Washington Trust Bancorp (WASH) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income was $12.6 million ($0.66/share), up 3% year-over-year and up $421 thousand on a GAAP basis, but down from $16 million ($0.83/share) in Q4 2025, reflecting higher net interest income and growth in wealth management and mortgage banking, partially offset by increased credit loss provisions and compensation costs.

• Diluted EPS was $0.66, up from $0.63 in Q1 2025; adjusted diluted EPS was $0.66 versus $0.61 last year.

• Net interest margin rose to 2.63%, up 7 bps sequentially and 34 bps year-over-year, aided by prior balance sheet repositioning.

• Digital banking conversion for personal accounts completed, with business accounts to follow, enhancing customer experience and security.

• New hires in commercial, C&I, CRE, and institutional banking are expected to drive loan and deposit growth.

Financial highlights

• Net interest income was $40.5 million, down 1% sequentially but up 11% year-over-year, driven by lower funding costs and favorable balance sheet shifts.

• Noninterest income was $17.3 million, down 6% sequentially and 24% year-over-year due to prior year’s one-time gain; adjusted noninterest income rose 11% year-over-year.

• Noninterest expense was $37.8 million, down 1% sequentially but up 6% year-over-year on an adjusted basis due to higher salaries and benefits.

• Provision for credit losses increased to $4.0 million, reflecting specific reserves for two nonaccrual CRE office loans.

• Net charge-offs were $10 thousand, down from $2.3 million in Q1 2025.

Outlook and guidance

• Loan growth for 2026 is projected at mid-single digits, led by C&I and institutional banking, while CRE loan growth is expected to be flat to low single digits.

• NIM expected to rise to 2.65–2.70% in Q2 and 2.75–2.80% in Q4, aided by swap termination benefits.

• Provision for credit losses anticipated at $1–2 million per quarter, barring further credit deterioration.

• Full-year effective tax rate expected at approximately 21.5%.

• Management remains focused on organic deposit growth and prudent credit risk management amid competitive deposit markets and economic uncertainty.