Washington Trust(WASH) - 2025 Q3 - Quarterly Report

Financial Performance - Adjusted noninterest income for Q3 2025 was $17,636,000, up from $16,272,000 in Q3 2024, representing an increase of 8.4%[191] - Adjusted noninterest expense for Q3 2025 was $35,726,000, compared to $34,504,000 in Q3 2024, reflecting an increase of 3.5%[191] - Adjusted net income for the nine months ended September 30, 2025, was $35,853,000, up from $30,424,000 in the same period of 2024, indicating a growth of 17.5%[191] - Adjusted diluted earnings per common share for Q3 2025 was $0.56, unchanged from Q3 2024, while the nine-month figure decreased slightly from $1.91 to $1.88[194] - Net income for Q3 2025 was $10.8 million, a slight decrease of 1% from $11.0 million in Q3 2024, while for the nine months, net income increased by 11% to $36.3 million from $32.7 million[213] - Adjusted net income (non-GAAP) for Q3 2025 was $10.8 million, down 1% from $11.0 million in Q3 2024, and for the nine months, it increased by 18% to $35.9 million from $30.4 million[214] Revenue and Income Sources - Total revenues for Q3 2025 were $56.5 million, a 16% increase compared to $48.5 million in Q3 2024, and for the nine months, total revenues increased by 17% to $169.8 million from $145.6 million[213] - Net interest income for Q3 2025 was $38.8 million, an increase of 20% from $32.3 million in Q3 2024, while for the nine months ended September 30, 2025, it reached $112.4 million, up 18% from $95.5 million in the same period last year[213] - Noninterest income for Q3 2025 was $17.6 million, an 8% increase from $16.3 million in Q3 2024, and for the nine months, it rose 14% to $57.4 million from $50.1 million[213] Expenses and Cost Management - The Corporation's principal noninterest expenses include salaries and employee benefits, which are critical for maintaining service quality and market share[200] - Total noninterest expense for the three months ended September 30, 2025, was $35.7 million, an increase of $1.2 million (4%) compared to $34.5 million in 2024[246] - Salaries and employee benefits, the largest component of noninterest expense, increased by $1.3 million (6%) for the three months ended September 30, 2025, compared to the same period in 2024[247] Asset and Loan Management - Total average assets as reported for Q3 2025 were $6,738,796,000, down from $7,254,566,000 in Q3 2024, a decrease of 7.1%[196] - The average balance of total loans decreased to $5.16 billion in Q3 2025 from $5.58 billion in Q3 2024, reflecting a decline of $414.2 million[218] - Total loans amounted to $5.1 billion at September 30, 2025, down by $15.3 million, or 0.3%, from the end of 2024[272] Credit Quality and Risk Management - Provision for credit losses in Q3 2025 was $6.8 million, significantly higher than $200 thousand in Q3 2024, reflecting a 3,300% increase, while for the nine months, it rose to $8.6 million from $1.4 million[213] - Total nonperforming assets decreased to $14.0 million as of September 30, 2025, down from $23.3 million at December 31, 2024, resulting in a nonperforming assets to total assets ratio of 0.21%[310] - The allowance for credit losses on loans to total loans was 0.71% as of September 30, 2025, compared to 0.82% at December 31, 2024[310] Capital and Liquidity - Total shareholders' equity increased by $33.3 million (7%) from December 31, 2024, to September 30, 2025[263] - The total risk-based capital ratio was 12.90% at September 30, 2025, up from 12.47% at December 31, 2024, indicating a well-capitalized status[358] - Total contingent liquidity increased to $1.84 billion, representing 127.1% of uninsured deposits[350] Market and Interest Rate Sensitivity - As of September 30, 2025, a 100 basis point decrease in interest rates is estimated to decrease net interest income by 2.11% for the first 12 months[370] - The total change in market value of available for sale debt securities as of September 30, 2025 is projected to be $48,209 thousand with a 100 basis point decrease in rates[374] - Interest-earning assets are expected to reprice more quickly than interest-bearing liabilities as interest rates change[371]