Washington Trust Bancorp, Inc. (WASH)

On October 20, 2025, Washington Trust Bancorp, Inc. reported its third-quarter net income of $10.8 million, or $0.56 per diluted share, a decrease from the second quarter. The net interest margin for the third quarter was 2.40%, an increase of 4 basis points from the second quarter. The securities portfolio decreased by $9 million, and total loans decreased by $18 million, primarily due to a reduction in residential real estate loans. Total deposits rose by $178 million, and FHLB advances decreased by $210 million. The company's contingent liquidity stood at $1.8 billion as of September 30, 2025. Noninterest income increased by 3%, with wealth management and mortgage banking revenues up. A provision for credit losses on loans of $7.0 million was recognized. The company repurchased 237,000 shares in Q3 and an additional 21,000 shares in October. As of October 9, the stock was considered 23% undervalued after a recent price drop. A second-quarter dividend of US$0.56 was announced on September 20.

Washington Trust Bancorp, Inc. experiences some demand seasonality in its services, with seasonal tax servicing fee income concentrated in the second quarter, impacting wealth management revenues.

Washington Trust Bancorp, Inc. is the publicly-owned holding company for The Washington Trust Company, the oldest community bank in the United States and the largest state-chartered bank headquartered in Rhode Island. The company operates as a premier financial services provider in the Northeast, primarily within the banking sector, offering commercial banking, mortgage banking, personal banking, and wealth management and trust services.

The company's operations are concentrated in the Northeast, with offices located across Rhode Island, Connecticut, and Massachusetts. Washington Trust has strategically expanded its mortgage lending, commercial banking, and wealth management operations beyond its core Rhode Island market. In 2022, the company opened a new branch in Cumberland, Rhode Island, identified future branch locations in Providence, Barrington, and Smithfield, and established a commercial lending office in New Haven, Connecticut.

Washington Trust Bancorp, Inc. has maintained a positive brand reputation in the past year. Forbes recognized Washington Trust as Rhode Island's "Best-In-State Bank" for the fourth consecutive year. The company has been involved in community initiatives, such as hosting an educational event to help seniors protect themselves from financial scams and organizing free community shred days while collecting food to combat hunger. Betsy Flanagan of Washington Trust was honored with the Rhode Island Bankers Association's 'Bank Forward Trailblazer' award. The opening of its 28th branch in the Olneyville neighborhood of Providence, R.I., also contributed to its community presence.

Washington Trust Bancorp, Inc. has significant institutional ownership, with 352 institutional owners and shareholders holding a total of 15,991,378 shares. Major institutional shareholders include BlackRock, Inc., Fmr Llc, Vanguard Group Inc, Dimensional Fund Advisors Lp, State Street Corp, Geode Capital Management, Llc, and Franklin Resources Inc., with BlackRock, Inc. being the largest shareholder. Institutional investors collectively own more than half of the company. The general public holds approximately 31% ownership, and insiders own shares valued at approximately $11 million.