Press Release

Washington Trust Reports Third Quarter 2026 Results

Oleh Maswan 20 Oct 2026 03:05 10 menit baca

EmitenTrust.com WESTERLY, R.I., Oct. 19, 2026 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH; "Washington Trust" or the "Corporation"), today reported third quarter 2026 net income of $19.4 million, up by $3.4 million, or 21%, from the preceding quarter. Diluted earnings per share was $1.01 for the third quarter of 2026, up by $0.18 from the preceding quarter. Compared to the third quarter of 2025, net income was up by $8.5 million, or $0.45 per diluted share.

"We delivered another strong quarter marked by growth in earnings and net interest income, continued margin expansion and improved operating efficiency," said Washington Trust Chairman and Chief Executive Officer Edward O. "Ned" Handy III. "By combining personalized service and trusted advice with the capabilities of a regional bank, we are able to provide customers with a level of service, expertise and convenience that stands apart from other community banks our size. We continue to focus on leveraging these strengths to support prudent growth and deliver long-term value for our shareholders."

THIRD QUARTER HIGHLIGHTS (Q3 2026 vs. Q2 2026, unless otherwise noted):

Profitability metrics improved with returns on average equity and average assets of 13.89% and 1.17%, compared to 11.61% and 0.99%, respectively.
Net interest margin ("NIM") expanded to 2.84%, up by 11 basis points.
Asset quality metrics improved, reflecting the resolution of a commercial real estate office loan.
The provision for credit losses was $1.8 million for the third quarter.
Total noninterest income was up by 9%.
Total noninterest expenses increased modestly by 0.5%.
Loan balances were up by $61.8 million from June 30, 2026.
Deposits reached an all-time high of $5.4 billion and were up by $77.1 million from June 30, 2026.
Capital ratios remained strong, with a common equity tier 1 ratio of 11.93% at September 30, 2026.

RESULTS OF OPERATIONS (Q3 2026 vs. Q2 2026, unless otherwise noted):

Net Interest Income
Net interest income was up by $2.9 million, or 7%, and NIM was up by 11 basis points. Compared to the third quarter of 2025, net interest income was up by $5.9 million, or 15%, and NIM was up by 44 basis points.

Net interest income for the third quarter of 2026 amounted to $44.7 million and included the receipt of previously unrecognized second quarter interest income of $283 thousand (equivalent to $0.01 per diluted share or a 2 basis points benefit to NIM) associated with the resolution of a commercial real estate office loan that returned to accruing status in the third quarter.
Average interest-earning assets increased by $104 million, and the yield was up by 7 basis points.
Average interest-bearing liabilities increased by $52 million, and the rate was down by 3 basis points.

Noninterest Income
Noninterest income was up by $1.6 million, or 9%. Compared to the third quarter of 2025, noninterest income was up by $2.6 million, or 15%.

Wealth management revenues decreased by $112 thousand, or 1%, as increased asset-based revenues were offset by a seasonal decline in tax servicing fee income. Compared to the third quarter of 2025, wealth management revenues increased by $716 thousand, or 7%.
Mortgage banking revenues were down by $318 thousand, or 9%, reflecting a decrease in the mortgage pipeline and rising market interest rates. Compared to the third quarter of 2025, mortgage banking revenues were down by 10%.
Loan related derivative income totaled $1.5 million, up by $924 thousand, driven by increased commercial borrower demand for interest rate swap transactions.
Income from bank-owned life insurance totaled $1.9 million, up by $959 thousand, due to the recognition of a non-taxable gain of $954 thousand (equivalent to $0.05 per diluted share).

Noninterest Expense
Noninterest expense was up by $200 thousand, or 0.5%. Compared to the third quarter of 2025, noninterest expense was up by $3.1 million, or 9%.

Salaries and employee benefits expense decreased by $188 thousand, or 0.7%. Compared to the third quarter of 2025, salaries and employee benefits expense increased by $2.5 million, or 11%, reflecting annual merit and staffing increases.
All other noninterest expenses increased by $388 thousand, or 3%, largely reflecting volume-related increases in outsourced services expense. Compared to the third quarter of 2025, all other noninterest expenses increased by $621 thousand, or 5%.

Income Tax
Income tax expense was up by $692 thousand. The effective tax rate was 20.4%, compared to 21.2%. The Corporation expects its full-year 2026 effective tax rate to be approximately 21.5%.

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

Investment Securities
The securities portfolio totaled $818 million, down by $68 million, or 8%, reflecting a decrease of $44 million in the fair value of available for sale securities, as well as routine pay-downs. The securities portfolio represented 13% of total assets, compared to 14%.

Loans
Total loans amounted to $5.2 billion, up by $62 million, or 1%.

Commercial loans increased by $62 million, or 2%, driven by growth in the commercial real estate portfolio.
Residential real estate loans decreased by $12 million, or 1%.
Consumer loans increased by $12 million, or 3%.

Deposits and Borrowings
Total deposits amounted to $5.4 billion, and were up by $77 million, or 1%. Compared to September 30, 2025, deposits were up by $213 million, or 4%.

There were no wholesale brokered deposits at September 30, 2026, June 30, 2026, or September 30, 2025.

FHLB advances totaled $376 million, and were down by $80 million, or 18%. Compared to September 30, 2025, FHLB advances were down by $415 million, or 52%. This decline reflected increases in deposits and timing of liquidity management activities.

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

Capital and Dividends
Total shareholders' equity was $530.8 million, down by $22.8 million, or 4%, as net income was offset by a decline in the accumulated other comprehensive income ("AOCI") component of shareholders' equity, as well as quarterly dividend declarations. The decrease in AOCI was driven by the reduction in fair value of available for sale debt securities due to changes in market interest rates.

The Board of Directors declared a quarterly dividend of 56 cents per share for the third quarter. The dividend was paid on October 9, 2026 to shareholders of record on October 1, 2026.
Capital levels exceeded the regulatory minimum levels to be considered well capitalized, with a common equity tier 1 ratio of 11.93%, compared to 11.89%.
Book value per share was $27.82, compared to $29.02.

ASSET QUALITY (Sep 30, 2026 vs. Jun 30, 2026, unless otherwise noted):
Nonaccrual loans were $24.5 million, or 0.48% of total loans, down from $39.8 million, or 0.78%. Past due loans were $27.9 million, or 0.54% of total loans, down from $41.4 million, or 0.81%.

The improvement in asset quality was driven by the resolution of one commercial real estate office loan for $22.3 million that was previously placed on nonaccrual status in the first quarter of 2026. In the third quarter, this loan was restructured and bifurcated, resulting in $18.5 million being returned to accruing status and $3.8 million being charged off.

The provision for credit losses totaled $1.8 million in the third quarter, compared to $1.6 million in the prior quarter.

The allowance for credit losses ("ACL") on loans amounted to $40.5 million, or 0.78% of total loans, compared to $42.6 million, or 0.83%. The ACL on loans to total loans (coverage ratio) is affected by the timing and extent of charge-offs. Net charge-offs totaled $3.9 million in the third quarter, compared to $55 thousand in the preceding quarter.

Conference Call
Washington Trust will host a conference call to discuss its third quarter results, business highlights, and outlook on October 20, 2026, at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-461-5787 and enter Meeting ID 797102163. A replay of the call will be available on Washington Trust's investor relations website, https://ir.washtrust.com, in the events section under "Q3 - 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:

changes in general business and economic conditions (including the impact of ongoing armed conflicts, tariffs, inflation, future U.S. government shutdowns, and concerns about liquidity) on a national basis and in the local markets in which we operate;
interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;
changes in customer behavior due to political, business and economic conditions;
changes in loan demand and collectability;
the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments;
ongoing volatility in national and international financial markets;
reductions in the market value or outflows of wealth management assets under administration;
decreases in the value of securities and other assets;
increases in defaults and charge-off rates;
changes in the size and nature of our competition;
changes in, and evolving interpretations of, existing and future laws, rules and regulations;
changes in accounting principles, policies and guidelines;
operational risks including, but not limited to, changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest and future pandemics;
regulatory, litigation and reputational risks; and
changes in the assumptions used in making such forward-looking statements.

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.

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.