Washington Trust(US:WASH)2026-01-28 21:08Financial Performance - Fourth quarter 2025 net income was $16.0 million, or $0.83 per diluted share, up from $10.8 million, or $0.56 per diluted share in Q3 2025[1]. - Full-year 2025 net income totaled $52.2 million, or $2.71 per diluted share, compared to a net loss of $28.1 million, or a $1.63 loss per diluted share for 2024[1]. - Net income rose to $15,974 in Q4 2025, a $5,128 increase or 47.3% compared to Q3 2025[27]. - Adjusted net income for Q4 2025 was $15,974, reflecting an increase of $5,128 or 47.3% from $10,846 in Q3 2025, and a substantial recovery from a loss of $60,791 in Q4 2024[63]. - Adjusted net income (non-GAAP) for the year ended December 31, 2025, was $51,827,000, reflecting a 26.8% increase compared to $40,868,000 in 2024[77]. - Reported net income for Q4 2025 was $15,974,000, a 47.3% increase from Q3 2025 and a turnaround from a loss of $60,791,000 in Q4 2024[71]. Revenue and Income Sources - Wealth management revenues rose by 5% to $10.9 million, while mortgage loan originations and sales increased by 21% and 25%, respectively[3][10]. - Noninterest income was $18.5 million, up by $867 thousand, or 5%, while noninterest expense totaled $38.0 million, up by $2.3 million, or 6%[5][6]. - Noninterest income turned positive with a total of $75,860,000, compared to a loss of $27,797,000 in 2024, marking a 372.9% increase[29]. - Total mortgage banking revenues rose by 10.1% to $12,089,000 in 2025 compared to $10,981,000 in 2024, with realized gains on loan sales increasing by 12.9%[38]. Asset and Liability Management - Total assets decreased by $96,227, or 1.4%, from $6,717,921 in Q3 2025 to $6,621,694 in Q4 2025[25]. - Total liabilities decreased by $106,790, or 1.7%, from $6,184,900 in Q3 2025 to $6,078,110 in Q4 2025[25]. - Total loans amounted to $5.1 billion, stable with a $12 million increase, and commercial loans increased by $23 million, or 1%[9]. - Total deposits reached $5.3 billion, up by $47 million, or 1%, with no wholesale brokered deposits reported[11]. Credit Quality and Loss Provisions - The provision for credit losses normalized to $600 thousand, significantly down from $6.8 million in the previous quarter[14]. - Provision for credit losses significantly decreased by $6,200, or 91.2%, from $6,800 in Q3 2025 to $600 in Q4 2025[27]. - Nonperforming assets decreased to $12,923 thousand, down 7.8% from $14,016 thousand in Q3 2025 and down 44.6% from $23,307 thousand in Q4 2024[51]. - The total provision for credit losses for the year was $9,200 thousand, a substantial increase of 283.3% from $2,400 thousand in 2024[57]. Capital and Equity - Capital ratios remained strong, with a total risk-based capital ratio of 12.95% at December 31, 2025, compared to 12.90%[17]. - Total shareholders' equity increased by $10,563, or 2.0%, from $533,021 in Q3 2025 to $543,584 in Q4 2025[25]. - Shareholders' equity increased by $13,150 thousand from $528,315 thousand in September 2025 to $541,465 thousand in December 2025[59]. Efficiency and Returns - Adjusted efficiency ratio for Q4 2025 was 64.1%, an improvement of 80 basis points from 63.3% in Q3 2025, and a decrease of 14,040 basis points from a negative 76.3% in Q4 2024[68]. - Return on average assets improved to 0.95%, up from a negative 3.45% in the previous year[31]. - Adjusted return on average equity (non-GAAP) for Q4 2025 was 11.70%, an increase of 356 basis points from Q3 2025 and a recovery from (48.25%) in Q4 2024[74]. Dividends - The Board of Directors declared a quarterly dividend of $0.56 per share for Q4 2025, paid on January 14, 2026[17].