Interest Rate Sensitivity Risk: Changes in prevailing interest rates can significantly impact Washington Trust's net interest margin, as higher funding costs or lower loan yields may reduce profitability and earnings.

Credit Quality Deterioration Risk: An economic downturn, adverse changes in market conditions, or specific borrower issues could lead to an increase in loan defaults and delinquencies, requiring higher loan loss provisions and negatively affecting asset quality and capital.

Liquidity and Funding Risk: The bank's ability to maintain sufficient cash flow and access cost-effective funding sources, such as customer deposits or wholesale funding, is crucial; a lack of liquidity could impede operations, growth, and ability to meet obligations.