended March 31, 2026 decreased by $327 thousand, or 26%, compared to the same period in 2025, reflecting a decrease in average assets from a year ago and a lower FDIC deposit assessment rate.

Previous wording

The effective income tax rates differed from the federal rate of 21%, primarily due to state income tax, partially offset by benefits from tax-exempt income, income from BOLI, and federal tax credits. The blended statutory rates include the federal income tax rate of 21% and a blended state income tax rate net of a federal tax benefit.

Current wording

The effective tax rates differed from the federal rate of 21%, primarily due to state income tax expense, which was partially offset by benefits from tax-exempt income, income from BOLI, and federal tax credits. The blended statutory rates include the federal income tax rate of 21% and a blended state income tax rate net of a federal tax benefit.

Previous wording

The Corporation’s net deferred tax assets are reported in other assets and amounted to $36.9 million at September 30, 2025, down from $63.0 million at December 31, 2024. This decrease included the realization of a deferred tax asset associated with loans that were reclassified to held for sale and written down to fair value in December 2024 and then sold in January 2025. Management believes deferred tax assets, net of the valuation allowance, are more-likely-than-not to be realized.

Current wording

The Corporation’s net deferred tax assets are reported in other assets and amounted to $36.6 million at March 31, 2026, down from $36.9 million at December 31, 2025. Management believes deferred tax assets, net of the valuation allowance, are more-likely-than-not to be realized.

Previous wording

The provision for credit losses for the three and nine months ended September 30, 2025 increased by $6.6 million and $7.2 million, respectively, from the same periods in 2024. See additional discussion under the caption “Provision for Credit Losses” above.

Current wording

The provision for credit losses for the three months ended March 31, 2026 increased by $2.8 million from the same period in 2025. See additional discussion under the caption “Provision for Credit Losses” above.

Previous wording

Noninterest income derived from the Banking segment for the three and nine months ended September 30, 2025 was up by $938 thousand and $8.1 million, respectively, from the comparable periods in 2024. Year-to-date comparisons were impacted by the first quarter 2025 net gain recognized on sales-leaseback transactions and the second quarter 2024 net gain on sale of a bank-owned operations facility. Excluding these items, Banking noninterest income for the three and nine months ended September 30, 2025 increased by $938 thousand and $2.1 million, respectively, largely reflecting increases in mortgage banking revenues and loan related derivative income. See additional disclosure under the caption “Noninterest Income” above.

Current wording

Noninterest income derived from the Banking segment was $6.4 million for the three months ended March 31, 2026, compared to $12.6 million for the same period in 2025. Included in the three months ended March 31, 2025 was a $7.0 million net gain recognized on sale-leaseback transactions. Excluding this item, Banking noninterest income increased by $789 thousand, largely reflecting increases in mortgage banking revenues. See additional disclosure under the caption “Noninterest Income” above.

Previous wording

Banking noninterest expenses for the three and nine months ended September 30, 2025 totaled $28.7 million and $89.7 million, respectively. Included in the nine months ended September 30, 2025 was $4.9 million of the total pension plan settlement charge that was recognized and allocated to the Banking segment in the first quarter. Excluding this item, noninterest expenses for the Banking segment for the three and nine months ended September 30, 2025 increased by $1.3 million and $3.5 million, respectively, from the same periods in 2024, reflecting increases in salaries and employee benefits expense, net occupancy, outsourced services, and system conversion costs, partially offset by a decrease in FDIC insurance costs. See additional discussion under the caption “Noninterest Expense” above.

Current wording

Banking noninterest expenses for the three months ended March 31, 2026 totaled $30.1 million compared to $32.5 million for the same period in 2025. Included in the three months ended March 31, 2025 was $4.9 million of the total pension plan settlement charge that was allocated to the Banking segment. Excluding this item, noninterest expenses for the Banking segment increased by $2.5 million, reflecting increases in salaries and employee benefits expense and outsourced services expense, partially offset by a decrease in FDIC insurance costs. See additional discussion under the caption “Noninterest Expense” above.

Previous wording

For the three and nine months ended September 30, 2025, noninterest income derived from the Wealth Management Services segment increased by $426 thousand and decreased by $808 thousand, respectively, from the same periods in 2024. The year-to-date comparison was impacted by the first quarter 2024 litigation settlement. Excluding this item, Wealth Management noninterest income for the three and nine months ended September 30, 2025 increased by $426 thousand and $1.3 million, respectively, from the same periods in 2024, largely reflecting an increase in asset-based revenues. See further discussion under the caption “Noninterest Income” above.

Current wording

Noninterest income derived from the Wealth Management Services segment for the three months ended March 31, 2026 increased by $865 thousand from the same period in 2025, largely reflecting an increase in asset-based revenues. See further discussion under the caption “Noninterest Income” above.

Previous wording

Wealth Management Services segment noninterest expenses for the three and nine months ended September 30, 2025 totaled $7.0 million and $24.7 million, respectively. Included in the nine months ended September 30, 2025 was $1.5 million of the total pension plan settlement charge, which was recognized and allocated to the Wealth Management Services segment in the first quarter. Excluding this item, noninterest expenses for the Wealth Management Services segment for the three and nine months ended September 30, 2025 decreased modestly by $61 thousand and increased by $1.8 million, respectively, from the same periods in 2024. The year-to-date change largely reflected increases in salaries and employee benefits expense. See additional discussion under the caption “Noninterest Expense” above.

Current wording

Noninterest expenses for the Wealth Management Services segment for the three months ended March 31, 2026 totaled $7.7 million, compared to $9.7 million for the same period in 2025. Included in the three months ended March 31, 2025 was $1.5 million of the total pension plan settlement charge that was allocated to the Wealth Management Services segment. Excluding this item, noninterest expenses for the Wealth Management Services segment decreased by $451 thousand. This included a decrease in outsourced services expense, partially offset by higher salaries and benefits expense. See additional discussion under the caption “Noninterest Expense” above.

Previous wording

The Corporation’s securities portfolio is managed to generate interest income, to implement interest rate risk management strategies, and to provide a readily available source of liquidity for balance sheet management. Securities are designated as either available for sale, held to maturity or trading at the time of purchase. The Corporation does not maintain a portfolio of trading securities and does not have securities designated as held to maturity. Securities available for sale may be sold in response to changes in market conditions, prepayment risk, rate fluctuations, liquidity, or capital requirements. Debt securities available for sale are reported at fair value, with any unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity, net of tax, until realized.

Current wording

The Corporation’s securities portfolio is managed to generate interest income, to implement interest rate risk management strategies, and to provide a readily available source of liquidity for balance sheet management. Securities are designated as either available for sale, held to maturity or trading at the time of purchase. The Corporation does not maintain a portfolio of trading securities and does not have securities designated as held to maturity. Securities available for sale may be sold in response to changes in market conditions, prepayment risk, rate fluctuations, liquidity, or capital requirements. Debt

Previous wording

See Notes 3 and 9 to the Unaudited Consolidated Financial Statements for additional information regarding the determination of fair value of investment securities.

Current wording

See Notes 3 and 7 to the Unaudited Consolidated Financial Statements for additional information regarding the determination of fair value of investment securities.

Previous wording

The securities portfolio represented 14% of total assets at September 30, 2025, compared to 13% of total assets at December 31, 2024. The largest component of the securities portfolio is mortgage-backed securities, all of which are issued by U.S. government agencies or U.S. government-sponsored enterprises.

Current wording

The securities portfolio represented 14% of total assets at both March 31, 2026 and December 31, 2025. The largest component of the securities portfolio is mortgage-backed securities, all of which are issued by U.S. government agencies or U.S. government-sponsored enterprises.

Previous wording

The carrying amounts of available for sale debt securities as of September 30, 2025 and December 31, 2024 included net unrealized losses of $100.7 million and $133.3 million, respectively. The net unrealized losses were primarily concentrated in obligations of U.S. government agencies and U.S. government-sponsored enterprises, including mortgage-backed securities, and primarily attributable to relative changes in market interest rates since the time of purchase. See Note 3 to the Unaudited Consolidated Financial Statements for additional information.

Current wording

The carrying amounts of available for sale debt securities as of March 31, 2026 and December 31, 2025 included net unrealized losses of $96.6 million and $94.9 million, respectively. The net unrealized losses were primarily concentrated in obligations of U.S. government agencies and U.S. government-sponsored enterprises, including mortgage-backed securities, and primarily attributable to relative changes in market interest rates since the time of purchase. See Note 3 to the Unaudited Consolidated Financial Statements for additional information.

Previous wording

We primarily serve individuals and businesses located in southern New England, and a substantial portion of our loans are secured by properties in southern New England. Total loans amounted to $5.1 billion at September 30, 2025, down by $15.3 million, or 0.3%, from the end of 2024.

Current wording

We primarily serve individuals and businesses located in southern New England, and a substantial portion of our loans are secured by properties in southern New England. Total loans amounted to $5.0 billion at March 31, 2026, down by $119.5 million, or 2%, from the end of 2025.

Previous wording

(1)Includes negative basis adjustments associated with fair value hedges of $255 thousand and $1.5 million, respectively, at September 30, 2025 and December 31, 2024. See Note 8 to the Unaudited Consolidated Financial Statements for additional disclosure.

Current wording

(1)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 to the Unaudited Consolidated Financial Statements for additional disclosure.