- Washington Trust Bancorp (WASH, Financial) reported a Q1 2025 net income of $12.2 million, or $0.63 per diluted share.
- Net interest margin improved by 34 basis points to 2.29%.
- In-market deposits grew 4% to $5.0 billion.
Washington Trust Bancorp (WASH) has announced its financial results for the first quarter of 2025, revealing a net income of $12.2 million, or $0.63 per diluted share. These results included a significant pre-tax gain from sale-leaseback transactions totaling $7.0 million and a $6.4 million pre-tax charge related to a pension plan settlement.
The bank's net interest margin saw a notable increase of 34 basis points, reaching 2.29%, up from the previous quarter's 1.95%. This improvement is attributed to balance sheet repositioning activities that the bank undertook in the last quarter of 2024, which involved selling lower-yielding assets and reducing higher-cost wholesale funding.
In-market deposits saw a growth of 4%, reaching a total of $5.0 billion, reflecting the bank's successful effort to strengthen its core deposit base while significantly reducing wholesale brokered deposits by 91% to $27 million. Total loans, however, experienced a slight decrease of 1% to $5.1 billion.
The bank's wealth management revenues saw a 2% decline, correlating with a 4% drop in assets under administration to $6.8 billion. Additionally, mortgage banking revenues were down by 19% as lower loan sales impacted the segment.
Asset quality showed positive signs, with nonaccrual loans reduced to 0.42% of total loans, and the allowance for credit losses stood at 0.81%. Despite increased net charge-offs, the capital position of Washington Trust strengthened, with the total risk-based capital ratio improving to 13.13%. Consistent with its strong financial position, the Board declared a quarterly dividend of $0.56 per share, distributed on April 11, 2025, to shareholders of record as of April 1, 2025.
