WESTERLY – Washington Trust Bancorp Inc. on Monday reported a profit of $12.2 million for the first quarter, an increase of 11% from the $10.9 million net earnings it posted a year ago.
Earnings per diluted share were 63 cents, down 1 cent from the first quarter of 2024.
Total revenue for the bank – interest income and noninterest income – amounted to $102.1 million for the first quarter, dropping slightly from the $102.4 million reported during the first quarter of 2024.
Its revenue net of interest expense – which is a company's revenue after deducting interest expense – was $59.1 million, exceeding Wall Street forecasts. Washington Trust posted a total interest expense of $43 million, down nearly 22% from the $53.6 million the bank reported this time last year.
Revenue decreased mostly due to a drop in interest and fee income on loans, which declined 12.5% to $66.6 million year over year from $75.6 million in 2024. Mortgage banking revenues totaled $2.3 million for the first quarter of 2025, an 8% decrease from the $2.5 million posted a year ago.
Meanwhile, net interest margin – a key metric – was 2.29% for 2025, up from 1.84% reported a year ago. The bank attributed the improved margin to its balance sheet "repositioning" strategy of selling off low-yielding assets at a $70 million loss.
In-market deposits increased 6% year over year. The bank reported $5.01 billion this past quarter in in-market deposits, while it posted $4.67 billion in the 2024 first quarter.
"Washington Trust's first-quarter results reflected our effective focus on our balance sheet, resulting in expansion of net interest margin and in-market deposit growth," said Edward O. "Ned" Handy III, Washington Trust chairman and CEO. "In our 225th year, we remain steadfast in our commitment to our customers and the communities we serve."
Wealth management revenues were up 6% for the first quarter of 2025, with $9.9 million reported in 2025 compared with $9.3 million last year.
Total deposits amounted to $5.04 billion, down slightly from $5.35 billion reported in the first quarter of 2024.
In the first quarter of 2025, the bank reported that sales leaseback transactions were completed for five branch locations with a pre-tax net gain on the sale of the bank-owned properties totaling $7 million, which was recognized within noninterest income. Those transactions boosted noninterest income for the quarter to $22.64 million, up from $17.2 million a year earlier.
Additionally, a pre-tax non-cash pension plan settlement charge of $6.4 million in connection with the termination of the bank's qualified pension plan was recognized within noninterest expenses. Noninterest expenses for the quarter totaled $42.2 million, a 20% increase compared with $34.3 million reported in the same period a year ago.
Total loans amounted to $5.1 billion for the first quarter of 2025, down 11% from $5.7 billion.
The bank reported $6.58 million in total assets in 2025, a decrease of 9.7% from $7.25 million in the first quarter of 2024.
(Material from The Associated Press was used in this report.)
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
