Washington Trust Bancorp (WASH) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $16.0 million ($0.83 per share), up $3.4 million from Q1 and 21% year-over-year, reflecting higher profitability, solid loan and deposit growth, and margin expansion driven by institutional banking and C&I.

• Wealth management and mortgage banking revenues posted solid increases, with wealth management AUA reaching $7.9 billion, up 10% from year-end 2025.

• Opened new branches and enhanced digital banking solutions, expanding presence in key markets and improving customer experience.

• Welcomed a new board member with expertise in digital innovation, AI, and cybersecurity.

• Results were offset by higher provision for credit losses and increased salaries and benefits.

Financial highlights

• Net interest income for Q2 2026 was $41.8 million, up 3% sequentially and 12% year-over-year; net interest margin improved to 2.73%.

• Noninterest income for Q2 2026 was $18.7 million, up 8% sequentially and 9% year-over-year, led by wealth management (+5%) and mortgage banking (+14%).

• Pre-provision pretax net revenue increased 9% from Q1 and 23% year-over-year.

• Noninterest expense for Q2 2026 was $38.6 million, up 2% sequentially and 6% year-over-year, mainly due to higher salaries and benefits.

• Diluted EPS for Q2 2026 was $0.83, up from $0.68 a year ago.

Outlook and guidance

• Expect mid-single-digit overall loan growth for the year, led by institutional banking and C&I.

• Management plans to open two new branches in Rhode Island in 2026 and focus on organic deposit growth.

• Anticipate Q3 margin at 2.75% and Q4 at 2.80%; full-year 2026 effective tax rate expected at 21.5%.

• Third quarter expenses expected to rise by $1 million, just under $39 million.

• ALCO simulations indicate net interest income is expected to trend higher over the next 12-24 months under unchanged rate scenarios.