Washington Trust Reports Second Quarter 2025 Results

Core Viewpoint - Washington Trust Bancorp, Inc. reported a positive performance in the second quarter of 2025, with net income increasing to $13.2 million, reflecting growth in net interest income, wealth management revenue, and mortgage banking revenue, while maintaining a well-capitalized position [1][2]. Financial Performance - Net income for Q2 2025 was $13.2 million, or $0.68 per diluted share, up from $12.2 million, or $0.63 per diluted share in Q1 2025 [1]. - Adjusted net income for Q1 2025 was $11.8 million, or $0.61 per diluted share [1]. - Net interest income for Q2 2025 was $37.2 million, an increase of $763 thousand, or 2%, from Q1 2025 [3]. - Noninterest income decreased to $17.1 million in Q2 2025, down by $5.6 million, or 24.6%, from Q1 2025 [3]. - Noninterest expense totaled $36.5 million in Q2 2025, down by $5.7 million, or 13%, from Q1 2025 [4]. Income Tax and Provision for Credit Losses - Income tax expense for Q2 2025 was $3.9 million, with an effective tax rate of 22.7%, compared to $3.5 million and 22.3% in Q1 2025 [5]. - A provision for credit losses of $600 thousand was recognized in Q2 2025, down from $1.2 million in Q1 2025 [6][13]. Wealth Management and Mortgage Banking - Wealth management revenues increased by 2% in Q2 2025, totaling $10.1 million [6]. - Mortgage banking revenues rose by 32% in Q2 2025, amounting to $3.0 million, reflecting a higher volume of loans sold to the secondary market [6][30]. Loans and Deposits - Total loans reached $5.1 billion at the end of Q2 2025, up by 1% from Q1 2025 [8]. - In-market deposits amounted to $5.0 billion, also up by 1% from Q1 2025 [8]. Asset Quality - Nonaccrual loans were $26.1 million, or 0.51% of total loans, at the end of Q2 2025, compared to $21.6 million, or 0.42% in Q1 2025 [10]. - Past due loans increased to $14.0 million, or 0.27% of total loans, from $10.2 million, or 0.20% in Q1 2025 [11]. Capital and Dividends - Total shareholders' equity was $527.5 million at the end of Q2 2025, up by $5.8 million, or 1%, from Q1 2025 [14]. - A quarterly dividend of 56 cents per share was declared for Q2 2025 [15]. Conference Call - Washington Trust will host a conference call on July 22, 2025, to discuss its second quarter results and outlook [16].