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Jun 30
Washington Trust Q2 2025 Earnings Report
Washington Trust reported strong second quarter 2025 results, driven by growth in net interest income, wealth management, and mortgage banking revenues, while maintaining a well-capitalized position.
Key Takeaways
Washington Trust Bancorp, Inc. announced a net income of $13.2 million, or $0.68 per diluted share, for the second quarter of 2025, an increase from the previous quarter. The company saw positive performance across its diversified business model, with growth in net interest income, wealth management revenue, and mortgage banking revenue. The net interest margin improved, and the company maintained strong capital levels.
Net income for Q2 2025 increased to $13.2 million, or $0.68 per diluted share, up from $12.2 million, or $0.63 per diluted share, in Q1 2025.
Net interest margin improved by 7 basis points to 2.36% in Q2 2025, reflecting a decrease in the cost of interest-bearing liabilities.
Wealth management revenues grew by 2% and mortgage banking revenues surged by 32% from the preceding quarter, indicating strong performance in noninterest income segments.
Total loans increased by 1% to $5.1 billion, and in-market deposits rose by 1% from the prior quarter, demonstrating continued balance sheet growth.
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.comMassachusetts Residential Real Estate Revenue
CapyFin.comRhode Island Residential Real Estate Revenue
CapyFin.comConnecticut Residential Real Estate Revenue
CapyFin.comAll Other States Residential Real Estate Revenue
CapyFin.com Forward Guidance
Washington Trust expects its full-year 2025 effective tax rate to be approximately 22.4%. The company will host a conference call to discuss its second quarter results, business highlights, and outlook.
Positive Outlook
- Expected full-year 2025 effective tax rate of approximately 22.4% provides clarity on future tax expenses.
- Continued focus on providing exceptional full-service banking to customers, reinforcing long-term strategy.
- Diversified business model is performing positively, suggesting resilience in various market conditions.
- Growth in net interest income, wealth management revenue, and mortgage banking revenue is expected to continue.
- Maintaining well-capitalized status provides a strong foundation for future operations and potential growth.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The report does not provide detailed financial projections beyond the effective tax rate.
- Potential for changes in general business and economic conditions to impact future results.
- Interest rate changes or volatility could affect net interest income.
- Reductions in the market value or outflows of wealth management AUA could impact revenue.