Washington Trust Bancorp shares rise after beating Q3 expectations

Published 20/10/2025, 21:18
Washington Trust Bancorp shares rise after beating Q3 expectations

Investing.com -- Washington Trust Bancorp, Inc. (NASDAQ:WASH) reported third quarter 2025 earnings that exceeded analyst expectations, with shares rising 2% in after-hours trading on Monday following the announcement.

The Rhode Island-based financial services company posted adjusted earnings per share of $0.56, surpassing the analyst estimate of $0.52. Revenue came in at $56.4 million, above the consensus estimate of $55.98 million.

"In the third quarter we expanded our net interest income and margin, grew our wealth management and mortgage banking revenues, delivered strong in-market deposit growth, and prudently managed expenses," said Washington Trust Chairman and CEO Edward O. "Ned" Handy III.

The company’s net interest margin improved to 2.40% in the third quarter, up 4 basis points from the previous quarter and 55 basis points higher than the same period last year. Wealth management revenues increased 3% from the second quarter to $10.4 million, while mortgage banking revenues rose 15% to $3.5 million.

Total loans remained relatively stable at $5.1 billion, while in-market deposits grew 4% from the previous quarter to $5.2 billion, representing a 9% increase from the same period in 2024.

The bank recorded a $7 million provision for credit losses in the quarter, significantly higher than the $650,000 set aside in the second quarter. This increase was primarily due to charge-offs of $11.3 million on two commercial loan relationships, including one related to a telecom infrastructure contractor that filed for bankruptcy.

Despite these credit challenges, nonaccrual commercial loans decreased substantially to $1 million, down from $14 million at the end of the second quarter and $18.9 million a year earlier.

The company declared a quarterly dividend of 56 cents per share, which was paid on October 10 to shareholders of record as of October 1.

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