Washington Trust Reports Second Quarter 2026 Results

WESTERLY, R.I., July 20, 2026 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH; "Washington Trust" or the "Corporation"), today reported second quarter 2026 net income of $16.0 million, or $0.83 per diluted share, up by $3.4 million, or $0.17 per diluted share, from the preceding quarter.  Compared to the second quarter of 2025, net income was up by $2.7 million, or $0.15 per diluted share.

"We are pleased with our second quarter performance, as strong execution across the company drove higher profitability, and solid loan and deposit growth," said Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III.  "The success of our institutional banking team was a key highlight of the quarter, helping drive growth in our commercial and industrial loan portfolio and also contributing meaningfully to overall deposits.  Combined with our strong capital position, these results reinforce our confidence in the outlook for the remainder of 2026 and our ability to deliver sustainable, profitable growth."

SECOND QUARTER HIGHLIGHTS (Q2 2026 vs. Q1 2026, unless otherwise noted):

RESULTS OF OPERATIONS (Q2 2026 vs. Q1 2026, unless otherwise noted):

Net Interest Income
Net interest income was up by $1.3 million, or 3%, and NIM was up by 10 basis points.  Compared to the second quarter of 2025, net interest income was up by $4.6 million, or 12%, and NIM was up by 37 basis points.

Noninterest Income
Noninterest income was up by $1.4 million, or 8%.  Compared to the second quarter of 2025, noninterest income was up by $1.6 million, or 9%.

Noninterest Expense
Noninterest expense was up by $832 thousand, or 2%.  Compared to the second quarter of 2025, noninterest expense was up by $2.1 million, or 6%.

Income Tax
Income tax expense was up by $824 thousand.  The effective tax rate was 21.2%, compared to 21.6%.  The Corporation expects its full-year 2026 effective tax rate to be approximately 21.5%.

FINANCIAL CONDITION (Jun 30, 2026 vs. Mar 31, 2026, unless otherwise noted):

Investment Securities
The securities portfolio totaled $885 million, down by $27 million, or 3%, and remained at 14% of total assets.

Loans
Total loans amounted to $5.1 billion, up by $88 million, or 2%.

Deposits and Borrowings
Total deposits amounted to $5.4 billion, and were up by $194 million, or 4%.  Compared to June 30, 2025, deposits were up by $314 million, or 6%.

There were no wholesale brokered deposits at June 30, 2026 or March 31, 2026, compared to $2 million at June 30, 2025.

FHLB advances totaled $456 million, and were down by $120 million, or 21%.  Compared to June 30, 2025, FHLB advances were down by $545 million, or 54%.

Contingent liquidity amounted to $2.1 billion at June 30, 2026 and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.

Capital and Dividends
Total shareholders' equity was $553.5 million, up by $6.8 million, or 1%.

ASSET QUALITY (Jun 30, 2026 vs. Mar 31, 2026, unless otherwise noted):
Nonaccrual loans were $39.8 million, or 0.78% of total loans, down from $40.4 million, or 0.81%.

Past due loans were $41.4 million, or 0.81% of total loans, up from $16.4 million, or 0.33%.  The increase was attributable to a single commercial real estate office loan that had already been placed on nonaccrual status in the preceding quarter and did not reflect broader deterioration in portfolio credit quality during the quarter.

The provision for credit losses totaled $1.6 million in the second quarter, compared to $4.0 million in the prior quarter.  The second quarter provision provided for loan growth and an increase in specific reserves.  The Corporation recorded $55 thousand of net charge-offs in the second quarter, compared to $10 thousand of net charge-offs in the preceding quarter.

The allowance for credit losses ("ACL") on loans amounted to $42.6 million, or 0.83% of total loans, compared to $41.1 million, or 0.82%.

Conference Call
Washington Trust will host a conference call to discuss its second quarter results, business highlights, and outlook on July 21, 2026, at 8:30 a.m. (Eastern Time).  Individuals may dial in to the call at 1-833-461-5787 and enter Meeting ID 369767940.  A replay of the call will be available on Washington Trust's investor relations website, https://ir.washtrust.com, in the events section under "Q2 - 2026 Washington Trust Bancorp, Inc. Earnings Conference Call Webcast".

Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company.  Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies.  Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut, and Massachusetts.  The Corporation's common stock trades on NASDAQ under the symbol WASH.  Investor information is available on the Corporation's website at https://ir.washtrust.com. 

Forward-Looking Statements
This press release contains statements that are "forward-looking statements."  We may also make forward-looking statements in other documents we file with the U.S. Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors, or employees.  You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters.  You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors, some of which are beyond our control.  These risks, uncertainties, and other factors may cause our actual results, performance, or achievements to be materially different from the anticipated future results, performance, or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following:

In addition, the factors described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. The forward-looking statements in this report were based on information, plans, and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures.  Washington Trust's management believes that the supplemental non-GAAP information, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average equity, and adjusted efficiency ratio, as well as measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors.  These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies.  Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

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Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.