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Washington Trust Bancorp Reports Strong Fourth Quarter and Year-End Results for 2025

Washington Trust Bancorp, Inc., trading under Nasdaq as WASH, has announced its financial results for the fourth quarter and full year of 2025. The organization reported an impressive net income of $16.0 million for the fourth quarter, equating to $0.83 per diluted share, showcasing a significant increase from the previous quarter where net income stood at $10.8 million, or $0.56 per diluted share.

Financial Performance Overview

In terms of full-year performance, Washington Trust reported net income totaling $52.2 million, translating to $2.71 per diluted share. This marks a notable turnaround from the prior year, where the company incurred a net loss of $28.1 million, or $1.63 per diluted share for 2024. When adjusted for previously disclosed infrequent transactions, the adjusted net income for the year amounted to $51.8 million, or $2.69 per diluted share, in comparison to the previous year’s $40.9 million and $2.37 per diluted share.

Chairman and CEO Edward O. "Ned" Handy III attributed the fourth quarter results to sustained earnings momentum and improving profitability, underscored by margin expansion, substantial in-market deposit growth, and increased revenues from wealth management and mortgage banking. An additional point of focus is the establishment of a dedicated institutional banking team that aligns with the company's strategy for sustainable growth as they move into 2026.

Key Financial Metrics from Q4 2025

• - Net Interest Margin (NIM): The net interest margin was reported at 2.56%, an increase of 16 basis points from the prior quarter. For the full year, NIM averaged 2.40%, a rise of 53 basis points compared to 2024.
• - Provision for Credit Losses: This normalized to $600,000 with asset quality metrics showing improvements.
• - Wealth Management Revenues: A growth of 5% in wealth management revenues was reported, reaching $10.9 million.
• - Mortgage Loan Originations and Sales: The bank noted an increase of 21% and 25% in mortgage loan originations and sales respectively.
• - Loan Balances: Total loan balances remained stable at $5.1 billion with significant growth observed in in-market deposits, which increased by 1% from September 30, 2025, and 9% year over year.

Financial Highlights

Washington Trust’s total risk-based capital ratio was a strong 12.95% at the end of December, which is well above regulatory requirements. The company’s investment securities stood at $940 million, reflecting a slight decrease of 2% from the previous quarter. On the loans front, total loans amounted to $5.134 billion, inching up marginally by 0.2%.

The contributions to the company’s financial uplift were due in part to further investments in their commercial and wealth management divisions, promoting better service delivery and client engagement. This proactive approach places them in a favorable position for future opportunities as the economic landscape evolves moving into 2026.

Market Connection

As one of the oldest community banks nationwide, Washington Trust Bancorp is a major player in the northeastern financial services sector, providing a broad range of solutions, including commercial banking, personal banking, and wealth management. Moreover, with its trading symbol WASH listed on NASDAQ, it promises a robust visibility in financial markets.

The bank will host a conference call to further discuss its results, business highlights, and outlook on January 29, 2026. Interested parties can join by dialing in or accessing the webcast on the Washington Trust website.

As it continues to grow and adapt, Washington Trust’s emphasis on resilience and strategic investment is expected to drive further financial success, solidifying its foothold in the competitive banking sector.