Washington Trust Bancorp ( (WASH) ) has released its Q3 earnings. Here is a breakdown of the information Washington Trust Bancorp presented to its investors.
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Washington Trust Bancorp, Inc., the oldest community bank in the U.S. and the largest state-chartered bank in Rhode Island, provides a range of financial services including commercial and mortgage banking, personal banking, and wealth management across New England. In its third quarter of 2025, Washington Trust reported a net income of $10.8 million, or $0.56 per diluted share, marking a decrease from the previous quarter’s $13.2 million. Despite this decline, the company saw growth in net interest income, wealth management, and mortgage banking revenues, alongside a significant increase in in-market deposits.
Key financial highlights for the quarter include a net interest margin increase to 2.40%, a 15% rise in mortgage banking revenues, and a 6% growth in wealth management revenues. The bank also made strategic investments, such as acquiring client accounts from Lighthouse Financial Management, adding $195 million in managed assets, and hiring a new senior executive to lead its commercial banking division. However, the quarter also saw a substantial provision for credit losses at $7.0 million, primarily due to charge-offs related to two commercial loan relationships.
Despite these challenges, Washington Trust successfully reduced nonaccrual commercial loans from $14.0 million to $1.0 million and increased its total deposits by 4% to $5.2 billion. The company’s effective tax rate was slightly lower at 22.2%, and it maintained a strong capital position with a total risk-based capital ratio of 12.90%.
Looking ahead, Washington Trust remains optimistic about its portfolio quality and credit performance, supported by its strategic investments and commitment to customer relationships. The bank continues to focus on delivering personalized services, which it believes will drive long-term value for shareholders.