Washington Trust Bancorp Shares Signal Strong Recovery
07.02.2026 - 11:47:04
Washington Trust Bancorp has delivered a robust performance for the fourth quarter of 2025, surpassing market expectations and marking a decisive turnaround from a prior loss-making period. The financial institution reported significant profit growth and an enhanced net interest margin, with core business momentum indicating a recovery in earnings power.
The bank's quarterly earnings per share (EPS) came in at $0.83, beating the analyst consensus estimate of $0.75. Total revenue for the period reached $59.25 million, representing a substantial 20.4% increase compared to the same quarter last year. Net income stood at $16.0 million. Shareholders will receive a quarterly dividend of $0.56 per share.
A primary driver behind these results was the notable expansion in net interest income, which surged by 24% year-over-year to $40.7 million. This improvement is clearly reflected in the key profitability metric of net interest margin (NIM), which rose to 2.56%. This figure not only shows progress from the previous quarter but also marks a significant leap from the year-ago margin of 1.95%. Company leadership attributes this enhanced efficiency to strategic balance sheet optimization and a reduction in deposit interest costs.
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Strategic Growth and Financial Health
Beyond the quarterly figures, Washington Trust is pursuing structural expansion. In January, the formation of a new institutional banking team was announced, aimed at broadening its commercial client business. Furthermore, plans are in place to open a new branch location in Rhode Island later in 2026.
The company's credit quality remained solid at year-end. The provision for credit losses settled at $600,000, suggesting a stable loan portfolio. Total loan volume held steady at approximately $5.1 billion.
For the full year 2025, the bank achieved a net profit of $52.2 million, successfully returning to profitability after reporting a net loss for 2024. However, non-interest expenses in Q4 increased by 6%, propelled by higher personnel costs and bonuses. A key factor for the stock's future trajectory will be the institution's ability to offset this cost growth through the revenue generated by its announced expansion initiatives.
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