# Washington Trust Bancorp Posts 21% Increase in Q3 Net Income as Margins Expand

- URL: https://stocks.freetheai.org/news/washington-trust-bancorp-posts-21-increase-in-q3-net-income-as-margins-expand-119d1e
- Published: 2026-10-19T20:05:00Z
- Category: earnings; sentiment: bullish; impact: medium
- Symbols: [NASDAQ:WASH](https://stocks.freetheai.org/symbols/NASDAQ-WASH)
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Washington Trust Bancorp, Inc. (WASH) reported third-quarter 2026 net income of $19.4 million, representing a 21% increase from the prior quarter. Diluted earnings per share came in at $1.01, up $0.18 sequentially. The bank saw net interest income rise 7% quarter-over-quarter, supported by an 11 basis point expansion in its net interest margin. Noninterest fee income also grew 9% compared to the previous quarter. Shares of the company fell 1.41% to $36.54 in trading.

The quarter reflected fundamental improvements across the institution's funding mix and credit quality. Total deposits grew by $77 million, allowing the bank to reduce Federal Home Loan Bank advances by $80 million, an 18% decline that lowered reliance on wholesale borrowings. Credit metrics improved as nonaccrual loans fell to 0.48% from 0.78% in the preceding quarter following an office loan restructuring.

Going forward, investors will track whether the bank can maintain its expanded net interest margin alongside sustained deposit growth. Continued stability in credit costs and diversification of fee revenue remain key factors to monitor in upcoming quarters.

## Key points

- Washington Trust Bancorp reported Q3 2026 net income of $19.4 million, up 21% sequentially.
- Diluted earnings per share rose by $0.18 quarter-over-quarter to reach $1.01.
- Net interest margin expanded by 11 basis points while net interest income grew 7%.
- Deposits increased by $77 million, enabling an $80 million reduction in wholesale FHLB borrowings.
- Nonaccrual loans declined to 0.48% from 0.78% following the restructuring of office loans.

## Questions and answers

### What were Washington Trust Bancorp's Q3 2026 earnings?

Washington Trust Bancorp reported Q3 2026 net income of $19.4 million, or $1.01 per diluted share, representing a 21% increase from the previous quarter.

### How did Washington Trust Bancorp's profit margin perform in Q3 2026?

The bank's net interest margin expanded by 11 basis points quarter-over-quarter, helping drive a 7% sequential increase in net interest income.

### Did Washington Trust Bancorp's asset quality improve in Q3 2026?

Yes, nonaccrual loans dropped to 0.48% from 0.78% in the prior quarter following an office loan restructuring.