Washington Trust Bancorp Stock Earnings Reports

Washington Trust reported Q1 2026 net income of $12.6 million ($0.66/share), down from $16.0 million the prior quarter. Net interest margin expanded to 2.63% (up 7 bps sequentially, 34 bps YoY) and net interest income was $40.5 million. The quarter included a $4.0 million provision for credit losses driven primarily by increased specific reserves on two commercial real estate (office) loans that were placed on nonaccrual. Noninterest income was modestly lower sequentially (loan-related derivative income and wealth management down), while noninterest expense was largely stable. Loans were down ~2% from December (commercial CRE payoffs drove most of the decline); the commercial pipeline was cited as roughly $156 million. Deposit balances were down slightly sequentially and the loan-to-deposit ratio was 96.9% at quarter end. Management completed a personal digital banking conversion and continues conversion of business accounts; they are adding commercial bankers and opened an institutional banking team (added in January) that management expects will drive loan and deposit growth. Guidance/forward-looking remarks: management reiterated a mid-single-digit loan growth target for 2026 (with CRE expected to be low single-digit/flat and core C&I and institutional banking expected to drive most of the growth), expects modest quarterly provision run-rate of roughly $1–$2 million, and highlighted margin tailwinds from swap terminations (9 bps benefit in Q2 and 4 bps in Q3) and ongoing organic NIM expansion (management expects NII/NIM to rise into year-end, with a Q4 spot margin target implied around 275–280 bps). Capital ratios remain strong; management is not actively repurchasing shares at this time and continues a dividend policy.