Washington Trust Bancorp (WASH) closed out FY 2025 with Q4 total revenue of US$58.7 million and basic EPS of US$0.84, supported by trailing twelve month revenue of US$219.8 million and EPS of US$2.72. The company has seen quarterly revenue move from US$48.3 million in Q3 2024 to US$57.9 million in Q1 2025, US$53.7 million in Q2 and US$49.7 million in Q3, while basic EPS shifted from a loss of US$3.48 in Q4 2024 to positive readings of US$0.63, US$0.69, US$0.57 and US$0.84 across 2025. With a Q4 net income of US$16.0 million and a net interest margin at 2.56%, the latest results put the focus squarely on how sustainable Washington Trust Bancorp's margin profile now looks.

See our full analysis for Washington Trust Bancorp.

With the headline numbers on the table, the next step is to set these results against the widely followed narratives around Washington Trust Bancorp and see where the story lines up and where it gets challenged.

Net Interest Margin Moves Up To 2.56%

• Net interest margin improved from 2.29% in Q1 2025 to 2.56% in Q4, while the cost to income ratio sat at 64.1% in Q4.
• Bulls point to the higher 2.56% margin and US$15.97 million Q4 net income as backing a healthier core banking engine, yet the bullish case meets some friction here:
  • The 64.1% cost to income ratio shows expenses are still a big slice of revenue, so efficiency remains a watch item even with better margins.
  • Trailing twelve month net income of US$52.24 million confirms the bank is back in profit, but does not erase the five year annual earnings decline of 33.3% that more cautious investors highlight.

To see how this margin story fits into the wider long term outlook that investors debate, check out the full balanced narrative on WASH and how different scenarios could play out over time. 📊 Read the full Washington Trust Bancorp Consensus Narrative.

Credit Quality: Non Performing Loans Halved In 2025

• Non performing loans moved from US$26.11 million in Q2 2025 to US$12.92 million in Q4, with total loans broadly steady around US$5.1 billion.
• Bears often focus on credit risk at regional banks, and the Q4 snapshot gives that view some pushback but not a full rebuttal:
  • The reduction in non performing loans compared with Q2 suggests fewer problem loans on the books, which lines up with the company being profitable over the last twelve months.
  • At the same time, five year earnings declining 33.3% per year keeps the bearish argument alive that credit and profitability pressures over a longer stretch are still part of the story.

Valuation Tension: 6.58% Yield And DCF Gap

• Shares trade at US$34.02 with a trailing P/E of 12.4x and a 6.58% dividend yield, compared with a DCF fair value of about US$42.14 and an industry P/E of 11.7x.
• What stands out is how the bullish and bearish angles both find support in the same set of numbers:
  • Supporters highlight the roughly 19% gap between the share price and the DCF fair value plus the 6.58% yield and the return to profit as reasons the current level could appeal to income focused holders.
  • Critics point to the P/E sitting above the US Banks industry average and peers even after the five year earnings decline, arguing that a richer multiple and weaker long run record keep valuation questions on the table.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Washington Trust Bancorp's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Washington Trust Bancorp's five year annual earnings decline of 33.3% and relatively high cost to income ratio suggest its profit trend has been uneven and its efficiency constrained.

If that track record makes you cautious, use our stable growth stocks screener (2170 results) to focus on companies with steadier revenue and earnings, so your portfolio leans on more consistent performers.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.