Washington Trust Bancorp (WASH) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $13.2 million ($0.68 per share), up 22% year-over-year and 8% sequentially, driven by higher net interest income, wealth management, and mortgage banking revenues.

• Adjusted net income for Q2 2025 was $13.2 million, up 31% year-over-year, with adjusted EPS at $0.68 versus $0.59.

• Return on average assets for Q2 2025 was 0.80%, and return on average equity was 10.14%.

• Enhanced wealth management team and completed core system conversion to improve client experience.

• Company remains well-capitalized, with strong capital ratios and ongoing capital build.

Financial highlights

• Net interest income for Q2 2025 rose to $37.2 million, up 18% year-over-year and 2% sequentially; net interest margin increased to 2.36%.

• Noninterest income was $17.1 million, up 3% year-over-year; adjusted noninterest income up 9% quarter-over-quarter.

• Noninterest expense was $36.5 million, up 8% year-over-year but down 13% sequentially; adjusted expense up 2% sequentially.

• Provision for credit losses was $600,000 in Q2 2025, down from $1.2 million in Q1.

• Total assets at June 30, 2025 were $6.75 billion, with total loans of $5.14 billion and total deposits of $5.05 billion.

Outlook and guidance

• Margins expected to level out with modest expansion in Q3; deposit costs reaching a peak.

• Full-year 2025 effective tax rate projected at 22.4%.

• Loan growth guidance remains for low single-digit growth for the year.

• Management expects continued benefits from balance sheet repositioning and strong liquidity and capital positions.

• One de novo branch planned for the middle of next year.