WESTERLY –
Washington Trust Bancorp Inc., the parent of Washington Trust, on Wednesday reported a year-end profit of $52.2 million for 2025, reversing a net loss of $28.1 million in 2024 on growth in wealth management and mortgage banking.
The bank said full-year earnings were equivalent to $2.71 per diluted share, compared with a loss of $1.63 per share a year earlier. Adjusted net income totaled $51.8 million, up from $40.9 million in 2024.
Net interest income for the full year rose about 19% to $153.2 million, up from $128.4 million in 2024, reflecting lower funding costs and improved asset yields.
Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III credited the improved results "margin expansion, strong in-market deposit growth and increases in wealth management and mortgage banking revenues."
The company's net interest margin, a key metric that assesses what the bank earns on interest charged on loans minus the interest it pays for deposits, expanded to 2.40% for the year, up from 1.87% a year earlier.
Meanwhile, noninterest income, or all the revenue a bank earns outside of traditional interest on loans, surged to $75.9 million for 2025, reversing a $27.8 million loss in 2024, driven by gains on the sale of bank-owned properties and higher wealth management and mortgage banking revenue.
Noninterest expense for the full year rose about 11% to $152.4 million, compared with $137.1 million in 2024, driven by higher compensation costs and a pension settlement charge.
For the fourth quarter ended Dec. 31, Washington Trust reported net income of $16 million, a sharp reversal from a net loss of $60.8 million in the fourth quarter of 2024. Earnings per diluted share were 83 cents, compared with a $3.46 loss per share in the fourth quarter of 2024.
Revenue net of interest expense, the money the bank earns after paying interest on deposits and borrowings, totaled $59.3 million for the quarter, up about 23% from a year earlier.
Net interest income rose about 24% year over year to $40.7 million, reflecting a lower cost of funds and loan prepayment income. The net interest margin increased to 2.56% in the quarter, up from 1.95% a year earlier.
Wealth management revenue for the quarter rose about 8% to $10.9 million, while mortgage banking revenue increased 14% from a year earlier to $3.3 million.
"As we enter 2026, the addition of resources in our commercial and wealth management business lines, including the recently announced dedicated institutional banking team, positions us well for sustainable growth," Handy noted.
Total assets stood at approximately $6.62 billion at year-end, while deposits increased about 3% from a year earlier to $5.27 billion. Loan balances were relatively flat at $5.1 billion.
Washington Trust also said its board declared a quarterly common stock dividend of 56 cents per share, paid Jan. 14 to shareholders of record as of Jan. 2.
Washington Trust is the third-largest bank in Rhode Island in terms of deposits, behind only Citizens Bank and Bank of America Corp.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
