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Washington Trust Q1 2025 Earnings Report
Washington Trust Bancorp, Inc. reported its first quarter 2025 results, highlighting an increase in net interest income and an expansion of net interest margin.
Key Takeaways
Washington Trust Bancorp, Inc. announced net income of $12.2 million, or $0.63 per diluted share, for the first quarter of 2025. This quarter's results were positively impacted by sales leaseback transactions and a pre-tax net gain on the sale of bank-owned properties, while also recognizing a pre-tax non-cash pension plan settlement charge.
Net interest margin expanded by 34 basis points to 2.29% in Q1 2025, benefiting from balance sheet repositioning.
In-market deposits grew by 4% from December 31, 2024, reaching $5.0 billion.
Wealth management revenues decreased by 2% from the preceding quarter, with assets under administration down 4%.
Mortgage banking revenues saw a 19% decrease due to lower loan volumes sold to the secondary market.
Washington Trust
Washington Trust
Washington Trust Revenue by Segment
Washington Trust Revenue by Geographic Location
Revenue by Segment
Wealth Management Revenues Revenue
CapyFin.comMortgage Banking Revenues Revenue
CapyFin.comRevenue by Geographic Location
Connecticut Commercial Real Estate Revenue
CapyFin.comMassachusetts Commercial Real Estate Revenue
CapyFin.comRhode Island Commercial Real Estate Revenue
CapyFin.comAll Other States Commercial Real Estate Revenue
CapyFin.com Forward Guidance
The Corporation expects its full-year 2025 effective tax rate to be approximately 22.4%.
Positive Outlook
- The company's effective focus on its balance sheet is expected to continue expanding net interest margin.
- Continued in-market deposit growth is anticipated, strengthening the funding base.
- The balance sheet repositioning transactions are expected to yield ongoing benefits.
- The company remains steadfast in its commitment to customers and communities.
- Capital levels are strong and exceed regulatory minimums, providing financial flexibility.
Challenges Ahead
- Ongoing volatility in national and international financial markets could impact performance.
- Changes in interest rates or volatility could affect the balance and mix of loans and deposits.
- Potential for higher future credit losses due to changes in economic assumptions or adverse developments.
- Reductions in the market value or outflows of wealth management assets under administration could negatively impact revenues.
- Operational risks, including cybersecurity incidents and natural disasters, could affect financial results.