Washington Trust Bancorp (WASH) Q1 2026 earnings summary

Executive summary

• Q1 2026 performance benefited from net interest margin expansion and strong core banking fundamentals, aided by prior balance sheet repositioning.

• Net income for Q1 2026 was $12.6 million ($0.66/share), down from $16 million ($0.83/share) in Q4 2025, but up $421 thousand year-over-year on a GAAP basis and $838 thousand on an adjusted basis.

• 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.

• A new branch in Pawtucket, RI, will open later in 2026, expanding regional presence.

Financial highlights

• Net interest income was $40.5 million, down 1% sequentially but up 11% year-over-year.

• Net interest margin (NIM) was 2.63%, up 7 bps from Q4 and 34 bps year-over-year.

• Non-interest income fell 6% sequentially but rose 11% year-over-year on an adjusted basis.

• Non-interest expense was $37.8 million, down 1% sequentially; adjusted noninterest expense increased 6% year-over-year.

• Provision for credit losses was $4 million, up from $600 thousand in Q4 2025.

Outlook and guidance

• Loan growth for 2026 is projected at mid-single digits, with most growth expected from 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%.