Washington Trust Q3 Net Income Rises 21% as Net Interest Margins Expand
Washington Trust Bancorp, Inc. (NASDAQ:WASH) reported third-quarter 2026 net income of $19.4 million, representing a 21% increase from the prior quarter. Diluted earnings per share reached $1.01, up $0.18 quarter-over-quarter. Net interest income totaled $44.7 million as net interest margin expanded by 11 basis points to 2.84%. Meanwhile, total deposits reached a record $5.44 billion, and total loans grew modestly to $5.165 billion.
The financial results reflect strengthening core profitability and improved asset quality. Noninterest income rose 8.6% to $20.3 million, helped by increased derivative income, while total expenses remained steady, bringing the efficiency ratio down to 59.7%. In addition, nonaccrual loans declined to $24.5 million following the resolution and restructuring of a $22.3 million commercial real estate office loan.
Looking ahead, investors will monitor whether the regional bank can maintain deposit growth and net interest margin gains in shifting rate environments. Key operational areas to watch include commercial real estate loan trends, mortgage banking activity following recent pipeline slowdowns, and capital preservation, with the common equity tier 1 ratio currently at 11.93%.
Key points
- Q3 2026 net income increased 21% quarter-over-quarter to $19.4 million, with diluted earnings per share rising to $1.01.
- Net interest margin expanded by 11 basis points to 2.84%, generating $44.7 million in net interest income.
- Total deposits reached an all-time high of $5.44 billion, while total loans grew modestly to $5.165 billion.
- Nonaccrual loans declined to $24.5 million after the resolution and restructuring of a $22.3 million office loan.
- Total noninterest income rose to $20.3 million, and the efficiency ratio improved to 59.7%.
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What were Washington Trust's Q3 2026 earnings?
Washington Trust reported Q3 2026 net income of $19.4 million, or $1.01 per diluted share, representing a 21% increase from the prior quarter.
What was Washington Trust's net interest margin in Q3 2026?
Net interest margin expanded to 2.84% in the third quarter of 2026, an 11 basis point increase compared to the second quarter.
What were Washington Trust's deposit and loan totals in Q3 2026?
Deposits reached a record $5.44 billion as of September 30, 2026, while total loans rose quarter-over-quarter to $5.165 billion.