Washington Trust Bancorp Reports Strong Second Quarter Performance for 2025
Washington Trust Bancorp Reports Strong Second Quarter Performance for 2025
Washington Trust Bancorp, Inc. (Nasdaq: WASH), the parent company of The Washington Trust Company, recently announced its financial results for the second quarter of 2025. The corporation reported a net income of $13.2 million, translating to $0.68 per diluted share, marking an increase from $12.2 million or $0.63 per diluted share in the first quarter of the same year.
Edward O. Handy III, Chairman and CEO of Washington Trust, commented on the results, "Our diversified business model is performing positively, which is reflected in our growth in net interest income, wealth management, and mortgage banking revenue. We remain committed to providing exceptional full-service banking as we approach our 225th anniversary next month."
Financial Highlights
The second quarter of 2025 showcased several key financial highlights:
- - Net Interest Income: The total net interest income for the quarter was $37.2 million, up 2% from the previous quarter. The net interest margin improved to 2.36% from 2.29%.
- - Provision for Credit Losses: A provision of $600 thousand was recognized for credit losses, a decrease from $1.2 million in the first quarter.
- - Wealth Management Revenue: Wealth management revenues experienced a slight increase of 2%, totaling $10.1 million.
- - Mortgage Banking Revenue: The mortgage banking division saw a remarkable 32% increase in revenue, totaling $3 million, attributed to a higher volume of loans sold.
- - Loan Growth: Total loans reached $5.1 billion, a 1% increase from the prior quarter, while total deposits also increased to $5.0 billion.
Profitability and Costs
Washington Trust's noninterest income stood at $17.1 million for the quarter, a drop from $22.6 million in the previous quarter due to nonrecurring gains in the first quarter. When excluding these gains, adjusted noninterest income increased by 9%.
Despite a reduction in overall noninterest expense to $36.5 million, a significant component of this expense was related to employee benefits, rising by 3% to $23 million. Advertising efforts also saw a substantial increase, highlighting the bank's focus on growth amid competitive pressures.
For income taxes for the quarter, an expense of $3.9 million was recognized, reflecting a slight increase in the effective tax rate to 22.7%.
Capital Position
The company maintained a robust capital position, with total shareholders’ equity at $527.5 million. The total risk-based capital ratio was 13.06%, surpassing regulatory minimums. The book value per share increased to $27.36.
Looking Ahead
Washington Trust will host a conference call on July 22, 2025, at 8:30 AM ET to discuss these results further. Shareholders and interested parties can access the call by dialing 1-833-470-1428 with access code 177395. The company plans to continue its trajectory of growth, focused on banking and financial services as it moves toward its notable anniversary.
As the oldest community bank in the nation, Washington Trust Bancorp, Inc. has established itself as a principal player in the Northeast financial services market, delivering a full range of banking, mortgage, and wealth management services from its locations in Rhode Island, Connecticut, and Massachusetts. Further investor information can be found on their website at Washington Trust Investor Relations.
Topics Financial Services & Investing）
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