Washington Trust Bancorp Reports Q3 2025 Financial Results with $10.8M Net Income

Washington Trust Bancorp, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a net income of $10.8 million for the quarter, a slight decrease from $11.0 million in the same period last year. For the nine months ended September 30, 2025, net income rose to $36.3 million, up from $32.7 million in 2024. The company’s total revenues increased by 16% to $56.5 million for the quarter and by 17% to $169.8 million for the nine months, driven primarily by a 20% increase in net interest income, which reached $38.8 million for the quarter and $112.4 million year-to-date.

The results reflect significant changes in the company’s operations compared to the previous fiscal period. Notably, the provision for credit losses surged to $6.8 million for the quarter, a substantial increase from $200,000 in the same period last year, primarily due to charge-offs on two commercial loan relationships. The allowance for credit losses on loans decreased to $36.6 million, or 0.71% of total loans, down from $41.9 million, or 0.82%, at the end of 2024. This reduction was attributed to improved loss estimates and the resolution of certain problem loans.

Strategically, Washington Trust has been active in repositioning its balance sheet, including the sale of lower-yielding debt securities and residential real estate loans. The company completed a significant sales-leaseback transaction for five branch locations, resulting in a pre-tax gain of $7.0 million recognized in noninterest income. Additionally, the Bank's registered investment adviser subsidiary acquired wealth management client advisory contracts from Lighthouse, enhancing its service offerings and assets under administration, which increased by 9% to $7.7 billion.

Operationally, total loans decreased slightly to $5.1 billion, with commercial real estate loans remaining stable at $2.2 billion, while residential real estate loans fell to $2.1 billion. The company’s total deposits rose to $5.2 billion, reflecting an increase in in-market deposits, which were up by 8% from the end of 2024. The bank's capital position remains strong, with a total risk-based capital ratio of 12.90%, exceeding regulatory requirements. Looking ahead, Washington Trust anticipates continued growth in its core banking and wealth management services, while managing credit risk and maintaining a strong liquidity position.