Washington Trust Bancorp (WASH) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $12.6 million ($0.66 per diluted share), up year-over-year but down from Q4 2025, reflecting higher net interest income, growth in wealth management and mortgage banking, and higher credit loss provisions due to two CRE office loans.

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

• Wealth management AUA reached $7.5 billion, with 91% managed and 76% high net worth clients; AUA increased 10% year-over-year.

• 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.

• Noninterest income was $17.3 million, down 6% sequentially but up 11% year-over-year on an adjusted basis.

• Noninterest expense was $37.8 million, down 1% sequentially; adjusted noninterest expense rose 6% year-over-year.

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

• Return on average equity was 9.23% and return on average assets was 0.78%.

Outlook and guidance

• Loan growth for 2026 is projected at mid-single digits, led by C&I and institutional banking.

• CRE loan growth expected to be flat to low single digits, with intentional moderation.

• 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%.