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, 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 and six months ended June 30, 2026 are not necessarily indicative of the results for the full-year ended December 31, 2026 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 and nine months ended September 30, 2026 are not necessarily indicative of the results for the full-year ending December 31, 2026 or any future period.

Previous wording

We continue to leverage our strong regional brand to build market share and remain steadfast in our commitment to provide superior service. We believe the key to future growth is providing customers with convenient in-person service and digital banking solutions. We have plans to open two new full-service branches later in 2026; one in Pawtucket and another in Bristol, Rhode Island.

Current wording

We continue to leverage our strong regional brand to build market share and remain steadfast in our commitment to provide superior service. We believe the key to future growth is providing customers with convenient in-person service and digital banking solutions. We have plans to open two new full-service branches in Rhode Island; one in Pawtucket in late 2026 and another in Bristol in early 2027.

Previous wording

Net interest income, the primary source of our operating income, totaled $41.8 million and $82.3 million, respectively, for the three and six months ended June 30, 2026, compared to $37.2 million and $73.6 million, respectively, for the same periods in 2025.

Current wording

Net interest income, the primary source of our operating income, totaled $44.7 million and $127.0 million, respectively, for the three and nine months ended September 30, 2026, compared to $38.8 million and $112.4 million, respectively, for the same periods in 2025.

Previous 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, as well as the cessation of amortization of a deferred loss associated with a previously terminated cash flow hedge. As of May 1, 2026, the remaining deferred loss was fully amortized. As noted in the Unaudited Consolidated Statements of Cash Flows, amortization of the terminated cash flow hedge loss (a reduction to net interest income) amounted to $2.8 million in 2026, compared to $4.3 million in 2025.

Current wording

The improvement in net interest income, FTE net interest income and NIM discussed below reflected lower rates paid on, and decreases in, average interest-bearing liability balances, partially offset by decreases in, and lower yields on, average interest-earnings asset balances. The improvement also reflected the cessation of amortization of a deferred loss associated with a previously terminated cash flow hedge. As of May 1, 2026, the remaining deferred loss was fully amortized. As noted in the Unaudited Consolidated Statements of Cash Flows, amortization of the terminated cash flow hedge loss (a reduction to net interest income) amounted to $2.8 million in 2026, compared to $6.4 million in 2025.

Previous wording

FTE net interest income for the three and six months ended June 30, 2026 amounted to $42.0 million and $82.7 million, respectively, up by $4.6 million and $8.7 million, respectively, from the same periods in 2025. For the three and six months ended June 30, 2026, decreases in average interest-bearing liability balances net of decreases in average interest-earning assets increased net interest income by $1.3 million and $2.0 million, respectively. Decreases in funding costs outpaced decreases in asset yields, increasing net interest income by $3.3 million and $6.7 million, respectively, for the three and six months ended June 30, 2026.

Current wording

FTE net interest income for the three and nine months ended September 30, 2026 was up by $5.9 million and $14.5 million, respectively, from the same periods in 2025. For the three and nine months ended September 30, 2026, decreases in average interest-bearing liability balances net of decreases in average interest-earning assets increased net interest income by $1.9 million and $3.7 million, respectively. Decreases in funding costs outpaced decreases in asset yields, increasing net interest income by $4.0 million and $10.8 million, respectively, for the three and nine months ended September 30, 2026.

Previous wording

NIM was 2.73% and 2.68%, respectively, for the three and six months ended June 30, 2026, up from 2.36% and 2.32%, respectively, for the same periods in 2025.

Current wording

NIM was 2.84% and 2.73%, respectively, for the three and nine months ended September 30, 2026, up from 2.40% and 2.35%, respectively, for the same periods in 2025.

Previous wording

Total average securities for the three and six months ended June 30, 2026 decreased by $70.5 million and $45.4 million, respectively, from 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 six months ended June 30, 2026 was 3.41% and 3.44%, respectively, down by 6 and 1 basis points, respectively, from the same periods in 2025.

Current wording

Total average securities for the three and nine months ended September 30, 2026 decreased by $102.6 million and $64.7 million, respectively, from 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, 2026 was 3.37% and 3.42%, respectively, down by 9 and 3 basis points, respectively, from the same periods in 2025.

Previous wording

Total average loan balances for the three and six months ended June 30, 2026 decreased by $116.5 million and $69.4 million, respectively, from the comparable 2025 periods, reflecting decreases in the residential and commercial real estate loan portfolios. The yield on total loans for the three and six months ended June 30, 2026 was 5.20% and 5.17%, respectively, down by 9 and 13 basis points, respectively, from the same periods in 2025. The decrease reflected the impact of lower market interest rates, partially offset by the benefit from the cessation of deferred loss amortization discussed above.

Current wording

Total average loan balances for the three and nine months ended September 30, 2026 decreased by $34.2 million and $57.5 million, respectively, from the comparable 2025 periods, reflecting decreases in the residential and commercial real estate loan portfolios. The yield on total loans for the three and nine months ended September 30, 2026 was 5.28% and 5.21%, respectively, down by 2 and 9 basis points, respectively, from the same periods in 2025. The decrease reflected the impact of relatively lower market interest rates, partially offset by the benefit from the cessation of deferred loss amortization discussed above.

Previous wording

FHLB advances and brokered time deposits are utilized as wholesale funding sources. The average balance of FHLB advances for the three and six months ended June 30, 2026 decreased by $397.2 million and $348.5 million, respectively, from the comparable periods in 2025. The average rate paid on such advances for the three and six months ended June 30, 2026 was 4.10% and 4.13%, respectively, down by 39 and 43 basis points, respectively, from the same periods in 2025. There were no wholesale brokered time deposits for the three and six months ended June 30, 2026. This compared to

Current wording

FHLB advances and brokered time deposits are utilized as wholesale funding sources. The average balance of FHLB advances for the three and nine months ended September 30, 2026 decreased by $510.8 million and $403.2 million, respectively, from the comparable periods in 2025. The average rate paid on such advances for the three and nine months ended September 30, 2026 was 4.03% and 4.11%, respectively, down by 41 basis points from both the three and nine months

Previous wording

$8.5 million and $97.9 million, respectively for the three and six months ended June 30, 2025 with average rates of 4.96% and 5.05%, respectively. 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.

Current wording

-54- ended September 30, 2025. There were no wholesale brokered time deposits for the three and nine months ended September 30, 2026. This compared to $539 thousand and $65.1 million, respectively for the three and nine months ended September 30, 2025 with average rates of 4.42% and 5.04%, respectively. The decline in wholesale funding balances reflected increases in the average balances of in-market deposits and timing of liquidity management activities. Rates paid on wholesale funding have declined from the prior year, reflecting relatively lower market interest rates.

Previous wording

Average in-market interest-bearing deposits, which excludes wholesale brokered deposits, for the three and six months ended June 30, 2026 increased by $192.2 million and $235.4 million, respectively, from the same periods 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 both the three and six months ended June 30, 2026 was 2.41%, down by 40 and 38 basis points, respectively, from the same periods in 2025, largely reflecting lower market interest rates. The average balance of noninterest-bearing demand deposits for the three and six months ended June 30, 2026 increased by $6.0 million and decreased by $5.2 million, respectively, from the same periods in 2025.

Current wording

Average in-market interest-bearing deposits, which excludes wholesale brokered deposits, for the three and nine months ended September 30, 2026 increased by $288.4 million and $253.2 million, respectively, from the same periods in 2025, reflecting increases in average balances across all deposit categories, except time deposits. The average rate paid on in-market interest-bearing deposits for both the three and nine months ended September 30, 2026 was 2.42%, down by 36 basis points from both the three and nine months ended September 30, 2025, largely reflecting relatively lower market interest rates. The average balance of noninterest-bearing demand deposits for the three and nine months ended September 30, 2026 increased by $16.4 million and $2.1 million, respectively, from the same periods in 2025.

Previous wording

Net charge-offs totaled $55 thousand and $65 thousand, respectively, for the three and six months ended June 30, 2026, compared to $647 thousand and $3.0 million, respectively, for the same periods in 2025. See additional discussion regarding the ACL under the caption “Asset Quality” below.

Current wording

See additional discussion under the caption “Asset Quality” below.

Previous wording

Total noninterest income amounted to $18.7 million and $36.0 million, respectively, for the three and six months ended June 30, 2026, compared to $17.1 million and $39.7 million, respectively, for the same periods in 2025. Total noninterest income in the six months ended 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 and six months ended June 30, 2026 was up by $1.6 million and $3.2 million, respectively, from the same periods in 2025.

Current wording

Total noninterest income amounted to $20.3 million and $56.2 million, respectively, for the three and nine months ended September 30, 2026, compared to $17.6 million and $57.4 million, respectively, for the same periods in 2025. Total noninterest income in the nine months ended September 30, 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 and nine months ended September 30, 2026 was up by $2.6 million and $5.9 million, respectively, from the same periods in 2025.

Previous wording

Wealth management revenues for the three and six months ended June 30, 2026 increased by $1.1 million and $1.8 million, respectively, from the same periods in 2025, 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 and six months ended June 30, 2026 increased by 13% and 11%, respectively, over the average balances for the same periods in 2025, largely reflecting net investment appreciation of AUA.

Current wording

Wealth management revenues for the three and nine months ended September 30, 2026 increased by $716 thousand and $2.6 million, respectively, from the same periods in 2025, 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 and nine months ended September 30, 2026 increased by 6% and 9%, respectively, over the average balances for the same periods in 2025, largely reflecting net investment appreciation of AUA.

Previous wording

Total noninterest expense amounted to $38.6 million and $76.4 million, respectively, for the three and six months ended June 30, 2026, compared to $36.5 million and $78.7 million, respectively, for the same periods in 2025. Total noninterest expense in the six months ended 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 and six months ended June 30, 2026, was up by $2.1 million and $4.1 million, respectively, from the same periods in 2025.

Current wording

Total noninterest expense amounted to $38.8 million and $115.2 million, respectively, for the three and nine months ended September 30, 2026, compared to $35.7 million and $114.5 million, respectively, for the same periods in 2025. Total noninterest expense in the nine months ended September 30, 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 and nine months ended September 30, 2026, was up by $3.1 million and $7.1 million, respectively, from the same periods in 2025.

Previous wording

Salaries and employee benefits expense, the largest component of total noninterest expense, for the three and six months ended June 30, 2026 increased by $2.3 million and $4.2 million, respectively, compared to the same periods in 2025. This reflected annual merit and staffing increases, including the addition of resources in our commercial banking and wealth management business lines.

Current wording

Salaries and employee benefits expense, the largest component of total noninterest expense, for the three and nine months ended September 30, 2026 increased by $2.5 million and $6.7 million, respectively, compared to the same periods in 2025. This was primarily due to higher compensation and medical insurance benefit costs, as well as increased staffing.

Previous wording

FDIC insurance costs for the three and six months ended June 30, 2026 decreased by $283 thousand and $610 thousand, respectively, compared to the same periods in 2025, reflecting a decrease in average assets from a year ago and a lower FDIC deposit assessment rate.

Current wording

FDIC insurance costs for the three and nine months ended September 30, 2026 decreased by $261 thousand and $871 thousand, respectively, compared to the same periods in 2025, reflecting a decrease in average assets and a lower FDIC deposit assessment rate.

Previous 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.

Current wording

The effective tax rates differed from the federal rate of 21%, primarily due to benefits from tax-exempt income, income from BOLI, and federal tax credits, which were partially offset by state income tax expense. 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 decrease in the effective tax rate in 2026 reflected changes in state tax expense and increased federal tax credit benefits.

Current wording

The decrease in the effective tax rate in 2026 largely reflected changes in state tax expense, as well as increases in federal tax credit benefits and income from BOLI.

Previous wording

The Corporation’s net deferred tax assets are reported in other assets and amounted to $36.3 million at June 30, 2026, compared to $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.

Current wording

The Corporation’s net deferred tax assets are reported in other assets and amounted to $47.2 million at September 30, 2026, compared to $36.9 million at December 31, 2025. The increase in net deferred tax assets reflected increases in deferred tax assets associated with a decline in fair value of securities available for sale due to changes in market interest rates. Management believes deferred tax assets, net of the valuation allowance, are more-likely-than-not to be realized.

Previous wording

Net interest income for the Banking segment for the three and six months ended June 30, 2026 increased by $4.6 million and $8.7 million, respectively, from the same periods in 2025. Net interest income benefited from lower rates paid on, and decreases in, average interest-bearing liability balances, which was partially offset by decreases in, and lower yields on, average interest-earning asset balances. See additional discussion under the caption “Net Interest Income” above.

Current wording

Net interest income for the Banking segment for the three and nine months ended September 30, 2026 increased by $5.9 million and $14.6 million, respectively, from the same periods in 2025. See additional discussion under the caption “Net Interest Income” above.

Previous wording

The provision for credit losses for the three and six months ended June 30, 2026 increased by $1.0 million and $3.8 million, respectively, from the same periods in 2025. See additional discussion under the caption “Provision for Credit Losses” above.

Current wording

The provision for credit losses for the three and nine months ended September 30, 2026 decreased by $5.0 million and $1.2 million, respectively, from the same periods in 2025. See additional discussion under the caption “Provision for Credit Losses” above.

Previous wording

Noninterest income derived from the Banking segment was $7.3 million and $13.7 million, respectively, for the three and six months ended June 30, 2026, compared to $6.7 million and $19.4 million, respectively, for the same periods in 2025. Included in the six months ended June 30, 2025 was a $7.0 million net gain recognized on sale-leaseback transactions. Excluding this item, Banking noninterest income for the three and six months ended June 30, 2026 increased by $530 thousand and $1.3 million, respectively, largely reflecting increases in mortgage banking revenues. See additional disclosure under the caption “Noninterest Income” above.

Current wording

Noninterest income derived from the Banking segment was $8.9 million and $22.6 million, respectively, for the three and nine months ended September 30, 2026, compared to $7.1 million and $26.5 million, respectively, for the same periods in 2025. Included in the nine months ended September 30, 2025 was a $7.0 million net gain recognized on sale-leaseback transactions. Excluding this item, Banking noninterest income for the three and nine months ended September 30, 2026 increased by $1.8 million and $3.1 million, respectively, largely reflecting increases in loan related derivative income and income from BOLI. See additional discussion under the caption “Noninterest Income” above.

Previous wording

Banking noninterest expenses for the three and six months ended June 30, 2026 totaled $31.0 million and $61.1 million, respectively, compared to $28.5 million and $61.1 million, respectively, for the same periods in 2025. Included in the six months ended June 30, 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 for the three and six months ended June 30, 2026 increased by $2.5 million and $4.9 million, respectively, reflecting increases in salaries and employee benefits expense and outsourced services expense, partially offset by a decrease in FDIC deposit insurance costs. The increase in outsourced services reflected changes in third-party provided services, including software as a service and processing costs. See

Current wording

Banking noninterest expenses for the three and nine months ended September 30, 2026 totaled $31.5 million and $92.6 million, respectively, compared to $28.7 million and $89.7 million, respectively, for the same periods in 2025. Included in the nine months ended September 30, 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 for the three and nine months ended September 30, 2026 increased by $2.8 million and $7.8 million, respectively, reflecting increases in salaries and employee benefits expense and outsourced services expense, partially offset by a decrease in FDIC deposit insurance costs. See additional discussion under the caption “Noninterest Expense” above.

Previous wording

Noninterest income derived from the Wealth Management Services segment for the three and six months ended June 30, 2026 increased by $1.1 million and $1.9 million, respectively, from the same periods in 2025, 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 and nine months ended September 30, 2026 increased by $829 thousand and $2.7 million, respectively, from the same periods in 2025, largely reflecting an increase in asset-based revenues. See further discussion under the caption “Noninterest Income” above.

Previous wording

Noninterest expenses for the Wealth Management Services segment for the three and six months ended June 30, 2026 totaled $7.6 million and $15.3 million, respectively, compared to $8.0 million and $17.7 million, respectively, for the same periods in 2025. Included in the six months ended June 30, 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 for the three and six months ended June 30, 2026 decreased by $421 thousand and $872 thousand, respectively, reflecting decreases in outsourced services expense, partially offset by an increase in salaries and employee benefits expense. The decrease in outsourced services was attributable to changes in third-party provided services, including software as a service. See additional discussion of salaries and employee benefits expense under the caption “Noninterest Expense” above.

Current wording

Noninterest expenses for the Wealth Management Services segment for the three and nine months ended September 30, 2026 totaled $7.3 million and $22.5 million, respectively, compared to $7.0 million and $24.7 million, respectively, for the same periods in 2025. Included in the nine months ended September 30, 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 for the three and nine months ended September 30, 2026 increased by $237 thousand and decreased by $635 thousand, respectively.

Previous wording

The securities portfolio represented 14% of total assets at both June 30, 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.

Current wording

The securities portfolio represented 13% of total assets at September 30, 2026, compared to 14% of total assets at 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 securities portfolio decreased by $55.0 million, or 6%, from the end of 2025, largely reflecting routine pay-downs on mortgage-backed securities.

Current wording

The securities portfolio decreased by $122.5 million, or 13%, from the end of 2025. This decrease largely reflected $75.2 million of routine pay-downs on mortgage-backed securities and a decrease of $46.0 million (pre-tax) in the fair value of available for sale securities.

Previous wording

The carrying amounts of available for sale debt securities as of June 30, 2026 and December 31, 2025 included net unrealized losses of $96.7 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.

Current wording

The carrying amounts of available for sale debt securities as of September 30, 2026 and December 31, 2025 included net unrealized losses of $140.9 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 June 30, 2026, down by $31.3 million, or 1%, from the end of 2025.

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 $5.2 billion at September 30, 2026, up by $30.5 million, or 1%, from the end of 2025.

Previous wording

(1)Includes negative basis adjustments associated with fair value hedges of $1.5 million and $335 thousand, respectively, at June 30, 2026 and December 31, 2025. See Note 6 to the Unaudited Consolidated Financial Statements for additional disclosure.

Current wording

(1)Includes negative basis adjustments associated with fair value hedges of $2.2 million and $335 thousand, respectively, at September 30, 2026 and December 31, 2025. See Note 6 to the Unaudited Consolidated Financial Statements for additional disclosure.

Previous wording

The commercial loan portfolio represented 53% of total loans at June 30, 2026, compared to 54% at December 31, 2025.

Current wording

The commercial loan portfolio represented 54% of total loans at both September 30, 2026 and December 31, 2025.

Previous wording

In making commercial loans, we may occasionally solicit the participation of other banks. The Bank also participates in commercial loans originated by other banks. In such cases, these loans are individually underwritten by us using standards similar to those employed for our self-originated loans. Our participation in commercial loans originated by other banks amounted to $528.6 million and $613.5 million, respectively, at June 30, 2026 and December 31, 2025. Our participation in commercial loans originated by other banks also includes SNCs. SNCs are defined as participation in loans or loan commitments of at least $100.0 million that are shared by three or more banks.

Current wording

In making commercial loans, we may occasionally solicit the participation of other banks. The Bank also participates in commercial loans originated by other banks. In such cases, these loans are individually underwritten by us using standards similar to those employed for our self-originated loans. Our participation in commercial loans originated by other banks amounted to $557.7 million and $613.5 million, respectively, at September 30, 2026 and December 31, 2025. Our participation in commercial loans originated by other banks also includes SNCs. SNCs are defined as participation in loans or loan commitments of at least $100.0 million that are shared by three or more banks.

Previous wording

CRE loans totaled $2.1 billion at June 30, 2026, down by $133.7 million, or 6%, from the balance at December 31, 2025. In the first six months of 2026, CRE advances and originations amounted to $147.3 million, which were more than offset by payments.

Current wording

CRE loans totaled $2.1 billion at September 30, 2026, down by $67.6 million, or 3%, from the balance at December 31, 2025. In the first nine months of 2026, CRE advances and originations amounted to $285.6 million, which were more than offset by payments.

Previous wording

(1)Does not include unfunded commitments of $147.4 million and $127.1 million, respectively, as of June 30, 2026 and December 31, 2025.

Current wording

(1)Does not include unfunded commitments of $136.7 million and $127.1 million, respectively, as of September 30, 2026 and December 31, 2025.

Previous wording

(2)Includes SNC balances of $27.9 million and $45.6 million, respectively, as of June 30, 2026 and December 31, 2025. There were no classified SNC balances as of June 30, 2026 or December 31, 2025.

Current wording

(2)Includes SNC balances of $43.8 million and $45.6 million, respectively, as of September 30, 2026 and December 31, 2025. There were no classified SNC balances as of September 30, 2026 or December 31, 2025.

Previous wording

Multi-family, our largest single CRE segment, totaled $644.2 million as of June 30, 2026, representing 13% of total loans and 31% of the total CRE portfolio. This segment includes non-owner occupied residential properties consisting of four or more units that are rented to tenants. At June 30, 2026, the credit quality of the multi-family segment was 100% pass-rated. Also, there were no nonaccrual loans and all loans were current with respect to payment terms at June 30, 2026 in this segment.

Current wording

Multi-family, our largest single CRE segment, totaled $687.4 million as of September 30, 2026, representing 13% of total loans and 32% of the total CRE portfolio. This segment includes non-owner occupied residential properties consisting of four or more units that are rented to tenants. At September 30, 2026, the credit quality of the multi-family segment was 100% pass-rated. Also, there were no nonaccrual loans and all loans were current with respect to payment terms at September 30, 2026 in this segment.

Previous wording

There continues to be heightened focus in the banking industry on the CRE office sector, given the continuation of remote work and elevated vacancies across the office market. As of June 30, 2026, Washington Trust’s CRE office loan segment totaled $212.1 million, or 4% of total loans and 10% of the total CRE loans. The loans are secured by non-owner occupied office properties, including medical office and lab space, located in our primary lending market area of southern New England - Massachusetts, Connecticut, and Rhode Island. Furthermore, approximately 62% of the CRE office segment balance is secured by properties located in suburban areas. As of June 30, 2026, 86% of the CRE office segment was on accruing status and current with respect to payment terms. Additionally, the credit quality of the CRE office loan segment was 69% pass-rated, 15% special mention-rated, and 17% classified as of June 30, 2026.

Current wording

There continues to be heightened focus in the banking industry on the CRE office sector, given the continuation of remote work and elevated vacancies across the office market. As of September 30, 2026, Washington Trust’s CRE office loan segment totaled $208.1 million, or 4% of total loans and 10% of the total CRE loans. The loans are secured by non-owner occupied office properties, including medical office and lab space, located in our primary lending market area of southern New England - Massachusetts, Connecticut, and Rhode Island. Furthermore, approximately 61% of the CRE office segment balance is secured by properties located in suburban areas. As of September 30, 2026, 94% of the CRE office segment was on accruing status and 93% was current with respect to payment terms. Additionally, the credit quality of the CRE office loan segment was 79% pass-rated, 15% special mention-rated, and 6% classified as of September 30, 2026.

Previous wording

C&I loans amounted to $665.9 million at June 30, 2026, up by $101.8 million, or 18%, from the balance at December 31, 2025, largely reflecting growth from our institutional banking team who serve educational, healthcare and non-profit institutions. In the first six months of 2026, C&I originations and advances amounted to $123.7 million and were partially offset by payments.

Current wording

C&I loans amounted to $661.6 million at September 30, 2026, up by $97.5 million, or 17%, from the balance at December 31, 2025, largely reflecting growth from our institutional banking team who serve educational, healthcare, and non-profit institutions. In the first nine months of 2026, C&I originations and advances amounted to $133.1 million and were partially offset by payments.

Previous wording

Management considers the C&I portfolio to be well-diversified with loans across several industries. The following table presents a summary of C&I loan by industry segmentation:

Current wording

Management considers the C&I portfolio to be well-diversified with loans across several industries. The following table presents a summary of C&I loans by industry segmentation: